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Montgomery approves five-year sales-tax rebate to keep Walgreens locations open
Summary
The Village Board approved Ordinance 21-37, a five-year sales-tax rebate agreement with Walgreens that will pay the company $13,000 per year if all three Montgomery locations remain open; the measure passed 4-2 amid questions about disclosure and recapture language.
The Village of Montgomery on Monday approved Ordinance 21-37, authorizing a sales-tax rebate agreement with Walgreens that will rebate $13,000 annually for five years if the company keeps all three Montgomery stores open.
Village Manager Burke told trustees Walgreens is undergoing a national restructuring and notified Montgomery that the Ogden Avenue location was at risk of closing. "They'll have completed their restructuring in the next 3 to 5 years," Burke said, and the rebate ties the payments to the condition that all three local stores remain open during that period.
Trustees pressed staff for details about how the village would recoup funds if a location closed during the agreement. Trustee Baumann asked whether the village could "call back the money that we gave them already" if a store closed. Manager Burke indicated there is recoupment language in the agreement but did not read the clause aloud at the meeting.
Trustees also asked about the amount of tax revenue generated by the Ogden Avenue store in prior years. Burke and other staff responded that individual business tax receipts are confidential and "we can't disclose that" number publicly.
After discussion the board moved to approve the ordinance. A roll-call vote produced four "yes" votes and two "no" votes: Trustee Maraszek — yes; Trustee Berzasca — no; Trustee Geier — yes; Trustee Sperling — yes; Trustee Baumann — no; Trustee Youngerman — yes. The motion carried 4-2.
The ordinance is intended to keep a neighborhood pharmacy and associated retail services in place while Walgreens completes a national restructuring that has included announced closures. The agreement's condition that all three Montgomery locations remain open for five years was described in the meeting as the protection the village sought in exchange for the rebate.
The board did not release the full text of the rebate agreement on the dais; staff said details — including any recapture procedure and the precise legal language — are in the contract documents.
Trustees framed the decision as weighing a modest financial incentive against the local service loss that could follow a store closure. Trustee Youngerman said he preferred "80% of something than 100% of nothing," while Trustee Baumann expressed reservations about providing an incentive to a large national chain when village funds could be used for small local projects.
The ordinance passage, 4-2, establishes the payment schedule and the reported condition that Walgreens keep all three Montgomery locations open for five years. Manager Burke said the company is in a multi-year restructuring and the five-year term aligns with that timeline.
The village did not provide a line-item breakdown of the rebate contract during the meeting; officials said they would rely on the contract language for enforcement and recoupment details.
