ADELANTO, Calif. (VVNG.com) – In a bold move to entice new dealerships to open in Adelanto, the City Council has given the green light to the “HWY 395 Auto Dealership Incentive Program.”
The incentive program offers an impressive and aggressive rebate structure designed to provide a substantial boost to businesses, promoting long-term sustainability and generating millions in savings.
Under the program, new dealerships will receive an initial rebate of 90% of the city’s share of sales and use tax revenue for the first two years of operation. The rebate will then decrease to 80% in the third year, 70% in the fourth year, and 50% thereafter, lasting for a maximum of 10 years.
The City currently imposes a sales and use tax rate of 7.75% on all retail sales, with 1% of that going to the City. The aggressive rebate structure aims to attract the first few dealerships, providing a significant boost to their cash flow and acting as a catalyst for future development.
The incentive program will be offered to the first few applicants opening in Adelanto, with the possibility of program revocation after the establishment of two dealerships.
Council member Angelo Meza proposed that Elon Musk would be a perfect candidate for the program. Meza emphasized that Elon’s familiarity with the City, having previously established and operated his various ventures such as his boaring company and, most recently, his Starlink company, made him an ideal prospect.
In February, it was revealed by City officials that Adelanto has been selected by SpaceX as the location for its Starlink ground infrastructure facility. This facility will play a crucial role in supporting the company’s upcoming generation of satellites.
“He might as well do a trifecta and get Tesla up here,” stated Angelo Meza.
To qualify for the incentive, new auto dealership developments must have a minimum size of 200,000 square feet and be located along the frontage of Highway 395 or adjacent to front parcels with clear visibility from the highway.
Eligible auto dealerships must be authorized retailers of manufacturers, focusing on selling new cars, trucks, RVs, or other motorized heavy equipment.
With the approval of the Auto Dealership Incentive Program, Adelanto looks forward to attracting new dealerships, fostering economic growth, and creating a sustainable future for the community, City staff said.
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