The Tucson City Council approved pre-annexation agreements Wednesday with the Volvo and BMW car dealers at the auto mall.
The council is poised to approve another agreement with the Jim Click Kia dealership later this month.
The city is trying for a second time to annex the part of the auto mall area that lies outside its boundary, which includes Volvo of Tucson, 801 and 831 W. Wetmore, and BMW of Tucson, 855 W. Wetmore Road.
Annexing 95 acres at the auto mall would bring about $2 million a year in tax revenue to the city, which would help balance the cityβs budget.
The cost to the city to provide services to the area is estimated at $80,000 to $150,000 a year.
βWhen the budget was crafted for 2016, we counted on revenues from this annexation and these two properties are part of that,β City Manager Mike Ortega told the city council.
The city agreed to reimburse each dealer up to 30 percent of the city sales taxes on new and used cars, up to $50,000 per year for 10 years. The money can be used for job training and college classes for the dealersβ staff.
Other dealerships that would be part of the annexation are the Larry H. Miller Volkswagen , Fiat and Alpha Romeo dealerships.
The city needs the signatures of 69 property owners to annex the area and it has 62 in hand, said project manager Mike Czechowski.
The Auto Mall Business Association supports the move.
