CHARLES CITY — Mike Molstead Motors plans to expand with a 7,200-square-foot addition that will have nine new service bays. It is also asking the city for some help with the $1.3 million project in terms of tax rebates which could amount to nearly $38,000 over five years.
The Charles City Council will discuss the request at it’s planning meeting tonight (Monday, April 24).
“Mike Molstead Motors has proven to be an exceptionally successful business enterprise at 1501 South Grand Avenue,” Charles City Area Development Corp. Executive Director Tim Fox wrote in a tax rebate application letter to the city. “It has witnessed several expansions since its inception in 1995, all sans any financial assistance from the city of Charles City. It currently employs 66 and its business operation is critical to the local economy.”
Aside from the jobs and the tax base provided by the company, it’s common to see Mike Molstead Motors assisting community causes, such as high school sports.
“The project will add five new jobs which will have an average wage of $16 (per hour).” City Administrator Steve Diers wrote in a memorandum to the council. “There will be a private capital investment of $1.3 million and will ad $320,000 new taxable value.”
Diers said Mike Molstead Motors qualifies for a five-year rebate of 80 percent of the new taxable value, “which equates to approximately $7,569.10 per year for five years.”
The total rebate would be $37,845.50 in that scenario.
See the same documents as the City Council by clicking the link below.