Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy associated with the First Amendment to Sales Tax Incentive Agreement No. 32583 with Cabe Brothers, a California corporation, pursuant to California Government Code Section 53083; and Authorize City Manager to execute all documents necessary to implement the First Amendment to Sales Tax Incentive Agreement No. 32583 with Cabe Brothers, a California corporation, for the expanded Toyota dealership located at 2895 Long Beach Boulevard. (District 6)
A report from Economic and Property Development and Financial Management recommendation to receive supporting documentation into the record. Conclude the public hearing regarding an economic subsidy associated with the First Amendment to sales tax incentive agreement with Kay Brothers pursuant to California Government Code Section 53083 and authorize the City Manager to execute all documents necessary to implement the First Amendment to sales tax incentive agreement with Kay Brothers for the expanded Toyota dealership located at 2895 Long Beach Boulevard, District six. This hearing requires no case. Let's first do the oath. Anyone going to be? If you ever speak on this hearing, please stand. 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. Thank you. I'm going to turn this over to our staff. Thank you, Mr. Mayor. The staff report be given by Mike Conway, our director of Economic and property development. Mayor Garcia, members of the City Council. This hearing is for an amendment to a sales tax sharing. Agreement with K Brothers Toyota, who are located at 2895 Long. Beach Boulevard. In 2009 came Cabe began a significant expansion project to their dealership, investing over. $6.3 million in both public and private improvements. The project improvements. Were LEED certified and included an 80 panel solar. Photovoltaic voltaic. Renewable energy system. CABE And the city entered a sales tax sharing agreement in 2011, providing a cap of $1 million. In shared sales tax over a 15 year period. The analysis of the economic gap between the $6.3 million cost of the expansion and the financial. Payback revealed a need to increase the cap. In order to achieve economic parity. With other sales tax sharing agreements. Staff recommends increasing the cap to $3 million or approximately half of the cost of the expansion. This is similar. To the agreements with both Worthington, Ford and Hooman Toyota. Additionally, since the expansion began in 2009. Staff proposes to change the sales tax. Base from 2010 to 2009, which would reduce the base from 221000 to 170000. Lastly, the 15 year term is proposed to restart as of January 1st, 2016. It's anticipated that over the 15. Year term of the agreement. Cable generate $10.8 million. In sales tax, with Cabe receiving 3 million and the city. Receiving approximately 7.8 million. This amended sales tax sharing agreement is intended. To ensure that Cabe. Can adequately compete in this dynamic market and continue to provide over 100 existing jobs. And this concludes my report, and I'm available for questions. Thank you. Let me take this over back to the council. Councilman Andrews? Yes. Thank you, Mayor. First of all, I'd like to thank Troy Toyota and his support, you know, for the important business here in Long Beach. And it's important business, especially in the sixth District. You know, they have continued to make Long Beach their home. And I am one of the largest, you know, which we find as one of the largest, you know, tax sales revenues in the city of Long Beach. So I find that this is a win win situation. And I want to thank them again. Thank you very much. Thank you. There's a motion and a second. Any public comment on the hearing at this time? Casey, no public comment on the hearing. Members, please go ahead and cast your votes. Hearing number two. Its conceptual motion carries. Okay. Thank you. Next up, we have concert calendar. Item number six has been pulled. So if I can get a motion for three through 13, please. There's a motion and a second. Any public comment on either item three through 13 except for item six, please come forward.