ELGIN -- Offering a "balcony view" of Elgin's proposed 2010 budget Wednesday night, City Manager Sean Stegall hit upon developing more partnerships between the city's government and the community.

An agenda item demonstrated how complicated such arrangements can be. As such, the city agreed to advance more than $500,000 to Randall 90 LLC in the hopes of bringing a second car dealer to the Randall Rose Auto Mall on Randall Road just north of I-90.

Attorney Peter Bazos said that money will be used to help square a difference between what a bank wants to loan and what the potential buyer -- the McGraths -- are willing to pay. Earlier this fall, McGrath opened the first spot at the mall, a Honda dealership.

The money the city is advancing is part of a complicated 2007 agreement that allowed Randall LLC, the developer, to recoup up to $6 million of the $8 million in infrastructure work needed to create the mall, Bazos said.

The $500,000 is part of $3.5 million Randall LLC would get from riverboat casino taxes paid to Elgin once a third mall dealership opens, Bazos said. Bazos told the council that if things go through for McGrath, the next car lot there would not open for at least 14 months. Bazos said McGrath is projecting $65 million in sales during its first year at the new location, which would bring Elgin $650,000 in retail sales taxes.

Councilman Dave Kaptain wanted the city to lend the developer the money interest-free for the first year and then at the bond market interest rate for the remainder of the loan.

But he couldn't find enough votes to impose that condition Wednesday night.