TITLE
Recommendation to receive supporting documentation into the record, conclude the public hearing regarding an economic subsidy associated with the First Amendment to Sales Tax Incentive Agreement No. 32583 with Cabe Brothers, a California corporation, pursuant to California Government Code Section 53083; and
Authorize City Manager to execute all documents necessary to implement the First Amendment to Sales Tax Incentive Agreement No. 32583 with Cabe Brothers, a California corporation, for the expanded Toyota dealership located at 2895 Long Beach Boulevard. (District 6)
DISCUSSION
On May 10, 2011, the City Council authorized the execution of Sales Tax Incentive Agreement No. 32583 (Agreement) with Cabe Brothers (Cabe). The intent of the Agreement was to support expansion and improvements at Cabe’s Toyota dealership located at 2895 Long Beach Boulevard. The primary structure of the Agreement is that 50 percent of sales tax generated by the dealership beyond an established base-year is shared with Cabe for a fixed period of time, or until achieving a set numerical cap.
Cabe has completed the extensive expansion and remodel of its Toyota dealership, which now totals over 31,000 square feet over three blocks along Long Beach Boulevard. Expansion costs have been determined to be in excess of $6.3 million. The recently completed project includes a brand new Service Center, service reception area and customer lounge, ten additional service bays and car wash, parts retail center, wholesale offices and parts warehouse, a new 8,000 square-foot vehicle showroom, AND AN expanded vehicle display area and detail center. The project is LEED-certified with energy-efficient fixtures and an 80-panel solar photovoltaic system. Additionally, the project includes resurfacing with new asphalt, decorative concrete, landscaping, and planters.
While the improvements have been implemented, and Cabe reports that sales have benefited from the expansion, there are certain p...
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