Elk Grove City Council approves $500,00 car dealer advertising subsidy
The Elk Grove City Council approved a $500,000 advertising subsidy for a company planning to reopen the abandoned Ford Motor dealership in t...
https://www.elkgrovenews.net/2010/11/elk-grove-city-council-approves-50000.html
The Elk Grove City Council approved a $500,000 advertising subsidy for a company planning to reopen the abandoned Ford Motor dealership in the Elk Grove Auto Mall.
Citing the significant tax revenue contribution the auto mall makes to the city's general fund, the council voted 4-0 to approved the request. (Vice Mayor Steve Detrick was not present.)
Prior to approving the subsidy, Council Member Gary Davis suggested that any advertisement subsidy to promote the new Elk Grove Ford also promote the auto mall in general.
In her report on the matter, city manager Laura Gill said that only Elk Grove Auto Mall dealer, who was not identified, did not support the proposed subsidy. There were no speakers in opposition to the subsidy during the public comment portion on the matter.
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I find a bright spot in this proposed reopening of a Ford dealership, but also am somewhat troubled at our city thinking we need to offer a $500,000.00 incentive for businesses to locate in Elk Grove. On August 1, 2009 we spent $275,000.00 on a stimulus package at the automall. On the August 26, 2009 EGCC Agenda there was another stimulus package for $500,000.00 for a proposed Hyundai dealership which of course didn't happen and was pulled!
How can such a small subsidy help revitalize the automall? Are we being assured that when this money is spent on advertising, etc. there is a tagline "at the EG Automall"? Do you have any idea what it costs to open a dealership......this $500,000.00 ... is "petty cash". There are many other options available to entice businesses to EG....JMO, but I think this is "Bad Business Practices"!!
This suggests that automobile dependent sprawl ought to also garner subsidized council dollars, too, due to the "significant tax revenue contribution that property taxes makes to the city's general fund."
With a council identical to the council that governed over the biggest sprawl boom in history, expect nothing new.
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