A board has supported a transition to exclude a vehicle maker from paying a £832,421 charge.
Oxford City Gathering chose to clear the Local area Framework Duty (CIL) that BMW Smaller than normal Plant in Cowley, Oxford, would owe for a "significant update".
BMW had been conceded an arranging consent for another manufacturing plant which pulled in the CIL.
Councilor Louise Upton said losing BMW would have "disastrous outcomes" for the city.
The choice comes days after creation of the fifth era Smaller than normal Cooper started at the plant in Cowley.
Mrs Upton, who is bureau part for arranging and better networks, said BMW's choice to begin their new Small scale creation in Oxford was "awesome news".
Talking at a bureau meeting on 13 Walk, she made sense of that the CIL had been drawn in by the arranging consent for "an exceptionally huge customized plant fabricating" that BMW had been conceded.
The new plant would permit BMW to move to completely electric vehicle creation.
The organization says on its site that they were outfitting to construct two of their new all-electric Small scale in the Oxford plant from 2026.
It adds that by 2030, it would only deliver electric vehicles.
The organization is putting £600m into the Cowley plant, with £75m coming from the UK government.
Mrs Upton explained that CIL cash "goes into a focal pot out of which we could draw for different framework projects".
She added that the producer had picked a course to an exclusion to the duty which set off the Endowment Control Act.
"We have taken lawful guidance on this and both BMW and our board workplaces concur that this solicitation meets those standards," Mrs Upton said.
She added that urban areas "need to contend to have these industrial facilities" and said they carried positions to the processing plants and the stock chains around them.
"I don't figure we could gamble with BMW choosing to move this electric Smaller than expected line somewhere else," she said.
Mrs Upton recognized the enormous duty aggregate however said not conceding BMW the exclusion would have "totally devastating results" assuming that the producer chose to leave.
Councilor Susan Brown, who led the gathering, said the board would work with BMW who were "quick to do their part for the nearby economy past giving position and business".
Source:BBC