Tesla Dealership Proposed For Buffalo Grove's Dundee Road TIF District

BUFFALO GROVE, IL — For over a decade, the site of a former Rohrman auto dealership has sat vacant on Dundee Road. That's all about to change with Monday night's announcement that a Tesla dealership is set to become the first project in a new Tax Increment Financing District along the corridor.

Shorewood Development Group, based in Buffalo Grove, has entered into a contract to purchase the property.

"I've looked at this project for [over] 10 years. We're thankful that we were able to stay persistent on this and find the right use, and find the right mix, to completely redevelop this property," Louis Schriber III, founder and CEO of Shorewood Development Group, said at the Buffalo Grove Village Board meeting.

According to Shorewood, the Tesla dealership will be about 50,000 square feet, with two retail tenant spaces (30-40,000 square feet) and 197 luxury residential units also in the plans for the 16-acre site at 915-945 Dundee Road.

For the car dealership, Shorewood is proposing to demolish the two existing buildings on the east side of the site and construct the new Tesla franchise and a service/repair center. The retail tenant spaces would be located on the western part of the site.

Trustee Joanne Johnson, who pointed out to Schriber that the site has been owned by various businesses over the years with no redevelopment moving forward, asked the developer for reassurance that things will be different this time around.

"We're very confident [the plan will move forward]. We've got a national relationship with Tesla. This isn't a one-off deal," Schriber said. "Our first one was in Westmont about six to seven years ago, when people thought we were crazy for doing business with this electric car company."

Schriber said Shorewood has also developed Tesla dealerships in Texas and is currently constructing one in North Carolina. He said the company has set a goal of developing between five and 10 Tesla dealerships every year.

For the Buffalo Grove project, Shorewood has partnered with Double Eagle Development, based in Chicago and St. Louis, to build the residential buildings on the south side of the site. The project would include four 4-story residential buildings, which will surround a greenspace that includes a pool and clubhouse, according to Shorewood. The buildings will contain a mix of one-bed and two-bed units with garages.

In March, the Village Board approved an inducement resolution to allow Shorewood to be reimbursed for TIF eligible expenses. According to the meeting's agenda, this resolution does not commit the Village to reimburse Shorewood, but does allow them to seek reimbursement as part of a future redevelopment agreement with the Village. Eligible reimbursements include public infrastructure, land assemblage, site preparation, studies, surveys and plans, and financing costs.

"This is an exciting project for the Village. As we enter into a new chapter of Buffalo Grove with modern development along Lake Cook [including] Northwest Community Healthcare, The Clove, and now Lazy Dog, it's really exciting to see this vitality and energy now starting to enter into the Dundee corridor," Nicole Woods, director of community development, said. "I'm sure we all share in this kind of exciting time."

Woods said it is anticipated the project will require preliminary plan approval, rezoning and a special use permit for planned development.

Next up, the development plan will be presented to the Planning and Zoning Commission to begin the public hearing process.

"My goal, and everyone's goal up here, is to make Buffalo Grove the envy of Illinois, to attract people that want to live here and attract businesses that want to invest here," Village President Eric Smith said. "Tonight is a very positive step toward that."