Stanislaus supervisor wants closer look at McHenry tax-sharing deal
A rezone for a BMW dealership led to talk Tuesday of revisiting the tax-sharing agreement between Stanislaus County and Modesto for the north McHenry Avenue area.
That territory has been politically sensitive since the 1990s, when the county allowed auto dealers to locate on McHenry just outside the city. Since a pact was signed in 1998, the county and city have shared the tax revenue from the north McHenry corridor, including the major sales tax dollars generated by the concentration of car dealers.
Supervisor Bill O’Brien said he recently watched a Salida fire unit respond to a call to a county-governed section on McHenry, driving past a Modesto fire station that was closer to the incident.
O’Brien wondered whether there’s a better way to provide fire response and other services to north McHenry and also divide the taxes from that area.
At present, the city gets 54 percent of the taxes and the county keeps 46 percent. The city and county turf on both sides of McHenry, from Standiford-Sylvan Avenue to Kiernan Avenue and Claribel Road, produce around $4 million a year in property and sales tax, business license fees and other taxes.
“I think it is just worth a conversation,” O’Brien said.
It could be good timing for the suggestion.
At a workshop in February, the Modesto City Council told staff members to look into annexation of the north McHenry area. The long-awaited annexation is on the city’s work plan for this year, Deputy City Manager Brent Sinclair said.
“If the county wants to talk about the tax-sharing agreement, we are willing to listen,” Sinclair said.
County supervisors assured the owner of Valley BMW-Kia that the possible negotiations won’t delay his plans. The board approved changing the agriculture zoning for the nine acres, so the dealership owned by Ed Fitzpatrick can move from 4369 McHenry, just south of Bangs Avenue, to 4761 McHenry, next to Roberts Auto Sales.
The owner will subdivide the 9 acres for a new dealership sporting a 30,000-square-foot building with a showroom, offices and service department. The business plans to begin construction soon and open at the new location in 10 months or so, Chief Operating Officer Ryan Fitzpatrick said.
Four parcels will be reserved for other auto-related businesses, including a second dealership to emerge sometime in the next 15 years.
Customers will access the new Valley BMW dealership from McHenry or an extended Spyres Way.
Dennis Wilson of Horizon Consulting said Valley BMW is in a leased building near Bangs, which is due for a remodel. The move will enable Fitzpatrick to own his facility.
County Chief Operations Officer Patty Hill Thomas, who was subbing for Chief Executive Officer Stan Risen, said staff members can look into O’Brien’s proposal for talks with Modesto. Risen was away for a family matter.
Supervisor Terry Withrow said, “It never hurts for us to continue to have conversations with our partners at the city.”
Ken Carlson: 209-578-2321
The Board of Supervisors took the following action Tuesday:
– Approved a financing plan for an expensive replacement of the heating and cooling system for the Community Services Agency facility on Hackett Road. The county will finance the $10 million cost over 15 years through what’s called lease financing. It will eliminate the $7.3 million balance on a 2007 debt issue. Replacing the worn-out system is costly because it was custom-made for the 252,000-square-foot building constructed in 1994, officials said. About 1,300 employees work in the two-story facility, which serves 1,200 customers daily.
– Heard a third-quarter financial report for the 2015-16 budget year and approved recommendations.
– Postponed agreement between the county and Modesto for graffiti abatement in unincorporated areas near city boundaries.
This story was originally published May 3, 2016 at 4:49 PM with the headline "Stanislaus supervisor wants closer look at McHenry tax-sharing deal."