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The property, at the northeast corner of Woodlawn Road and Connolley
Road, requires new roads, sewer, storm water system, water and
utilities, some of which will be in place for future building in the
area. The agreement is to rebate costs that the company would spend
on infrastructure that leads to and from the property, much of which
would also serve other undeveloped land to the west.
A large display lot for almost 200 cars would sit on the front
portion of the property, and the showroom, offices and service
center would be located at the rear of the property.
Chris Graue came before the council two weeks ago to sort out
what the council could approve. Graue was there again Monday night
with a modified contract, in hopes of keeping the project moving.
The company intends to break ground as soon as the final plat is
complete and the council approves it.
The initial infrastructure costs were estimated at $750,000. The
Lincoln Planning Commission asked that additional measures be taken
to channel storm water toward a retention pond. This involved
extending Connolley Road another 600 feet along the west side, all
the way to the rear of the property. The $87,230 cost was added into
the agreement.
The city will continue to receive sales tax revenue from the
business in the same amount as it is currently getting: $125,000 per
year. This is 1 percent of the $1.25 million in sales revenue
generated by the business. This figure was revised from the original
agreement and is based on a current three-year average.
Graue will receive any increase in sales taxes over $125,000, up
to $175,000.
The city will get any sales taxes above the $175,000.
The cap was added at the request of Alderman Buzz Busby. This
allows as much as $50,000 per year to return to the business to pay
down the infrastructure costs that they have funded. The agreement
to pay down the $837,230 infrastructure costs is set to be in effect
up to 20 years.
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City attorney Bill Bates pointed out that the 0.5 percent sales tax
that is used for infrastructure is not affected by this agreement
and that revenue will still come to the city. Graue said in his
first presentation that they consulted with GM and the car
manufacturers and everyone told them to anticipate a 30 percent
increase in business, but that they chose to use 25 percent as a
conservative figure to use in their calculations.
Graue also said that there would also be an increase in payroll.
They currently have 37 people on staff. He anticipates sales and
service personnel additions would increase the staff to 45.
Few comments were made after highlights of the amended agreement
were read Monday night.
Busby felt the costs were exorbitant.
Aldermen Marty Neitzel and Verl Prather recalled recent past
agreements that have been made for other like businesses to develop
in that same area, what those infrastructure costs were and what
those businesses were contributing to the tax base.
Both Coy's and Xamis had $500,000 agreements for infrastructure
costs. Neitzel and Prather said that the Graue figures were in line
with those.
Prather said that business volumes and what might be returned to
the city should be taken into consideration. This business has a
higher sales tax return than other like businesses had when they
received similar agreements.
He also felt that it should be looked at that, "This is a family
business that's been here for 53 years; they're a good partner with
the community, and they are involved in almost every aspect of the
community."
A vote by the full council to accept the agreement pending
approval of the final plat yielded eight "yeses," one present by
Melody Anderson and one "no," cast by Busby. A present vote is
neither for nor against, but indicates a possible conflict of
interest.
Graue thanked the council and promised to make wise use of the
investment.
[Jan
Youngquist] |
