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Highland Park staff outline proposed sales‑tax rebate for McGrath Kia at 250 Skokie Valley Road
Summary
City staff described a proposed sales tax rebate for McGrath Kia that would return incremental city sales tax above a $500,000 baseline, recommend a 50/50 revenue split, and cap payouts at $2 million over a term of up to 12 years; staff will return a formal agreement to a future agenda.
City staff presented details of a proposed sales tax rebate agreement for WKN Automotive Inc., doing business as McGrath Kia, at 250 Skokie Valley Road during the Committee of the Whole meeting on Jan. 12, 2026. Staff asked council for feedback on rebate maximums, revenue splits and the draft term before returning a formal agreement for consideration.
Staff said the city’s baseline for McGrath was set at $500,000 (the city portion of 1% sales tax). Staff estimated roughly $300,000 could be returned to the applicant under the projected scenario, and recommended a 50/50 revenue split on incremental sales tax above the CPI‑adjusted baseline. Staff proposed a maximum…
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