CarMax plans to put a dealership at Route 59 and Theodore Street.
The nation’s largest retailer of used vehicles would go on the northeast corner.
The Joliet City Council Economic Development Committee on Tuesday will consider an economic incentive package similar to what was granted to Hawk Auto for new Mazda and Subaru dealerships it is building at Route 59 and Caton Farm Road.
The city would rebate $3.7 million in property taxes over 15 years, according to a staff memo. CarMax also wants Joliet to put a $10,000 cap on fees charged for reviewing plans and issuing building permits.
The dealership is expected to generate nearly $6.3 million in sales taxes during those 15 years.
About $2.6 million of those taxes would go to the city, according to staff.
The dealership is expected to generate an additional $65,000 to $95,000 in new property taxes annually. It would employ 20 to 30 people.
CarMax would use 9 acres of the 40-acre site.
Construction is expected to start in June 2021 with the dealership opening in June 2022.
The cost of the project is estimated at between $10 million and $11 million.
The cost of the project, plus the likely siphoning off of business from CarMax dealerships in Naperville and Tinley Park, were cited as reasons for the incentives.
The Joliet dealership would be smaller than the locations in Naperville and Tinley Park, said Councilman Larry Hug, chairman of the Economic Development Committee.