Car dealership is first new Carson entry in several years
December 20, 2006
The Rajun Cajun’s new Suzuki dealership is Carson City’s first new entry into auto row in several years and will bring the city an estimated $200,000 yearly in sales tax revenue, according to city officials.
Plans submitted to the city on Tuesday by Reno car dealer Bob Chauvin show a five-level dealership with a 3,320-square-foot showroom.
Susan Johnson, city director of finance, said Wednesday that the development of this new car dealership could increase annual sale tax revenue by $200,000, if the dealership earns about $8 million in annual taxable sales.
“That amounts to an annual 1 percent increase in taxable sales in its first full year,” she said.
Joe McCarthy, Carson City’s economic development and redevelopment manager, said this $8 million figure is an estimate for a dealership of this size in the market.
The city’s goal is to keep car buyers in the market, rather than buying in Washoe or Douglas counties.
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“It’s been several years that a new car dealership has looked at Carson City, and this is good news,” said McCarthy.
He said the last change with local new car dealers was when Dick Campagni added his Scion dealership to his three other dealerships on South Carson Street. Existing dealers have expanded in Carson City, but few new ones have entered.
The sales tax revenue from car dealers decreased 5 percent in 2006 from the previous year. Car sales tax revenue makes up 34 percent of the city’s $23 million collected annually, according to the finance office.
Chauvin has said that he hopes to open the new dealership at 3449 S. Carson St. in October.
The Suzuki dealership could receive up to $500,000 over 10 years in sales tax incentive money from the city. McCarthy said talks are ongoing with Chauvin, who operates three dealerships in Reno. So far, the only car dealer to take advantage of this economic incentive deal was Campagni, who plans to build a new Toyota store on South Carson Street.
• Contact reporter Becky Bosshart at email@example.com or 881-1212.