On October 25th, the Village Board approved a TIF Redevelopment Agreement (RDA) with Kensington Development Partners for the development of the Entertainment District. Kensington is serving as the developer and will manage the construction of the project. Phase 1 of the project is estimated to be $30,724,096 as outlined in the RDA that includes a 900-space parking garage, digital signage for the Entertainment District, and sitework for future restaurants and entertainment users.
Within the RDA is a Purchase and Sales Agreement that is attached for Andretti Indoor Karting and Games (AIKG). AIKG would pay the Village $6,000,000 for their development ready pad site and invest nearly $20 million to construct their 80,000+ square foot facility. A construction schedule with targets have been agreed upon by the parties requiring pad delivered sites and utilities to facilitate a 2024 opening.
AIKG will deposit $500,000 into an escrow account within 5 days of signing the Purchase and Sales Agreement (effective date). A survey, title commitment, and environmental site assessments will be delivered to AIKG within 30 days of the effective date. AIKG will have 120 days of due diligence as it prepares its plans for development review. Staff will work with Kensington Development Partners and AIKG to go through the development review process within 240 days of the effective date. The closing date will occur 30 days after the expiration of the approvals period. AIKG needs to submit for permits within 90 days of the Village Board approval of the development.
TIF Projections from SB Friedman shows the Andretti Indoor Karting and Games development on its own would generate $12.5 million in TIF increment ($7 million in Net Present Value). The Village of Schaumburg would also benefit from new amusement tax, sales tax, and food and beverage tax revenue from Andretti Indoor Karting and Games that Kensington estimates to be $955,000 annually based on $16,000,000 in annual sales.