DeKalb City Council OKs sales tax incentive agreement for Brad Manning Ford

DeKALB – The DeKalb City Council greenlit an agreement this week for sales tax sharing in an effort, city officials said, to keep a fourth-generation family business in town as the business looks to expand.

The DeKalb City Council voted, 7-0, earlier in the week to approve a sales tax sharing agreement with Brad Manning Ford on South Fourth Street. Sixth Ward Alderman Mike Verbic was absent from the meeting.

According to a Wednesday social media post from city of DeKalb, interest from other municipalities that want to attract the dealership to their communities rose since Manning became the exclusive Ford dealership in DeKalb County in the previous year. City officials also wrote in the post the agreement includes the city and dealership equally sharing 1% of the sales tax revenue generated at the business up to an incentive of $1,675,307 or the end of the ten-year agreement, which can be extended by five years twice.

Fifth Ward Alderman Scott McAdams said during the Monday meeting the city losing the dealership “would be a devastating effect for Fourth Street redevelopment.”

“It’s the cornerstone of our Fourth Street business corridor and I would absolutely urge the rest of the council to support it as well,” McAdams said.

However, First Ward Alderwoman Carolyn Morris said it’s possible “other businesses may feel to some degree as if they deserve the same.”

“So I think that that is a concern that I just want us to be aware of as we move forward,” Morris said.

Seventh Ward Alderman Tony Faivre said it is a fair 50-50 split in the competitive environment for tax dollars as opposed to DeKalb giving away 100% of sales tax revenue.

“So we need to remember that, as we’re looking at other businesses and as we’re trying to make DeKalb more attractive to other companies wanting to come to the DeKalb, we really want to be a business friendly and attractive community so that they want to come and set up business,” Faivre said.

The agreement comes as the dealership plans to expand its parts department, according to the city’s social media post.

Second Ward Alderwoman Barb Larson said the sharing agreement does not begin until a temporary occupancy permit is issued for the addition.

“You’re already reinvesting in DeKalb before the agreement ever starts by building a new facility,” Larson said. “So that just tells me all over again your commitment to this city.”

The Manning dealership moved to DeKalb from Rochelle in 1956 after the company bought Vallas Motors, according to the city’s social media post. Its first DeKalb location is where Delano’s Home Decorating on North Fourth Street is located.

The multi-generational family dealership built a new facility on Manning Drive and relocated there in 1974 after buying a gas station.