City of Brighton - File #: ID-297-19

• File #: ID-297-19
• Version: 1
• Type: Resolution
• Status: Agenda Ready
• File created: 9/20/2019
• In control: City Council
• On agenda: 10/1/2019
• Title: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRIGHTON, COLORADO, APPROVING CERTAIN ECONOMIC INCENTIVES TO JOHNSON AUTO PLAZA, INC. IN THE FORM OF A 50 PERCENT USE TAX REBATE AND A REBATE OF SALES TAX COLLECTED IN AN AMOUNT NOT TO EXCEED $338,000.00; SETTING FORTH THE REQUISITE FINDINGS RECOGNIZING THE VALID PUBLIC PURPOSE AND COGNIZABLE BENEFIT JUSTIFICATIONS FOR SUCH ECONOMIC INCENTIVES; APPROVING THE INCENTIVE AGREEMENT; AND AUTHORIZING THE MAYOR TO EXECUTE SAID AGREEMENT ON BEHALF OF THE CITY AND THE CITY CLERK TO ATTEST THERETO

Date	Ver.	Action By	Action	Result
10/1/2019	1	City Council

City of Brighton
Department of Economic Development
Reference: Johnson Auto Plaza Incentive Agreement

To: Mayor Kenneth J. Kreutzer and Members of City Council
Through: Marv Falconburg, Acting City Manager
Prepared By: Michael Martinez, Director of Economic Development
Date Prepared: September 20, 2019
PURPOSE
To consider a request by Johnson Auto Plaza for certain economic incentives in an amount not to exceed $338,000.00.

STRATEGIC FOCUS AREA

Strong Local Employment Opportunities

BACKGROUND
Johnson Auto Plaza is considering constructing a new 44,000 square foot parts and service facility as an addition to their current location on the southwest corner of 136th and Highway 85. This new service center will allow Johnson Auto Plaza to service a significant amount of vehicles in addition to what they are currently serving, which will generate new sales tax to the City of Brighton. Further, the addition of the new facility will add an additional 25 employees to the company, most of which will be certified service technicians. Johnson Auto Plaza has long been an excellent Brighton business with a good record of community stewardship and responsibility.

Johnsons Auto Plaza is uniquely situated at the southern border of our community, and is currently not served by water or sanitary sewer services by and from the City of Brighton. Given this unique circumstance, along with the significant capital investment that Johnson Auto Plaza has made in our community over the past 20+ years, it is recommended that an incentive of 50% of the use tax paid on construction material for the new facility be reimbursed back to Johnsons Auto Plaza which is currently estimated to be a rebate of $88,125.00 as well as an additional performance-based sales tax rebate of any amount in excess of $512,000.00 paid by Johnson Auto Plaza to the City for sales within the City for a total amount not to exceed $338,000.00 or 5 years. Johnson Auto Plaza is a top-10 sales tax producer for ...