Carson City may be chipping in an additional $500,000 to help construct a new auto dealership.
It's costing about $1 million more than expected to build the Carson City Toyota on South Carson Street near Wells Fargo Bank, according to the city, which means the city's Redevelopment Authority would cover about half the cost.
City supervisors will consider the proposal during their meeting Thursday.
Campagni would pay back the city its share of the added cost over seven years through new property taxes the business pays from its expanded operation.
"It's beyond what we first anticipated, but his dealership is doing extremely well," said Joe McCarthy, the city's redevelopment manager. "No other members of the redevelopment area will be responsible for the cost."
In 2005, the city provided Dick Campagni with a $3.6 million incentive to buy land for the new dealership.
"The whole idea is to get him to build a wonderful facility and start selling more cars," said Supervisor Robin Williamson.
Toyota Motor Corp. upgraded its requirements for dealership construction and design after the agreement between Campagni and the city was reached. The corporation rejected the original design plan for the new dealership, which would sit on a piece of land that has a severe change in grade moving west from Carson toward Curry Street, McCarthy said.
The original 2005 agreement requires Campagni to keep his dealerships in Carson for at least 15 years. The money would be paid back to the city over 10 years by increases in sales tax over the amount the auto dealerships generated the year the deal was made.
Auto sales comprise about one-third of the city's annual sales tax revenue. The city continues talking to other local auto dealers about helping them expand their businesses and, in turn, add to the city's revenue base, McCarthy said.
"It's not a bad thing," said Jeff Woodward, general manager of Carson City Jeep-Nissan, also located on South Carson Street. "Redevelopment helps increase the tax base which benefits Carson City and all of us who live here."
Campagni wasn't available for comment about the redevelopment proposal.
• Contact reporter Terri Harber at tharber @nevadaappeal.com or 882-2111, ext. 215.
If you go
WHAT: Carson City Board of Supervisors meeting
WHEN: 8:30 a.m. Thursday
WHERE: Sierra Room, Community Center, 851 E. William St.