What’s being built in the property across from Auffenberg in Shiloh? Here’s what we know

Work has begun on a new home for the Auffenberg Hyundai dealership, across the road from the Auffenberg Dealer Group’s new auto mall in Shiloh.

Village Mayor Bob Weilmuenster has confirmed a Hyundai dealership is in the early stages of being built there. The property is owned by Jamie Auffenberg, whose new auto mall is located on more than 30 acres across the way at Frank Scott Parkway and Fortune Boulevard in Shiloh.

“Some ground has been moved and some rock is there. I just had a meeting this morning with Mr. Auffenberg,” Weilmuenster said Thursday. “Hyundai is running a bit behind schedule because of complications with material shortages.”

Weilmuenster said the current Hyundai dealership on Central Park Drive in O’Fallon will close when the new facility across in Shiloh is ready.

“That’s my understanding,” he said.

Weilmuenster said Hyundai hopes to be in the new location by July 2023, while noting the benefits of having the dealership at that destination, specifically for Shiloh School District 85.

“It’s going to be great for the village for many different facets,” he said. “Not just because of having another dealership and the revenue that comes with it, but this is a really big win for the school districts ... to have revenue to support those school districts. The real estate property taxes ... most of it goes to the schools. So that property tax will be extremely beneficial for the Shiloh schools.”

Weilmuenster explained for the first six months of 2022, Mike Auffenberg — who runs the new auto mall — said the business has generated about $170 million in sales. Weilmuenster projects that figure to double for an entire year while also noting that dollar amount is down approximately 30% from previous years.

“It all has to do with the availability of vehicles,” he said.

Regarding tax revenue for the village, Weilmuenster said it’s a bit too early to project.

“At this point, I do not know the tax revenue. Some of that $170 million is labor and sales,” he said. “We would know probably within three months of them coming online (in July) and have a good idea what anticipated revenues we’re looking at.”

As far as projections from the new Hyundai dealership, Weilmuenster said, “That’s down the road a bit.”

Three Springs revitalization?

Additionally, Weilmuenster said he expects Hyundai’s presence to attract more interest for the Three Springs Project to be developed. This is located at the corner of Frank Scott Parkway West and Green Mount Road in Shiloh.

Paul McKee, a St. Louis developer, purchased the Three Springs property about 20 years ago to develop, Weilmuenster noted. He added the development never materialized and that McKee went bankrupt before the Dierberg’s group bought the land out of bankruptcy about five years ago.

The land is 120-140 acres, Weilmuenster estimated.

“There has not been any activity in that 100-acre empty field. With box stores closing across the country it hasn’t been attractive to build a new store of any type of magnitude for that reason,” he said. “But Auffenberg and Hyundai having activity around it and in that vicinity, we feel the interest will be greater for other development to be spurred in that area.”

Auffenberg sets ribbon-cutting

As far as Auffenberg’s new auto mall in Shiloh, Weilmuenster is ecstatic. The new mall opened in early July and has a ribbon cutting planned for 11 a.m. Wednesday, July 20.

Additional dealerships located in the mall include Auffenberg Chrysler Dodge Jeep, Auffenberg Nissan, Auffenberg Kia, Auffenberg Mazda and Auffenberg Volkswagon.

“I remember years ago when the property was purchased, I was there at that groundbreaking,” he said. “So everything is starting to come together. We had the property available. Auffenberg Auto Mall needed more room and it’s very exciting they chose Shiloh for their destination long term.”