The city of Elmhurst sued Lucky Motors Inc. on Feb. 11, alleging the car dealership violated the terms of a 2010 sales tax rebate agreement.
As part of the 10-year agreement, Lucky Motors was given a 50 percent rebate on sales taxes that the city received from the sales of used vehicles over the Internet or at the dealership's 817 N. Church Road location.
The agreement capped the maximum amount at $50,000 yearly or a total payout of $500,000 over the 10-year period. Elmhurst typically uses such agreements to boast economic development. The city has entered into similar agreements with other dealerships.
The Lucky Motors agreement required 100 percent repayment of rebates if the business relocated with the first five years of the agreement.
City officials said Lucky Motors relocated its business outside of the city in September.
The city's attorney sent a letter to Lucky Motors in October requesting the dealership repay $144,635 in rebates, but Lucky Motors has yet to pay the city. The city of Elmhurst office is at 209 N. York St.
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