Ms. Teresa Habczyk is the owner of Le Obsession, an apparel and jewelry retailer located Downtown since late 2014.  She is requesting Village approval for a Small Business Sales Tax Rebate incentive reflecting the expansion of her store from 625 square feet to 1,350 at the beginning of 2018.

Although build-out of the expansion was completed in early 2018, Village Staff had been working with the owner, prior to the proposed expansion, regarding her interest in this program.  She had hoped to complete submittal for the incentive prior to build-out, but due to timing and costs, the expansion was the priority.  Additionally, some documentation required by the program, such as a business plan and updated lease, was not available at the time.  Ms. Habczyk was aware that she would be submitting the application after completing the expansion, and understands that the incentive is not guaranteed.

Over the course of the past year, the owner has completed a business plan, provided an updated lease, and submitted a completed application.  Additionally, the sales tax rebate agreement has had to be amended multiple times to verify that the correct legal entities are represented.  As the documentation has been received or updated at varying times, this explains why the request is only being submitted to the Village Board at this time.

• The Village's guidelines for existing Arlington Heights businesses are based upon: Expanding floor area by at least 25%
• Operating at least 40 hours per week

• Being open until at least 8:00 pm on one weekend evening, per week, from April 1-October 31

This criteria is met as the owner has doubled her square footage, and is open from at least 10:00 am to 6:00 pm Tuesday through Saturday.  From April through October, the owner keeps her store open until 8:00 pm on Friday evenings.

Per the terms of the program, approved initially by the Village Board in 2011 and then modified in 2017, an existing Arlington Heights retailer is eligible for 50% of the new municipal sales taxes generated above the base year (the full year prior to expansion).  In this case, the base year is 2017.  The Village will disseminate the rebate amount on April 15th of every year for the duration of the lease (not to exceed five years).  Ms. Habczyk has signed an agreement in order to adhere to the hours of operation requirements of the incentive program.

Since the creation of the Small Business Sales Tax Rebate program in 2011, no prior business has come to the Village Board to request approval.  Le Obsession is a unique, independent merchant that has invested in Arlington Heights by doubling its space in order to provide a more extensive retail option for Downtown residents and visitors.  The Sales Tax Rebate incentive would allow for the owner to continue reinvestment in her business and help maintain occupancy of a 1,350 square foot Downtown retail space.

RECOMMENDATION

It is recommended that the Village Board of Trustees approve a Resolution Approving a Sales Tax Rebate Agreement for Le Obsession located at 16-18 S. Dunton Avenue.