City of Vandalia approves two development agreements at Monday Special Meeting

The Vandalia City Council at a special meeting on Monday evening approved two development agreements—one of which was originally approved in the fall of 2024.

Back in September of last year, the Vandalia City Council approved a 1% sales tax override to be paid to Developer Mike Wehrle on property on Veteran’s Avenue between Los Amigos and O’Reilly Auto Parts.  Dominos Pizza developers have now purchased that property and will be moving forward with bringing the restaurant to town, with the possibility of a second restaurant on that same property.  Back in September, the City Council approved the agreement with Wehrle that would pay him a 1% sales tax override on the gross sales for the initial tenant on the property for 23 years.  Back in September, the matter was approve by the City Council by a vote of 6 to 1 with Alderman Bret Brosman voting No.  On Monday–with Aldermen Bob Bowen and Kenny Lewey absent for the meeting–the matter was approved by a vote of 5 to 1 with Brosman again voting No.  City Attorney Ryan Connor says this is very close to the same agreement that was approved back in September.

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A second development agreement was then approved on Monday.  Wehrle says there is a Travel Center that is looking to locate on the property of the former Vandalia Wal-Mart at Veteran’s & Randolph.  Wehrle said the Travel Center is a family owned company based in Atlanta and this would be their first location in Illinois.  And, Wehrle was looking to get in place the same type of agreement as he has on the other property—with the 1% sales tax override on the gross sales for a period of 23 years.  The second development agreement was approved by the City Council by a 4 to 2 vote with Brosman and Mike Hobler voting No.  City Attorney Ryan Connor says this agreement is very similar to the first one.

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And, while the City of Vandalia will be giving the 1% sales tax override to the developer on this, he says the city will still get benefits from this, such as with higher property tax payment with the increased property value.

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The agreements are not limited by amount, just time as they will both go for 23 years after sales tax start to be generated on the properties.