A sales tax incentive agreement between McHenry and the developer who built the Thornton’s gas station at Route 120 and Chapel Hill Road would need amending if a car wash is approved for adjoining land.

A concept plan presented by Club Car Wash got enough positive feedback from the McHenry City Council Monday for Mayor Wayne Jett to suggest the company come back with an official pitch, but after checking in with one alderman who was absent from the meeting. Sixth Ward Alderman Michael Koch was driving back from northern Wisconsin during Monday’s winter storm and was unable to attend.

Jett suggested Michael Leidig, from engineering firm Robert E. Lee & Associates Inc., connect with Koch individually for his opinion.

The sales tax agreement with site developer RR McHenry LLC, approved by the council in April 2020, rebated sales taxes “not to exceed $1,000,000 for the reimbursement of ‘Extraordinary Development Costs,’” according to McHenry documents. Those development costs included extending city water and sewer to the intersection and putting up a monument sign, welcoming drivers to McHenry.

The rebate agreement came with the understanding that the site would be marketed for sales-tax-generating uses in 8,400 available square feet of retail space.

Club Car Wash is pitching a proposal to build an automated, drive-through car wash, which would not generate sales tax, next to the station.

The owners have marketed the property for the past five years to retail and quick-service restaurants, “and have had no luck,” Leidig said.

Council reaction was mixed, with Alderwoman Sue Miller, 7th Ward, pointing out that a 180-unit rental townhome development is set for the opposite corner – bringing more potential users for a retail plaza there.

Developer Redwood is expected to start construction soon on the southeast corner of Chapel Hill Road and Route 120

“I don’t know if that is the highest and best use of that parcel,” Miller said, adding that with duplexes going up across the street, “I don’t know that a car wash is what they will need there.”

Fifth Ward Alderman Andy Davis said, “I am on the fence with it,” after noting that the car wash would be at one of the most visible entrances into McHenry. “I would like to hear more about it. ... I might be for it at this point.”

McHenry Director of Community Development Ross Polerecky noted that five years ago, the City Council directed staff to make car washes a conditional use. That means any facility would need to go through an approval process on a case-by-case basis.