Thorntons will receive a tax rebate from the city of Elgin to help cover the $547,000 cost for intersection improvements needed for a new $10 million gas station it plans to build next year at Route 20 and Lambert Lane.
The Elgin City Council has tentatively agreed to return local motor fuel taxes to the company to reimburse it for the work involved in adding high-visibility crosswalks, building a protected left-turn signal for vehicles going from Route 20 to Lambert and installing pedestrian signal poles.
Under the deal, Thorntons will receive 50% of the fuel taxes generated by the business, which will include 20 car fuel stations, four semi-truck fuel stations and a 5,600-square-foot convenience store, for five years or until the cost is recovered, whichever occurs first, Marc Mylott, director of community development, said at the council’s Wednesday meeting.
“Thorntons pays for and builds the improvements up front, and the city rebates back to them a portion of the revenue they generate until they recover their costs,” Mylott said. “If they don’t generate enough revenue to recoup their costs in five years, the city doesn’t cover the outstanding balance. It’s win-win.”
The company estimates it will generate about $230,000 annually in local motor vehicle fuel tax from gas sales and more than $200,000 from sales tax from its convenience store.
A final vote on the agreement is expected at the council’s first meeting in September.
“The city is thrilled to partner with Thorntons on this long-needed intersection improvement that will benefit everyone, not just Thorntons,” Mylott said.
The Illinois Department of Transportation, which has long-term plans to improve roadways in the area, labels Route 20 and Lambert Road a “critical safety tier intersection” based on the number of accidents at the site. An estimated 40,000 vehicles use that portion of Route 20 daily.
IDOT is working on an engineering and environmental study for improvements needed on Route 20 and Shales Parkway, including Lambert Lane, which should be done by year’s end.
Construction, estimated in 2023 to cost between $110 million and $115 million, could take up to six years, according to city documents. IDOT has not secured funding for the project.
Thorntons first approached the city about annexing and developing the 8.32-acre property at the northeast corner of Route 20 and Lambert in 2022. It closed on the land purchase last year, and a groundbreaking is expected in spring 2025, documents said.
Gloria Casas is a freelance reporter for The Courier-News.