Lake Bluff is weighing a 15-year sales tax sharing deal that would send an estimated $5.5 million to $12.4 million to Zeigler Auto Group in exchange for the luxury car dealer's $6.9 million facility investment and a commitment to stay in the village rather than relocate to Hoffman Estates.
The village's Finance Committee took up the proposal at its Monday, June 22 meeting, alongside a separate discussion about investing in a senior housing project in neighboring Lake Forest. Neither item had previously reached a public forum.
Zeigler Deal: Shared Revenue for $6.9 Million in Improvements
Zeigler Auto Group operates Lake Forest Sportscars, a luxury and exotic vehicle dealership in Lake Bluff. The company has told the village it would stay if Lake Bluff agrees to share a portion of future sales tax growth.
Under the proposed structure, the village keeps the first $300,000 in annual sales tax receipts. Zeigler receives the next $300,000. Anything above $600,000 is split 50-50. The term is 15 years, retroactive to January 1, 2026.
In return, Zeigler would invest roughly $6.9 million: about $2.4 million for a Pagani dealership build-out and approximately $4.5 million in Ferrari-mandated facility improvements.
Village Administrator R. Drew Irvin and Finance Director Bettina O'Connell wrote in a staff memo dated Friday, June 19 that the village would not be sharing existing sales tax revenues, only a portion of future growth above the established baseline.
Under Zeigler's own growth projections, the village would retain about $12.9 million over the deal's life while Zeigler receives roughly $12.4 million. A more conservative 9% annual growth scenario puts the village's take at $6.2 million and Zeigler's at $5.5 million.
Lake Bluff has struck similar deals before: a 1996 agreement with Knauz Motors, a 2010 deal with Semersky Enterprises, and a 2013 arrangement with Target Corporation.
Senior Cottages: Lake Bluff Asked to Help Fund Regional Project
The committee also discussed whether Lake Bluff should invest in the "Senior Cottages Project," a proposed development of 8 to 12 affordable cottages for seniors at the northwest corner of Everett Road and Telegraph Road in Lake Forest.
The City of Lake Forest has committed $1 million and 2.23 acres of city-owned land. The project, a partnership among Lake Forest, the Lake Forest/Lake Bluff Senior Citizens' Foundation, and Community Partners for Affordable Housing, is pursuing up to $2.4 million in state tax credits. Construction has not started.
Lake Bluff was invited to participate as part of a regional approach to implementing portions of its own Affordable Housing Plan. The committee packet did not specify a dollar amount the village is being asked to contribute. About 22% of the 1,072 members at Dickinson Hall, the shared Lake Forest–Lake Bluff Senior Center, are Lake Bluff residents.
What's Next
The June 22 session was a discussion meeting. No formal vote was taken on either item. The Finance Committee, chaired by Trustee Susan Rider, has not announced when it will send a recommendation to the full Village Board.
