Metro-East News

Auffenberg Dealer Group to relocate to Shiloh with $40 million project

From left, Shiloh Trustee Bob Weilmuenster; Mayor Jim Vernier; Mike Auffenberg; James Auffenberg, Jr., and, Terry Johnson of Barber Murphy Group Inc., stand next to the 36 acres on Frank Scott Parkway in Shiloh where the Auffenberg Dealer Group will relocate.
From left, Shiloh Trustee Bob Weilmuenster; Mayor Jim Vernier; Mike Auffenberg; James Auffenberg, Jr., and, Terry Johnson of Barber Murphy Group Inc., stand next to the 36 acres on Frank Scott Parkway in Shiloh where the Auffenberg Dealer Group will relocate. rkirsch@bnd.com

Auffenberg Dealer Group will be relocating from O’Fallon to Shiloh with a $40 million project to develop a 36-acre lot on the corner of Frank Scott Parkway and Fortune Boulevard.

“It’s a great opportunity to grow the business moving forward over the next decade. This is not a few-year project — this is something that we think will work for us long past me, and well into the next generation and hopefully the one past that, so we look forward to growing our business at this location,” said Jamie Auffenberg Jr., president of Auffenberg Dealer Group.

The project will be reviewed by the Board of Trustees at the 7 p.m. Monday Committee at Large meeting at Shiloh Village Hall.

No timetable was given for moving the current Auffenberg Auto Mall on U.S. Highway 50 in O’Fallon.

“Auffenberg (Auto Group) has selected the village of Shiloh as home to their new auto mall due to site constraints at their current location and to manufacturers’ demands for larger and upgraded facilities,” Mayor James Vernier said.

Commercial real estate broker and consultant Terry Johnson said, “Rather than update facilities that are not owned by the Auffenberg family, we began searching for replacement sites in 2015. Sites were considered along the Interstate 64 corridor, including Fairview Heights, O’Fallon and Shiloh with requirements of a minimum of 25 acres, interstate visibility and access and, most importantly, had not been undermined by coal,” Johnson said.

The new location is near Dierbergs and Target and can be seen from Interstate 64, Vernier said.

Auffenberg’s plan to invest in extensive site work, public streets and utility extensions, and a new traffic signal on Frank Scott Parkway, among other aspects of the project.

While the property is within Tax Increment Finance District A, John Marquart, village administrator, said, “No TIF dollars will be used for this project. This is a complete game-changer for the village.”

It’s a great opportunity to grow the business moving forward over the next decade. This is not a few-year project — this is something that we think will work for us long past me, and well into the next generation and hopefully the one past that, so we look forward to growing our business at this location.

Jamie Auffenberg Jr., president of Auffenberg Dealer Group

The project will, however, receive some of the new sales tax revenue generated at the site. Without financial assistance from the village through a sales tax sharing agreement, the development project would not be possible, said Johnson, of Barber Murphy Group Inc.

“It is important to note that the village will not be advancing any funds, guaranteeing any bonds, and has no financial obligation but to rebate a portion of new sales tax dollars coming to the village from the project,” Johnson said.

The current St. Clair Auto Mall was constructed in 1989 with the final structure built in 2004. The current site is located on 22 acres that were undermined and subject to mine subsidence. The buildings and parking lots are in need of major updates as required by the individual manufacturers and franchisors. The current facilities are leased from an out-of-state company.

“As mayor, I’m proud they selected the village of Shiloh. Working with them has been a pleasure. This is a great new development for the village and continues to show that development opportunities in Shiloh are positive,” Vernier said.

Robyn L. Kirsch: 618-239-2690, @BND_RobynKirsch

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