Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy in connection with a Retail Sales Tax Incentive Agreement with Worthington Ford Inc., pursuant to California Government Code Section 53083; Authorize City Manager to execute all documents necessary to effect the Second Amendment to Lease No. 24823 between the City of Long Beach and Worthington Ford, Inc., to extend the term of the ground lease to September 23, 2030, including one five-year option to extend the term to September 23, 2035, for the use of 3.24 acres of land at the Lakewood Boulevard off-ramp at an annual rental rate of $1 per year; and Authorize City Manager to execute all documents necessary to implement a Retail Sales Tax Incentive Agreement with Worthington Ford, Inc., to assist in financing the renovation of the electronic display sign located at 2601 Lakewood Boulevard. (District 5)
Carries. Thank you and thank you all. Webber Medals. Congratulations. And thank you again for being such a great business partner. Hearing number three. Report from the City Manager recommendation to receive supporting documentation into the record. Conclude the public hearing regarding an economic subsidy in connection with the retail sales tax incentive agreement with Worthington Ford pursuant to California Government Code Section 53083. Authorize the city manager to execute all documents necessary to effect the Second Amendment to lease between the City of Long Beach and Worthington Ford to extend the term of the ground lease to September 2030, including one five year option to extend the term to September 2035 for the use of 3.24 acres of land at the Lakewood Boulevard off ramp at the annual rental rate of $1 per year, and authorize the city manager to execute all documents necessary to implement the retail sales tax incentive agreement with Worthington Board to assist in financing the renovation of the Electronic Display Sign located at 2601 Lakewood Boulevard, District five. This item requires, you know. If I was going to speak on this, please rise. Mr.. Mr.. Modica. You and each of you do solemnly state that the testimony you may give in the cause now and pending before this body shall be the truth, the whole truth, and nothing but the truth, so help you God. Great. Thank you, Mr. America. Thank you, Mr. Mayor. The staff report on this item will be given again by Mike Conway, our director. Of Economic and Property Development. Mayor Garcia, members of the City Council decided relates to the renovation and continued operation of the Worthington Ford Sign, located on city owned land, leased to Worthington Ford within the Freeway Roundabout at Lakewood Boulevard in the four or five freeway. The lease premises is 3.24 acres, accessible only through an off ramp. Underpass, is not a developable site and can only be used for storage purposes. Since 1996, Worthington Ford has leased the premises for temporary storage of vehicles and for the construction and maintenance of a freeway adjacent electronic display sign. The city leases the premises to Worthington Ford at a rate that is fully offset by the cost of maintenance and trash and debris removal. Worthington seeks to renovate the freeway sign to provide high resolution graphics. The city also controls 20% of the advertising time on the sign for public service announcements. Without such renovation, the freeway sign will become outdated, which may result in diminished sales volumes and diminished value of the city's 20% advertising time. The cost of renovation is approximately $680,000. Worthington requests that the city participate in 50% of the cost of renovation through a sales tax sharing agreement. The proposed agreement shall be for a term of 15 years or upon reimbursement of $340,000 in sales tax revenue above a base of $380,000, whichever first occurs. The renovated sign will be no larger than the advertising site or the existing sign, but will convert to a V-shaped configuration to gain better visibility by drivers on the four or five freeway. The upgraded LED color display will not have increased overall light output and will not exceed Caltrans standards of point three foot candles at a distance of 250 feet. The LED color display is fully programable and capable of 0 to 100% dimming to control light output. Worthington further requests that the ground lease term be extended in order to protect a significant investment into the freeway sign. Worthington request a ten year extension of the lease with a five year option with an expiration date of September 23rd, 2035. This will result in 20 years remaining on the lease. Meyerson City's economic consultant, valued the city as 20% advertising time on the freeway sign at between 190000 to 240000 per year and over a 20 year term and extended lease. The present value of this to 190000 to 240 is approximately $2.5 million. Additionally, Keyser Marson anticipates that sales volumes may increase up to 6% per year over the 20 year term. The present value of the increased sales tax revenue is estimated to be approximately $870,000. It is further estimated that the increased sales volume will not only preserve existing jobs, but may create up to 15 new jobs, with 80% being full time, 20% being part time. So in order to protect an existing business in Long Beach, preserve and grow jobs within the city and enhance the city's future revenue staff request that City Council conclude the public hearing. Authorize the extension of the term of the ground lease for ten years, with a five year option expiring on September 23, 2030, at an annual rate of $1, with the obligation of maintenance and trash and debris removal and authorize city manager to enter a retail sales tax incentive agreement with Worthington for a period of 15 years and establishing an annual base of $380,286. Representatives of Worthington Forward are in the chambers this evening, including Worthington. And with that my I have concluded my report and I'm available to answer questions. Thank you. I'm going to close the hearing. But before that, is there any public comment do so at this time. You don't have to. It's completely up to you. Okay. Okay. No problem. No worries. Let me take you back to the to the council Councilman Mongo. Since I have come on board, I've had several meetings with the individuals who construct signs. Nick Worthington himself and community partners. And I think that we have come up with a solution that is something that will help drive economic development in Long Beach. It will hopefully increase the sales at Worthington Ford, which will in turn increase sales tax revenue to the city. The Worthington's have been a great community partner. For those who don't know, there was a time where Ford offered them lots of money to close down their store here and they chose to stay. They chose to keep the jobs. They chose to ride out the hard times when people weren't buying cars because they're a part of this community. And it's great to have a long and continued partnership and an extension of your contract so that you'll be with us for a very long time. So thank you very much for all you do for the community. Thank you for the changes you've made to the sign that will enhance both the visibility to the freeway and then less impact to anyone else that's not on the freeway. So thank you very much for all of that. Thank you. With that, Councilman Richardson, do you have any comments on your second? Seeing nonmembers, please cast your vote. Councilman Price Andrews. Absent. Motion pass. Okay. Motion carries. Thank you. Congratulations. Thank you again. Where there's good amount of hearings this morning or this after this morning's evening hearing. Number four, it's going to be morning by the time the meeting's over.