In today’s Daily Herald, reporter Mick Zawislak reported that Russo Power Equipment would soon be occupying the bankrupt and closed Edward Hines Lumber Company at Rt. 120 and Hainesville Rd. The 30,000 S.F. building along with about 10 acres of land sold for half the asking price of $4.3 million dollars.
Russo Power Equipment has several other facilities supplying power equipment to landscaping companies and contractors. They should only compete with Grower Equipment and Supply when it comes to snow blowers, according to Mayor Linda Soto. The Mayor also stated that the Village should see a boost in sales tax revenue. This has been a sore topic when it comes to revenue taxes paid to the Village by Hines Lumber. Former Mayor George Benjamin and his administration voted to give Hines a sweetheart tax incentive for a 10 year period. When that expired the Village still received little revenue because Hines Lumber figured out a loop hole and did their contractor billing (the bulk of their business) out of their corporate office in Buffalo Grove, thus paying revenue to Buffalo Grove.
The minutes from the September 14th Regular Board meeting show that “The company is hopeful they can do $5 million in sales a year. They did approach the Mayor asking about a tax rebate. She stated that the Board would entertain that if they were willing to pursue certain improvements such as the municipal road extension or the road through to the school. They are not ready to do that now but maybe with a phase 2. They will not be using the entire property. The Village has encouraged them to develop a portion as a fast food restaurant or restaurant of some sort.”