Lindenhurst board opts to pursue clawback option after Zeigler Nissan sale to Journey Nissan; action contingent on dealer rebranding
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Summary
The board discussed a 2016 economic-incentive agreement with Zeigler Nissan and reached consensus to pursue a recapture (clawback) modification after staff concluded Zeigler violated the transfer clause when the dealership became Journey Nissan; the change is contingent on Journey Nissan agreeing to market the dealership as located in Lindenhurst.
Village staff briefed the Lindenhurst Village Board on Sept. 8, 2025, about a 2016 economic-incentive agreement with Zeigler Nissan Gurnee, LLC and potential noncompliance after the dealership was sold and now operates as Journey Nissan.
Village Administrator Clay Johnson told trustees the original agreement included three main elements: an initial escrowed rebate equal to the first $287,205 in sales-tax receipts (held for five years then returned to the dealership), a 50/50 sharing of receipted sales tax for 15 years thereafter (with a 65/35 split in Zeigler’s favor if annual gross receipts reached $50 million), and a separate $125,000 economic incentive payment from the Village. The agreement also included a clause specifying that the Agreement would become null and void if the taxpayer transferred its interest without the consent of the Corporate Authorities.
Staff said the Village was not notified of the sale; a business-application filing from Journey Nissan was received in April 2025. Administrator Johnson said he has spoken with Jason Prado, owner of Journey Nissan, and that Mr. Prado attended an in-person meeting with Johnson and Mayor Marturano. The board was told Zeigler is in violation of the Agreement because the ownership interest changed without required authorization.
Trustees discussed options that included retaining the agreement as-is, modifying it to a single FY2026 payment, recapturing specified amounts beyond the sales-tax sharing (a clawback), or terminating the agreement in full. The board reached consensus to pursue a variation of the recapture option (clawback), contingent on Journey Nissan agreeing to update all marketing materials to show the dealership’s Lindenhurst location. The record does not show a formal roll-call vote on this direction; minutes describe it as the board consensus after discussion.
One community member offered public comment expressing an opinion on the options under consideration. The meeting then moved to adjournment.