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interest in acquiring part of the vacant property on the Training Center site to provide additional automobile storage and parking area for the new dealerships. The Agency brokered a three - parry OPA whereby GM sold the Developer part of the required vacant property. GM then sold the remaining portion of the Training Center site to another division of GM, which is currently building a large dealership on the site. That dealership will house a Pontiac/GMC franchise. The activity on Marina Boulevard also attracted Ford Motor Company. The existing Ford franchise in San Leandro, Chovanes Ford, was sold to a larger Ford dealer and is now in the process of being relocated to the former Safeway food plant site, investing millions of dollars in new improvements. The Agency assisted in the transaction by structuring a "land write -down." A write -down is a way of providing financial assistance to a potential property owner. The Agency closes the gap between the fair market value of the land and the land price necessary to make the transaction successful. In this case, the land cost $3 million more than was financially feasible for the transaction. So the Agency agreed to repay the Ford dealership that $3 million over the course of several years. The annual payments are calculated based on the amount of sales tax that the new Ford dealership generates above and beyond the sales tax numbers that Chovanes Ford has generated. The benefit of this transaction is that the City receives the sales tax and the Agency uses the property tax increment to pay Ford. So the Agency undertakes the costs, and the City's General Fund reaps the benefit. In 1999, the Developer approached the Agency with a desire to locate a new dealership, Daewoo, on Marina Boulevard. The Developer also wanted to move the growing Kia dealership out of the building it shared with Hyundai and locate it on a separate site to increase sales. These new dealerships would require the assemblage of vacant and unused parcels owned by private parties. The Developer acquired one parcel formerly used as an auto junkyard. The Developer attempted to buy these properties in private transactions but was unsuccessful. On June 19, 2000, the Agency adopted a Memorandum of Understanding with the Developer to acquire these unused properties and convey them to the Developer. The Agency also adopted Resolutions of Necessity to acquire those parcels. At the same time, the Developer negotiated a private transaction to acquire the Buss automotive property, which sits in the middle of former Christopher and Tosco parcels and is necessary to complete assemblage of the site. The owners of the Buss property worked closely with the Agency and the Developer to negotiate a fair price for the land and at the same time to reap the tax benefits that can accrue to a property owner when property is sold under the power of condemnation, namely deferral of capital gains tax. At the present time, other than the properties that are currently the subject of the eminent domain proceedings, there are no other vacant parcels on Marina Boulevard. The remaining properties to the freeway are occupied by existing businesses. Some of those properties are on the market, while others are owned by businesses that have no immediate plans to sell or relocate. Accordingly, if the Agency desires not to use its authority to acquire occupied parcels, the private market will have to continue the auto mall development. Given the level of interest in locating dealerships on Marina Boulevard in recent years, it is likely that the private market can 3