Elk Grove To Consider $150k Incentive for Mazda Dealership
The Elk Grove City Cuncil will consider whether or not to give a $150,000 incentive to retain a dealership at the city's auto mall when ...
https://www.elkgrovenews.net/2011/07/elk-grove-to-consider-150k-incentive.html
The Elk Grove City Cuncil will consider whether or not to give a $150,000 incentive to retain a dealership at the city's auto mall when they meet next Wednesday night.
The dealership in question, Mazda of Elk Grove, which is owned by Sacramento Motors LLC, is seeking a $150,000 cash incentive from the city and a fee deferral. In return, the dealership will commit to building a permanent dealership structure and retain seven employees and hire an additional 23 employees.
The dealership is currently housed in a modular structure and according to the staff report, has been instructed by Mazda Motor Corp. that a permanent structure is required to be constructed by 2012 or risk losing the franchise.
The staff report states that since opening in 2010, the dealership has generated $10 million in taxable revenues resulting in $100,000 in sales taxes for the city. The report also states that the dealership is expected to generate $20,000 to $50,000 in sales tax revenues.
If approved, the incentive would be used for advertising the dealership and the entire auto mall.
The dealership in question, Mazda of Elk Grove, which is owned by Sacramento Motors LLC, is seeking a $150,000 cash incentive from the city and a fee deferral. In return, the dealership will commit to building a permanent dealership structure and retain seven employees and hire an additional 23 employees.
The dealership is currently housed in a modular structure and according to the staff report, has been instructed by Mazda Motor Corp. that a permanent structure is required to be constructed by 2012 or risk losing the franchise.
The staff report states that since opening in 2010, the dealership has generated $10 million in taxable revenues resulting in $100,000 in sales taxes for the city. The report also states that the dealership is expected to generate $20,000 to $50,000 in sales tax revenues.
If approved, the incentive would be used for advertising the dealership and the entire auto mall.
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Little confused by this agenda item....says Permanent dealership be built by "early" 2012 and that the Incentive amount is to be distributed on a monthly basis for expenditures occuring during FY 2011-12. No reimbursements made after 6-30-12. If "early" 2012 should mean April, does that mean they could spend the cities hard earned $150,000.00 in three months? We just gave Ford a $500,000.00 incentive in November...how's that working out?? There are many businesses in EG that a little incentive money would make their day. Time to put a lid on incentives. JMHO
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