Extreme Motors wants to move its Hyundai dealership from Bloomington to Normal. It would go in the old Saturn dealership near Sam's Club.
Normal is offering Extreme Motors a financial incentive so it can afford the expansion.
City Manager Mark Peterson said, "We looked at their numbers and felt it was needed to make it financially viable. They're going to have to hire people, remodel the building somewhat and all in a relatively short amount of time."
The incentive includes Extreme getting one half of the 1% sales tax for four years, or $600,000 whichever comes first.
"This would be new revenue generated through the sale of cares. It's money we haven't already counted on. There's little risk to the town. If he isn't successful, we're not all this money" Peterson said.
But Bloomington Mayor Steve Stockton expressed concern about the proposed expansion Monday.
"What kind of precedent does this set?" he asked.
Stockton understood Extreme Motors has the right to do what's best for the business, but he took issue with public money getting involved.
He said, "This has gone one before back in the 1980's, and that's why the towns originally decided we've got to stop this because we've played against each other and in the end it'll be the taxpayers who lose."
Peterson countered by telling WMBD Extreme Motors approached the town. He said the town alerted Bloomington to the proposed incentive.
"This is a great opportunity for him to solve a problem, and it's a good opportunity for the town in terms of we're getting a vacant building in a very important commercial area occupied again."
Extreme General Manager Dan O'Brien was not available for comment Monday.
No action was taken Monday night because of Mayor Stockton's concerns.
In fact, council pulled the tax incentive issue from the agenda, hoping to resolve issues with Bloomington officials.
Bloomington would still keep Extreme Nissan and Kia.
Kia would become a stand alone dealership if Hyundai moved.