Hemet approves tax-sharing agreements to support Hemet Toyota and Tim Moran Hyundai; council authorizes contracts

The Hemet City Council voted unanimously on Feb. 24 to approve two Vehicle and Automotive Tax Sharing Program agreements that would reimburse Hemet Toyota and the Tim Moran Group (Hyundai) from a shared portion of sales tax proceeds to support facility expansion and modernization.

Economic Development Director Ben Sonoval described outreach to regional brands, the application process and staff analysis. Each applicant requested up to $7.5 million under the program; reimbursements would be paid from a dedicated split of the Bradley-Burns sales tax portion (staff described it as a sharing of 0.5% of the Bradley-Burns portion for eligible transactions). Staff emphasized this would not touch Measure A funds and that the city would continue to receive a majority of sales-tax receipts. Projections presented by staff estimated conservative annual fiscal impacts and possible long-term job creation (estimates ranged by applicant from roughly 25 to 115 jobs depending on the project scope and buildout).

Applicant representatives described proposed expansions (showrooms, expanded service bays, solar panels) and estimated timelines; Tim Moran's representative said the new showroom would be about 10,000 square feet and expected to generate higher sales and service activity.

City staff and the city attorney explained enforceable contractual provisions, including clawbacks if a dealership ceases operations or experiences a 25% decrease in taxable sales, and recommended limiting expansion incentives to a small number of projects while monitoring initial performance. Mayor Pro Tem Maals moved, Councilmember Lodge seconded, and the council approved both agreements by a 5-0 vote, authorizing execution in accordance with program terms.