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With the recent closure of Hatch Motor Company in Snowflake, the Snowflake Town Council made a bold move to enter a development agreement with Arizona Motors Snowflake, Inc. (AMSI), on March 5, in order to keep a car dealership in operation on the existing developed parcel.
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The agreement is for five years, with the town giving AMSI a 50 percent rebate of the two percent sales tax collected on the vehicles they sale.
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As noted in the agreement, “The purpose of this agreement is to create an economic tax incentive to AMSI; to preserve and enhance the existing automobile dealership; to encourage future and full development of the property; and to facilitate the construction of new business opportunities on the property including a new dealership.”
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A public hearing was held for comment, but there were no attendees to the hearing or comments made.
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In his presentation to the council, Town Manager Brian Richards said, “It is a win-win. If they don’t produce any sales, they don’t get anything. If they do, then they will get a part of the sales tax. We have lost business in town. I don’t think anyone will be upset that we are trying to retain jobs and businesses for the town.”
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The initial agreement presented to the council was for 120 months or 10 years. Mayor Lynn Johnson questioned the wisdom of having the contract for that length of time. “The 120 months is a long period of time, is there any thought we might make it for a shorter period of time and evaluate the situation after a period of time.”
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Vice Mayor Kerry Ballard suggested that time be limited to 60 months or five years, to which the other members of the council agreed.
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Councilman Hunter Lewis stated, “There is nothing for us to lose in this deal. I think the revenues will increase.”
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Councilman Greg Brimhall saw the agreement as a forward movement for future economic development as he said, “I am excited for other businesses, so maybe we will get some other things that will spin off of this as well.”
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In the end, the council voted unanimously to enter into the agreement for five-year period with an option for consideration of renewal.
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Dale Call, building inspector with Snowflake Planning and Zoning Commission (SPZC), brought to the council a review for proposed development of the Kay Apartment Complex on a property located at 383 S. First W. St. in Snowflake.
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Call said the review to SPZC was presented by Jared Hatch of Hatch Custom Homes and Remodeling LLC. “Jared came to us with a diagram that showed an eight unit complex,” said Call, who further noted that the property was zoned residential transitional for up to 14 units per acre in density.
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“After calculating out the dimensions of the property, it was determined that eight units would be allowed,” shared Call. However, during the SPZC meeting, Hatch informed the committee that the owners wanted a 20-unit apartment.
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“I advised him that town code only allowed the eight units,” continued Call. “I realize the owners want to make a faster profit and I am pro business, but I don’t think it would work well to have that many units and would endanger the future tenants. We, SPZC, like the eight units and recommend that the development be approved based on eight units.”
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In further discussion it was noted by Johnson and Councilwoman Allison Perkins that there needs to be more information by the owner and contractor.
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A motion was passed to not allow the development until more information was forthcoming. All council members present including Johnson, Ballard, Perkins, Byron Lewis and Brimhall voted for the motion. Hunter Lewis voted against.
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In other business, the council:
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* Recognized Boy Scout Bryce Rhoton of Troop No. 710 for his attendance at the meeting in pursuit of his communication badge.
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* Approved the purchase of a new 2019 Caterpillar mini excavator from Empire for $81,638 including tax. This was the lowest of the bids received.
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* Approved a special use permit for Beverly Bogunovich to build a detached garage with living quarters at 3015 Jasmine Lane as long as it meets all the codes and doesn’t become a single apartment for rental.
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* Approved the February check register for a total expenditure of $255,034.
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