Edward Don to Keep 75% Sales Tax for First Five Years

Woodridge stands to gain hundreds of thousands of dollars of sales and utility tax revenue from Edward Don & Company as the foodservice equipment distributor moves its corporate headquarters and distribution facility to Woodward Avenue. 

But to get the company here, the village must provide rebates for a portion of the sales and utility tax Edward Don & Company will pay, according to village officials. 

The will vote Thursday night whether to approve an economic incentive agreement with Edward Don & Company which would provide the rebate of a portion of sales tax revenues for 15 years and a rebate of utility tax revenues up to a maximum of $1 million. 

Pursuant to the agreement, Edward Don's lease will begin on July 1, 2012, and expire on June 30, 2032. 

Of the sales tax Edward Don must pay as required by law, the village would retain just 25 percent for the first five sales tax years. Edward Don would keep the rest. 

After the first five sales tax years, the village and Edward Don each get 50 percent of the sales tax. 

The 75 percent number is probably the highest the village has offered a business, according to Emily Rodman, senior planner for the village of Woodridge. 

While the village is offering 75 percent of sales tax back upfront, the company will keep 25 percent of its sales tax over the next 30 years, Rodman said. 

"The village anticipates that over the next 30 years, Edward Don will generate approximately $39 million in sales tax, utility tax and property tax revenue," Senior Planner Emily Rodman wrote in an e-mail.

"Of that $39 million, the village anticipates it will rebate Edward Don approximately $10 million, or 25 percent of the revenues generated."

The village will also give 100 percent of the utility tax generated by Edward Don back to the company up to $1 million. 

The village has entered into such agreements in the past, according to village documents, for potentially large employers in the community that will generate significant tax revenue and commit to staying in Woodridge long-term. 

These agreements have ranged from 3 to 20 years. 

Edward Don & Company would receive an additional rebate of a portion of sales tax revenue for up to 5 years if the company chooses to extend its Woodridge lease for an additional 10 years, according to the agreement. 

Edward Don & Company's move to Woodridge would not be possible without this agreement, according to village officials.