Oswego approves sales‑tax sharing incentive to bring HomeGoods to Prairie Market East

Trustees voted to authorize an economic incentive agreement to support a proposed HomeGoods tenant at Prairie Market East, following a staff presentation explaining why municipal assistance was necessary to make the deal financially viable.

Economic Development Director Kevin Lighty told the board that HomeGoods (a junior box anchor) typically pays below‑market rents, which can make standalone deals unviable. Staff recommended sharing 100% of municipal sales taxes generated by the HomeGoods store for up to 15 years or until the village has provided $1,500,000, whichever comes first. The draft agreement includes clawback provisions if the tenant closes or relocates (a replacement tenant must be found within two years or portions of the incentive must be repaid).

Lighty said staff reviewed the developer’s pro forma and found the project stalled by current construction and borrowing costs. "Even with sharing the incentive, the economic impact is considerable," he said, estimating about $144,000 a year in home‑rule sales taxes during the incentive and roughly $300,000 annually after the sharing period ends.

Trustees asked whether lower eventual construction bids would change the incentive; staff said the agreement contains no automatic readjustment for bids coming in lower, but staff performed a deep review of project budgets beforehand. Trustees also asked for a correction to an extra zero in the draft agreement (an $11,005,000 figure that should read $1,500,000); staff agreed to amend the draft.

The board approved the ordinance authorizing the execution of the economic incentive agreement, as amended, by roll call. Staff said the agreement contains clawbacks (50% repayment if no replacement tenant within three years; additional prorated repayments at years four and five) and will be monitored by the village.