CENTERVILLE -- The city is helping a business because it has been deemed a community asset.
As part of a new participation agreement with Centerville, Hadley Auto Company owns approximately 3.94 acres of real property and a building at the Land Rover Dealership at 155 S. Frontage Road. The company wants to expand beyond its original project in two phases.
"The city will not be losing out," said City Manager Steve Thacker. "We are keeping the present business, and if they meet their benchmarks, the sales tax will offset what we give them."
Besides, he added, if the city had not enticed the company, there is a chance it could have moved its facility elsewhere along the Wasatch Front.
"We wanted to convince them to stay," he said.
The agreement details the first phase of the company's expansion of the existing building, while the second phase involves the construction of an additional building that will be used as a showroom for automobile sales and/or service.
"Land Rover Centerville Inc. has contracted with SAHARA Construction. We expect to begin construction on the first phase by mid-October, 2011, with a completion date of March 2012," said Kandice Kennedy, marketing director at Land Rover Centerville Inc.
"The expansion will more than double the size of our current location and allow for future growth of our sales, parts and service departments. Phase Two of the expansion is still under consideration and to be determined with our high-line auto manufacturers (Fisker, Aston Martin, Spyker, Bentley)."
The estimated value of the improvements in Phase One is $1.36 million.
That value includes the expansion of the existing building with an additional 10,000 square feet and site improvements, four to six service bays, new administrative offices, expanded parts and service capacities and a 0.25-acre used-car area.
The plan is for the company to receive 100 percent of available tax increment from the current or original project development until the project concludes in 2021. Also, the company will receive 100 percent of available tax increment from expansion of the new proposed facility until 2021.
The Centerville redevelopment agency and the city will require the business to reach two benchmarks to receive the incentive each year.
They require that construction of Phase One be completed no later than Dec. 31, 2012. The business must then complete phase two construction no later than 2014 and maintain a minimum gross taxable sales amount of $18 million annually from the project.
Thacker said this agreement and the business expansion will be good for residents, especially because everything being given will be offset by future sales tax.