TITLE
Recommendation to authorize City Manager to execute all documents necessary for the First Amendment to Lease No. 24823 between the City of Long Beach and Worthington Ford, Inc., to permit the continued operation of a refurbished and upgraded electronic display sign at 2601 Lakewood Boulevard, at an annual rental rate of $1 for a term of ten (10) years; and (District 5)
Authorize City Manager to execute all related documents to implement a $200,000 loan with a 12-year term to Worthington Ford, Inc., with monthly interest only payments for the first seven years and the entire loan amortized over the remaining five years at a fixed interest rate of four percent per annum; and authorize City Manager to make the necessary budget appropriations and adjustments related to the loan. (Citywide)
DISCUSSION
Worthington Ford, Inc. (Worthington Ford) has been located at 2850 Bellflower Boulevard since 1974 and consistently has been a major sales tax generator for the City of Long Beach. Current economic conditions have presented a major challenge to the auto industry and have impacted car dealer revenues. To counter the downward pressure on sales, Worthington Ford has made an investment in upgrading a freeway sign that not only is expected to augment sales, but will significantly reduce energy consumption. Worthington Ford is requesting an extension of the land lease for the sign and financial assistance in the form of a loan from the City. These proposed actions will help to assure the viability and retention of a major car dealer in Long Beach. The City will have use of at least 20 percent of the display time to promote its activities.
On June 25, 1996, the City Council approved Lease No. 24823 (Lease) between the City of Long Beach (Lessor) and Worthington Ford, Inc. (Lessee), for the construction of an electronic automotive message sign on City-owned property at 2601 Lakewood Boulevard. The lease site is situated within the Lakewood Boulevard off ramp loop of ...
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