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. 32687 with Alant Corporation, dba Circle Porsche Audi, a California corporation, pursuant to California Government Code Section 53083; and Authorize City Manager, or designee, to execute all documents necessary to implement the First Amendment to Sales Tax Incentive Agreement No. 32687 with Alant Corporation, a California corporation, for the expanded Circle Porsche and Audi dealership located at 1855 North Lakewood Boulevard. (District 4)
Thank you. We are going. We are doing the next hearing, though it should be quick. So we are going to do hearing nine and it'll be our last item for the evening. So. Madam Kirk. Item nine Report from Economic Development 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 Ashland Corporation pursuant to California Government Code Section 53083 and authorize City Manager to execute all necessary to implement the agreement with Allen Corporations for the Expanded Circle Port and Aldi dealership located at 1855 North Lakewood Boulevard District four. And this is required of. I have and I do have a motion by Councilmember Super now and Councilman Allen. Mm. Do you want to do both? Yes. You and each of you do solemnly state that the testimony you may give in a court now and pending before this body shall be due to the whole truth and nothing but the truth, so help you God. I mean, conservative stuff for short. Thank you. Yes, we have a couple of things you have to read in the record. Johnny Vallejo or acting director of economic development will do that. Thank you, honorable mayor. Mayors, members of the city council. This hearing is for an amendment to sales tax incentive agreement. 32687. With the corporation doing business a circle for Audi located 1855. In 2011, City Council authorized a sales tax incentive agreement circle Porsche Audi. The agreement supporting an expansion redevelopment project that included renovation of the existing Audi dealership and expanding its operations by acquiring and renovating an adjacent 1.44. Acre property. For a separate Porsche dealership. The initial sales tax incentive establish a 50% share of annual local sales and use tax above a base of $294,465 through 2022, or upon reaching a cap of $2.5 million, whichever came first. The corporation is undergoing a significant expansion of the dealership, which includes a new showroom, new parts and service department and an additional storage lot. Kaiser Marston Associates, the city's fiscal advisor, estimates. Estimates of the expansion project cost will total $9.22 million and have an annual feasibility gap of $338,000 in support of expansion, investment and retention of this Long Beach business ALONG Corporation has requested an extension of the terms of their initial sales tax incentive agreement. The proposed amendment would retain the same terms with the city and continuing to share 50, 50, 50 of the annual local sales and use tax generated above the base amount through December 2032, or upon a lot receiving $2.5 million from their share of local sales and use tax, whichever comes first. Based on current projections, the cumulative total of local sales tax generated during the ten year term of the proposed agreement is estimated to be over $10.1 million. With these new improvements of this amount, a maximum of $2.5 million will be paid to A1, while the city would receive the expected 7.6 million in excess of that amount. The proposed agreement will retain and strengthen the position of this local business preserve 87 existing full time jobs, and create approximately 18 additional full time jobs. Thank you. And this concludes my staff report. Thank you. Is there any public comment at there? Any members of the public they would like to speak on item nine and person, please. Can I put the podium in zoom please use the raise hand feature now. We do have one person in Zim. Your time starts now. Can you please unmute yourself? That concludes public comment. Okay. So there's no clever comment on that. Can't come from of any comments. That was. That was super. I'm sorry. You're right. That was customer super now. It says, okay, this is awesome. So I'll just say. I appreciate my colleague's support. This is an iconic business. We appreciate them staying in Long Beach and as just been an iconic. Dealership. As a traffic circle for over 50 years. Thank you, Councilman Allen. Yes, I agree. And my previous life, I had the opportunity to work with both of those dealerships. And it's you know, it's hard to get a dealership to stay when they're inner city and so and not on a freeway. And so I absolutely support this. It's good for for the city and it's good for our taxes. So thank you very much and happy to support. Thank you. There's a motion and a second. We'll do the roll call vote, please. Councilwoman Cindy has. Councilwoman Tandy has campaigned. Councilwoman Allen. All right. Councilwoman Price. I. Councilman Sabina I. Councilwoman Mongo. I. Catwoman Sierra I. Councilmember Muranga. Councilman Austin. I. Vice Mayor Richardson. Yes. The motion is carried ater. Thank you. That concludes the agenda. I do. We do have general public comment. Is there a second general anybody to speak at there?