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Century Motors seeks 15-year PILOT for $6 million of equipment; council discusses shorter terms, requests payment history
Summary
Century Motors requested a 15-year payment-in-lieu-of-taxes (PILOT) for a $6 million equipment investment; council members asked staff to research prior payments and to consider shorter terms and clawback provisions.
Council discussed a request from Century North Motors (Century Motors) for a 15-year payment-in-lieu-of-taxes (PILOT) agreement tied to a $6 million investment in equipment.
Scott Collins summarized the request from the Industrial Development Board's attorney: Century Motors seeks a 15-year pilot for $6,000,000 of equipment. Collins said the company employs 87 people and the current submission does not include additional employees; the investment is for equipment only. He said the most recent similar PILOT for the company was in 2019.
Councilmembers asked for more information before acting. One councilmember asked for a report showing how much the company has paid under prior PILOTs over the past 10'15 years and whether any clawback provisions exist should Century Motors fail to meet terms such as investment or employment levels. The council discussed negotiating counteroffers (examples cited in the meeting included 7, 10, or 12 years) and asked the IDB attorney to negotiate on the council's behalf.
Staff said they would research prior PILOT payment history, the terms of previous agreements, and whether the county would need to approve any extension (some councilmembers noted county taxes can be involved and have been in prior cases). Several councilmembers emphasized the need for a written policy with objective parameters (years, number of employees, investment thresholds and clawbacks) rather than ad hoc terms.
Ending
Staff and the IDB attorney will return with the payment history, suggested counteroffer terms, and recommendations for policy parameters to guide future PILOT negotiations.
