Doug Smith Auto sales tax incentive
Tier-1 auto dealer incentive returning a share of city sales tax above a $775,000 annual baseline, capped at $2 million or the cost of qualified capital improvements, for up to 10 years, with a 7-year stay covenant. Approved 4-1 Aug. 24, 2021, over Councilmember Rob Shelton's objection that the city lacked an incentive policy.
- Where it stands
- Approved
- Type
- Development agreement
- Location
- 523 W. Main St. / Roosevelt Avenue
- Size
- 14.18 acres
- Applicant
- Doug Smith Auto
Every hearing and vote
August 24, 2021 · City Council
Tier-1 auto sales tax incentive agreement with Doug Smith Auto
Approved · 4-1
Performance-based agreement reimbursing Doug Smith Auto (523 W. Main St., about 14.18 acres) a share of the city's sales tax above a $775,000 annual baseline (50% of the next $100,000, 65% of the next $100,000, 80% above), capped at $2 million or the cost of qualified improvements, for up to 10 years starting fiscal 2021. The dealer must stay seven years afterward or repay. Improvements are land acquisition and dealership expansion along Roosevelt Avenue; at Councilmember Shelton's urging the motion was amended to define them as capital improvements on that land. Shelton voted no, saying the city lacks an incentive policy, had rejected a similar request from Ken Garff, runs a structural deficit of about 0.6% a year, and learned only minutes before the meeting that the dealer might leave. Councilmembers Taylor, Hunter and Carroll said losing the dealer would be worse.
- Cap: $2,000,000 or cost of qualified improvements
- Baseline retained by city: $775,000/yr
- Term: 10 years from FY2021 plus 7-year stay covenant
- Earlier: council approved a similar deal for National GMC and denied Ken Garff