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The new car dealership base in southern Scottsdale along McDowell Road and Scottsdale
Road has remained solid even as pressures have increased to relocate. Sales tax production
has continued to increase, an indication of rising sales values and volumes among the
dealerships. The attached map identifies the dealerships that are in place and the
brand(s) of vehicles they sell.
Dealerships in southern Scottsdale produce over $8,000,000 a year in sales tax, an
amount that has been increasing each year, following a decline in 2002. Without accounting
for the increase in tax rates car dealer sales tax payments were up $400,000 in fiscal
year 04-05 (approximately a 5% increase), which was nearly identical to the percentage
increase of the dealerships in the Frank Lloyd Wright/Hayden area. With the increase in
the sales tax rate the actual increase was nearly $2 million.
The new car dealers and City of Scottsdale have created a joint marketing program to
draw customers and attention to the area. The dealerships' commitment (beyond their normal
advertising) is over $800,000 per year and the City has committed to another $300,000 per
year for five years.
New private investment is being made by companies like Bill Heard Chevrolet dealership
that is preparing to build a facility at the southwest corner of Pima Road and McDowell
Road. This project will be cost over $12 million for construction. Additional development
by Heard will take place later date on the northwest corner of the same intersection. To
the west on McDowell, the existing Nissan business was recently sold and the new owner has
committed to remain on the street.
Other dealers have recently made significant investments in their existing facilities.
For instance, United Auto Group renovated a showroom and repair facility for sales and
servicing of Aston Martin and Ferrari at 68th Street and McDowell. On Scottsdale Road
south of McDowell, Mark Mitsubishi/Kia is finishing the plan review process and will build
a new Kia dealership. Scott Toyota has also invested in its property and others have made
ongoing improvements to their buildings. These actions indicate a longer rather than
shorter-term commitment to McDowell Road as a place to invest and do business even as
adjustments in marketing and product mix occur in this very competitive industry. The
private actions track well with public sector projects such as the streetscape
improvements along McDowell Road.
January 2006