TO: Mayor Thomas J. Weisner
FROM: Bill Wiet, Chief Development Officer
Development Services Department
DATE: August 5, 2013
SUBJECT: title
A Resolution Authorizing The Execution Of A Sales Tax Rebate Agreement Between The City Of Aurora And Napleton Aurora Imports, Inc. - (NA28/2-12.357-AG - BW/SP - Ward 10)
body
PURPOSE:
Attached is a resolution authorizing the execution of a sales tax rebate agreement for Napleton Aurora Imports, Inc. Pursuant to the attachment Napleton Aurora Imports Inc. (Napleton Hyundai, 4333 Ogden Avenue) will receive up to $2,000,000 (funding cap) of the sales tax generated by the automobile dealership, as an annual rebate over ten (10) years, for the acquisition and renovation of the existing automobile dealership at this location.
BACKGROUND:
Napleton Aurora imports, Inc. acquired the existing automobile dealership in 2012 for more than $12 million and Napleton intends to invest another $4+ million ($4,153,217.31) into improving the dealership by upgrading the façade of the building, constructing a vault over the existing stormwater detention area to allow for additional onsite parking, remodeling the interior of the building including sales floor and service area, installing new signage, and installing upgraded lighting and equipment in the service area. The agreement will guarantee that Napleton will occupy and operate the dealership at this location for a minimum of ten (10) years. Staffing levels, will also be maintained and Napleton has agreed to no less than sixty-four (64) full time employees at the dealership during the term of the agreement.
DISCUSSION:
Napleton shall receive in rebate 50% of the sales tax generated by the automobile dealership above an established base line amount of $360,000. This baseline amount was established in part by the approximate annual sales from the former dealership at this location. The rebate period will begin after completion of the renovations as further outlined in the agreement. This means that the City will receive the first $360,000 in annual state sales taxes before the 50/50 split takes affect. This essentially anticipates Napleton Hyundai increasing sales substantially after renovations in order to reach the cap. This rebate will be payed by the City of Aurora annually for a term of ten (10) years, or until the cap has been reached, based on the the required sales tax information supplied by Napleton to the City.
IMPACT STATEMENT:
The development made possible through the approval of this Agreement will have a positive impact on the economic health of the City of Aurora including but not limited to the following:
- That the redevelopment of the Property is expected to retain job opportunities within the City.
- That the redevelopment of the Property will retain an new automobile dealership in the City
- That the redevelopment will enhance the tax base of the City.
- That this Agreement is entered into with the best interest of the City in mind.
RECOMMENDATIONS:
Staff recommends approval of the resolution authorizing the execution of a Sales Tax Rebate Agreement with Napleton Aurora Imports, Inc. .
ATTACHMENTS
Draft Resolution
Agreement
Draft Concept Plans
cc: Alderman O'Connor, Chairman
Alderman Schuler
Alderman Mervine
Alderman Peters, Alternate