TITLE
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 Worthington Ford Inc., pursuant to California Government Code Section 53083;
Authorize City Manager to execute all documents necessary to effect the Second Amendment to Lease No. 24823 between the City of Long Beach and Worthington Ford, Inc., to extend the term of the ground lease to September 23, 2030, including one five-year option to extend the term to September 23, 2035, for the use of 3.24 acres of land at the Lakewood Boulevard off-ramp at an annual rental rate of $1 per year; and
Authorize City Manager to execute all documents necessary to implement a Retail Sales Tax Incentive Agreement with Worthington Ford, Inc., to assist in financing the renovation of the electronic display sign located at 2601 Lakewood Boulevard. (District 5)
DISCUSSION
On June 25, 1996, the City Council approved Lease No. 24823 (Lease) between the City of Long Beach (City) and Worthington Ford, Inc. (Worthington), for use of City-owned property at 2601 Lakewood Boulevard (Premises) for the construction and maintenance of an electronic display sign (Sign). On June 22, 2008, the City Council approved an extension of that lease to September 23, 2020, with no options to extend.
Ground Lease
The Premises is a 3.24-acre parcel located adjacent to the Lakewood Boulevard off-ramp of the southbound I-405 Freeway. Limited access and isolation preclude other commercial uses of the Premises, but make it ideal for an electronic display sign. The value of the Premises as undeveloped was determined by Valentine Appraisal & Associates in January 2008 to be $248,000 or roughly $2.10 per net square foot. Applying a 3 percent annual appreciation rate, the value of the Premises in January 2015 is estimated at $305,000. At the standard 8 percent annual rate of return on land value, rent for the Prem...
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