Brown County Commissioners approved a request for a tax abatement on a planned development of a $10 million General Motors and Toyota Dealership to be built in Early by 2013. Owner Greg Bruner and consultant James Campbell presented the proposal for the tax abatement.
Campbell presented the commissioners court with proposed tax abatement guidelines and criteria which the state requires counties to renew every two years, coinciding with the biennial Texas legislative sessions. Campbell originally helped establish the last abatement guidelines and criteria when the county approved a tax abatement for 3M in 2007 when he served as the Brownwood Economic Development Director and stated that the proposed guidelines and criteria have not changed from the 2007 agreement. These guidelines and criteria were unanimously approved by the court.
Campbell went on to explain the abatement requested on behalf of the Greg and Dwain Bruner through their 6:21 Heartland Investments, LLC which is the owner of the land the dealership will be built upon.
The abatement agreement states that Bruner must continue to retain or create at least 50 full time employees at the new facility, and the construction process will be completed within three years. During which time, no taxes will be paid on the unfinished improvements.
The owners anticipate that the new facility will grow and create 10-15 new positions through its separate GMC and Toyota service and parts departments. Currently, Bruner has 52 full time employees.
The Bruners hope to complete construction of the 30,000 square foot $10 million project in time to have the new facility on the 2013 tax rolls, which will be approximately a 12 month period. If the construction is not completed within the three years, the abatement will be nullified and the tax abatement received would have to be repaid.
The abatement is applied only to the improvements after they are completed and will last for a 7 year period and taxes are abated on a declining percentage each year. Upon construction, completion and issuance of a certificate of occupancy from the City of Early, 90% tax abatement would apply, will decline by the 7th year to 30%, then on the 8th year of business, 100% of the taxes would be paid each year based on the Brown County Appraisal District appraised value at that time. During this period, abatement does not apply to inventory or the land value, so significant taxes will be collected by the City of Early and Brown County. Early ISD is prohibited by state law from offering abatements; however can offer a tax ceiling according to Campbell.
“The project will only be taxed once it is complete,” said Campbell. “It is anticipated that this project will be completed by the end of next year, to be included in the 2013 tax rolls as a completed project and the abatement process will begin.”
According to Campbell and Bruner, the move is a win for everyone involved. Currently the land is valued at $955,370, which will continue to bring the City of Early, Brown County and EISD its current tax revenue as will any inventory such as vehicles and equipment on the site. According to figures from County Judge Ray West, the abatement agreement would result in 1/3 of the taxes being abated and 2/3 of the taxes being paid during the term, while increasing the tax base of the property to $10 Million. Taxes on that value would be $217,098 according to West.
The car dealership’s current location at 300 E. Commerce in Brownwood is leased by the Bruner facilities. Once the move is complete, the 12 acre site will be optimal retail space and will bring even more sales tax revenue to the City of Brownwood than the car dealerships did. Campbell explained that car sales tax goes to the state and does not go to municipalities. Only the sales tax generated by service and parts would be lost in the move. The 12 acre plot in Brownwood could provide building opportunities for multiple businesses with its high traffic location.
The project is also planned with keeping money in the local economy in mind, Campbell said. Brownwood’s Waldrop Construction has been selected as the builder and will work to keep all subcontractors local and materials purchased locally according to the Bruners.
Campbell said that this is not a voluntary move for the Bruner dealership, as General Motors Corporation and Toyota are requiring that the dealership be moved. The new facility will be near the intersection of highways 183N and US 377/67.
The Bruners bought Holley Chevrolet in 2007 and have planned to build the new dealership since that time, according to Campbell.
“This is a project that has been, we will say, in the mill for some time,” said Campbell. “Bruner Motors bought the dealership some years ago and it has always been their plan through General Motors and Toyota to construct new dealerships.
Campbell explained that he considers this project a very significant project for the future development for the Early area and that it may spark additional development in the future.
“In general, since I have been in the development industry in this county for the past 18 years, this is a great project for the City of Early,” said Campbell. “As you know for many years, the city has attempted to develop this intersection 183 and highway 67/84 and has run into many obstacles. This will be, I think, a pivotal project for this community. It will enhance future development for this area and which will add additional taxes; all the taxing entities that are involved. So potentially this project could jump start a development for the City of Early.”
The City of Early has put consideration of abatement on the October 26th agenda of the city council, according to law, the county must take action on this issue first according to Campbell. All taxing entities must use the same criteria; however they may make different tax abatement agreements.
Bruner Auto Group will break ground on Thursday morning with construction scheduled to begin before the end of the year according to the owners.
Pictured above is owner Dwain Bruner with concept art of the new Bruner Chevrolet dealership.
Consultant James Campbell and owner Greg Bruner address the court and discuss plans for the new dealership.
Owner Dwain Bruner shows Brent Bush, Brown County Emergency Management Coordinator, and County Tax Assessor-Collector Cheryl Nelson concept art of the new facilities.
