7C New Business 2000 0306 - Laserfiche WebLink

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• • Ford Land Development Company 3 February 29, 2000 1111 Marina Boulevard The Agency's proposed assistance is: • A total cap of$3 million in assistance. • An annual payment to the dealership only after sales tax to the City of over$277,000 is achieved. • An annual payment based on one-half of the amount of sales tax received over the $277,000 base amount (i.e., if the new dealership generates $500,000 in sales tax in a given year, that year's Agency assistance would total $111,500 [$500,000 - $277,000 = $223,000/2 = $111,500]). • The dealership would have 20 years in which to recoup the $3 million in assistance. The benefits of Agency participation include: • Retaining a key business in the City and assisting it to expand. • Relocating Chovanes will enhance that business, as well as allow San Leandro Hospital to expand. This expansion is also key to retaining the hospital. • Redeveloping a key site on Marina Boulevard that has been vacant for over three years. • Providing assistance only on a portion of the net new taxes generated,which provides the City with revenue to undertake key initiatives. • $3 million in assistance over time is the equivalent of providing $1.6 million in cash today. • Funds will be paid out only after new revenue is flowing to the City (i.e., there is no up-front assistance). • Locating a Ford dealership at the Marina Square Auto Center will enhance the sales and success of all of the other dealerships along Marina Boulevard, generating additional sales tax for the City. Since approval of the MOU last November,Ford has moved forward with development of a site plan and building elevations. Staff has reviewed the conceptual plans and presented the project to the community at a February 17 neighborhood meeting. Following that meeting, the project was presented to the Planning Commission on February 24, for informal design review. 33