TITLE
Recommendation to authorize City Manager to execute all documents necessary to implement a 15-year Sales Tax Incentive Agreement with HTL Automotive, Inc., dba Hooman Toyota of Long Beach, for the relocation and development of a Toyota dealership to be located at 3399 East Willow Street. (District 5)
DISCUSSION
Approval is recommended to enter into a Sales Tax Incentive Agreement (Agreement) with HTL Automotive, Inc., dba Hooman Toyota of Long Beach (Hooman) to support the relocation and development of a Toyota dealership located at 3399 E. Willow Street. In 2008, Hooman acquired Beach Toyota located at 4401 Pacific Coast Highway, which included a Sales Tax Incentive Agreement, which expired in September, 2013. In order to expand and continue operation in the City of Long Beach, Hooman has acquired the former Coast Cadillac property at the northwest corner of Redondo Avenue and Willow Street. It is the intention of Hooman to relocate its Toyota dealership to the Willow Street location and has requested that the expired Sales Tax Incentive Agreement be renewed to assist in the costs of acquisition and renovation of the site.
On March 17, 1992, the City Council approved a Sales Tax Incentive Program (Program) to encourage large-scale development, stimulate private investment in the retail sector, and enhance sales tax revenue to the City of Long Beach (City). New or existing retail businesses planning to expand, that generate more than $5 million in taxable sales, may be eligible for the Program. For expanding businesses, the City may agree to share up to 50 percent of the sales tax generated in excess of a predetermined sales tax base.
In 1992, the City Council approved a Sales Tax Incentive Agreement with Beach Toyota which included a sharing of sales tax above a base of $135,000. Since 2008, when Hooman acquired Beach Toyota, sales tax revenues have been consistently and significantly above the base amount, providing benefits for both the City a...
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