04-25-2012, 10:50 AM | #1 |
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City Council approves $750K Tax Incentive for new Chrysler Dealership
News reports indicate the Monrovia City Council has approved an incentive package that will provide Sierra Autocars with a $750,000 incentive for opening a new Chrysler, Jeep, Dodge, Ram dealership. The terms call for the city to rebate 50% of the sales tax revenue generated by the new dealership, up to $75,000 per year, for 10 years.
Here's a link to the news report - click here This is a pro-dealer website and I'm a pro-dealer guy but I continue to be amazed to see the public sector provide incentives to private businesses. In the case of Sierra AutoCar, the location they're opening is one that they closed several years ago - in fact, it's currently operational as a used car store. That means the Dealer Group is getting $750,000 just to add a new car franchise to the location. I guess it's a great deal if you can negotiate it but I'm not sure I'd want to be a neighboring dealer and have to compete against it. (Granted, $75,000/year isn't a huge incentive in the entirety of running a dealership.) On a side note, I read that Sierra AutoCar already has a Fiat Franchise but I don't think the group has any other Chrysler stores. I wonder if this is the first time a Fiat Dealer has expanded by adding CJDR franchises? |
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