Toyota dealership awarded $3.6 M incentive
July 21, 2005
Carson City has partnered with Dick Campagni’s Carson City Toyota, and other auto dealers are hankering to create similar partnerships, Supervisor Richard Staub said Thursday.
The board of supervisors unanimously approved a $3.6 million redevelopment incentive for the Carson City auto dealer to purchase six acres on South Carson Street to build a new Toyota dealership. In return, he must commit to stay in Carson City for up to 15 years and grow his business.
Campagni, who owns four dealerships in the city, said he is excited to bring a new Toyota store to Carson City. He also plans to move the Carson City Mazda and Hyundai dealership to 3659 S. Carson St., where the Toyota dealership is now.
“Toyota says across the nation whenever a dealer builds a new store, that increases the business by between 25 and 40 percent,” he said at the Thursday afternoon meeting.
The 5.86-acre vacant lot, south of the Wells Fargo near auto row, is twice the size of Campagni’s current Toyota dealership. He said after the meeting that the sales and office building will be about 40,000 square feet. He said the estimated cost of construction is not yet available.
Staub said he’s received calls from two other dealership owners, expressing interest on “how they can get on the boat.
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“Hopefully this is the first of several other agreements.”
Joe McCarthy, Carson City economic development and redevelopment manager, said Campagni was the first auto dealer to apply for the auto-row incentive program, which was approved by the supervisors on March 17 to secure and stimulate auto sales investment along South Carson Street.
McCarthy said Carson City Toyota would receive $1.8 million when it closes escrow on Aug. 10. Then another $1.8 million in city redevelopment funds would be transferred to Campagni on Jan. 31. McCarthy said a growth in sales tax over a 10-year period would help subsidize the investment.
Supervisor Robin Williamson thanked the redevelopment authority and Campagni for working long hours on this incentive agreement.
“All this work wouldn’t have become successful if not for Dick Campagni, who worked with us,” she said.
Tom Keeton, chairman of the parks and rec commission, said he came to the meeting expecting to complain.
“But even I can make sense of the economics of it all,” he said. “Carson City is not going to lose money. It’ll probably even gain.”
n Contact reporter Becky Bosshart at email@example.com or 881-1212.