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 HTL Automotive, Inc., dba Hooman Toyota of Long Beach, pursuant to California Government Code Section 53083; and Authorize City Manager to execute all documents necessary to implement a 15-year Sales Tax Incentive Agreement with HTL Automotive, Inc., dba Hooman Toyota of Long Beach, for the relocation and development of a Toyota dealership to be located at 3399 E. Willow Street. (District 5)
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. Report from 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 whom? In Toyota of Long Beach, pursuant to California Government Code Section 53083 and authorize the city manager to execute all documents necessary to implement a 15 year sales tax incentive agreement. With whom? In Toyota of Long Beach for the relocation and development of a Toyota dealership to be relocated at 3399 East Willow Street, District five. This item requires an oath. Thank you. If anyone's going to speak on this, please, please rise to 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. So help you God. Please. Thank you, Mr. Mayor. Members of the council again. This item will be held. The staff report will be done by Mike Conway. Mayor Garcia, members of the City Council. This target in Vail involves a sales tax sharing agreement with HTL Automotive, also known as human Toyota. This item was previously brought to City Council on October 21st, 2014, authorizing the city manager to enter a retail sales tax incentive agreement with human Toyota to offset certain expansion costs for relocating the former beach Toyota dealership from the traffic circle to Redondo and Willow at the former Cadillac site. Legislation that became effective as of January 2014. Amends Amend the government code section 53083 to require a public hearing for any actions by the city council that result in a city subsidy. Consequently, this retail sales tax incentive agreement is being brought back to city council in conformance with the new legislation. So as background, Hooman, Toyota acquired Beach Toyota in 2008, whom and also acquired the former Cadillac site and two adjoining properties that Redondo Avenue on Wall Street for nearly $17 million in 2013. Cost to reconstruct and remodel. Two of the properties are estimated at $8.4 million, bringing total project costs of nearly $25 million. Reconstruction of the former course Cadillac site are underway. Since 1996, Beach Toyota was a party to a retail sales tax incentive agreement with the city, and that agreement was amended to expire in September of 2013. The sales tax base for the expired agreement was $135,000, pardon me, in November 2013, whom and Toyota approached the city seeking to reinstate the expired retail sales tax incentive agreement to assist in offsetting costs related to the relocation and reconstruction project. Staff brought forward this request to the City Council on October 21st, 2014. Raised the base from 135000 to 270000, above which sales tax revenues can be shared. It is estimated that over the 15 year term of the retail sales tax incentive agreement, that the city will save approximately $8 million in whom and Toyota will receive approximately $4 million. In order to protect the existing businesses in Long Beach, preserve and grow jobs within the city and enhance future city revenues. Staff request that City Council conclude the public hearing and authorize the city manager to enter a sales tax sharing agreement with Taylor Automotive. And this concludes my report and answer questions. Before I go back to the council and close the hearing. Is there any public comment? Seeing none. Councilwoman Pryce. Okay. So just making the motion the second of the motion to be comments. Now, councilman Mongo. Our community has been so excited for this new location. I know that the construction has taken quite a long time, but this new location will bring a lot of opportunity to the city in terms of an expanded array of opportunities of different types and brands of cars that you'll be able to purchase. And so while it has been quite a wait, it will be worth the wait. We're excited to make this again another opportunity for more jobs and more revenue to the city. So excited about this opportunity. Thank you. Councilmember Brown. I just had a question for staff. You mentioned it, but I just wanted clarification here. This this item came before council and on October 21st, I believe, was the date you gave. And that is six months prior to the special election where and after which I took office. So I had nothing to do with this item. Okay. That's correct. Okay. I will not be supporting it tonight. Thank you. Okay. Thank you. There's motion on the floor. Members, please cast your votes. Motion carries eight one. Okay. Thank you. Next, we're on to our final hearing of the night, which is the continuation of the budget hearing. Some turn this over now to Mr. West.