Lake Bluff will share up to $6.9 million in sales-tax revenue with Zeigler Auto Group over the next 15 years to keep the luxury dealer at 990 North Shore Drive and bring one of the world's rarest car brands to the village.

The Village Board voted 5-0 on Aug. 10 to approve the economic incentive agreement with Zeigler Lake Forest, LLC. The deal funds roughly $2.4 million in construction for a new Pagani dealership and approximately $4.5 million in Ferrari-mandated facility upgrades at the same site.

Pagani, an Italian hypercar manufacturer that produces a very limited number of vehicles annually, has only a handful of U.S. dealers, including locations in Beverly Hills, San Francisco and Greenwich, Connecticut.

Why the village acted

Zeigler informed Lake Bluff in April that it had more financially favorable relocation opportunities in Hoffman Estates but preferred to stay if the village would enter a sales-tax sharing arrangement. The village's Finance Committee reviewed the proposal June 22 and unanimously recommended approval, according to a staff memo prepared by Village Administrator R. Drew Irvin and Finance Director Bettina O'Connell.

The vote was unanimous.

Village President Regis Charlot said the agreement "retains a key employer and investor, preserves a premier luxury dealership, and adds Pagani alongside Ferrari."

How the money works

The village keeps all sales tax up to a baseline of roughly $300,000 per year, equivalent to about $30 million in taxable sales. Zeigler receives 100% of additional village sales tax between $300,000 and $600,000 annually. Revenue above $600,000 is split 50-50.

The agreement is retroactive to July 1, 2026, and ends after 15 years or when total rebates hit $6.9 million, whichever comes first. If Zeigler defaults, rebates stop and a portion may be repaid.

Irvin told the Finance Committee the village is not sharing existing revenues but rather a portion of future revenue growth resulting from Zeigler's continued operation and planned investment in Lake Bluff.

Lake Bluff has used similar deals before, including a $4.2 million, 10-year agreement with Target in 2013 and earlier arrangements with Knauz Motors (1996) and Semersky Enterprises (2010).

Affordable Housing Plan also approved

At the same meeting, the board voted 5-0 to approve an updated Affordable Housing Plan required by the Illinois Affordable Housing Planning and Appeal Act. The amendments update housing data, align goals with current state law and set a 24-month implementation timeline.

Village Attorney Peter Friedman confirmed the statute does not compel the village to construct a fixed number of units once the plan is accepted by the Illinois Housing Development Authority.

Still, trustees signaled interest in moving beyond paperwork. Trustee Susan Rider called the JAWA property "the most promising place to make progress on senior affordable housing." Village President Charlot noted the village owns two parcels near North Avenue and Walnut that could serve as implementation sites, possibly with a nonprofit partner. Trustee Brian Rener suggested establishing an affordable housing trust fund and in-lieu fee mechanism for future developments.

The board's next regular meeting is Monday, Aug. 24 at 7 p.m. at Village Hall, 40 E. Center Ave.