Gas/Travel Center Wins Big City Tax Break

The developer of a $5.5 million gas station complex at Route 53 and Laraway Road, featuring a Dunkin' Donuts, Pop's Italian Beef, convenience store and liquor store, will receive a 20-year tax incentive from the city of Joliet.

The deal for the Route 66 Food N Fun Travel Center was approved Tuesday night by the Joliet City Council. It calls for a graduated tax break in which the city will rebate 100 percent of the 1.75 percent home rule sales tax on motor fuel in the first year that will be gradually reduced to 40 percent in the last four years.

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However, some of that money will be recouped with the addition of a special 1 percent sales tax on retail items sold at the center's stores.

"This is a key commercial corner. It truly is a gateway to a major development opportunity for us," City Manager Tom Thanas told the council. "Looking long-term at this, it's really the first major project in the ground in this part of town."

Its proximity to Chicagoland Speedway, the Autobahn Country Club and the CenterPoint Intermodal Center makes it a prime location that could spur future growth, Thanas said.

The development had been originally planned for the mid-2000s but fell victim to the 2008 recession.

"This is the first project that's come along with financing, ready to construct," Thanas said, "and the goal is to be in the ground very soon, as soon as the project is approved (by the council) and building permits issued."

The 2.6-acre development will feature a "Route 66" theme designed to appeal to those driving the historic road, which follows Route 53 through Joliet.

The 5,700-square-foot building will include a drive-through Dunkin' Donuts, a Pop's Italian Beef counter with seating for 25 and two stores selling convenience items and alcohol. There will be five islands selling gasoline and five for diesel fuel. All told, 40 jobs will be created.

The tax break will help the gas station portion of the business be competitive with stations located in unincorporated Will County, which does not assess a home rule motor fuel tax, Thanas said.

He added that the council need not worry that the deal will set a precendent.

"We will not have to give a 20-year abatement to everybody who comes along," Thanas said. "People understand in this business that sometimes the first one in gets the best deal and if the economy turns and gets roaring again, the use of incentives reduces."

Although At-Large Councilwoman Jan Quillman expressed frustration that an estimated dollar amount for the total tax abatement could not be cited, she and the rest of the council approved the package.

Said District 3 Councilman John Gerl: "I think this is a great project for the area. I'm glad to finally see someone willing to invest out there."