County approves tax-sharing deal to secure Inland Kenworth expansion in Fontana
Loading...
Summary
The Board of Supervisors approved a performance-based sales and use tax-sharing agreement with Inland Kenworth to support a planned 29,000-square-foot expansion in unincorporated Fontana that county staff said will create jobs and new sales tax revenue.
The San Bernardino County Board of Supervisors approved a sales and use tax-sharing agreement to incentivize Inland Kenworth’s planned expansion in unincorporated Fontana, County economic development staff said.
County staff told the board the agreement is performance-based and intended to retain the long-established truck dealer, generate new sales tax revenue and create higher-paying jobs for residents.
Derek Armstrong, the county’s economic development director, said the project will expand the company’s footprint by adding a 29,000-square-foot facility that will include four new service bays and is “expected to generate $20,000,000 in annual sales revenue.” He said the expansion is expected to create about 30 new jobs, with most starting at roughly $45 per hour plus benefits.
Armstrong described the incentive structure as performance-based: the company must be current on taxes, complete construction and provide a certificate of occupancy, and exceed a sales threshold based on its three-year historical average. The county and company agreed on a starting threshold of $400,000 in incremental taxable sales. The incentive is capped at $1.5 million or 20 years, whichever comes first, county staff said.
Board members discussed the county’s objectives for such agreements and the bar the county is setting for wages and job quality. The board approved the agreement after the public hearing; Supervisor Hagman moved the motion and Supervisor Armendariz seconded it. The clerk announced that the item passed unanimously.
County staff said, if construction is completed as expected, the incentive would most likely begin on July 1, 2027; payments are tied to actual sales tax performance and will not begin unless the company exceeds its historical sales baseline and meets the other conditions.
What happens next: county staff will administer the agreement, verify the company’s performance against the baseline and disburse payments within the limits of the cap if and when the performance conditions are met.
