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. 32687 with Alant Corporation, dba Circle Porsche Audi, a California corporation, pursuant to California Government Code Section 53083; and
Authorize City Manager, or designee, to execute all documents necessary to implement the First Amendment to Sales Tax Incentive Agreement No. 32687 with Alant Corporation, a California corporation, for the expanded Circle Porsche and Audi dealership located at 1855 North Lakewood Boulevard. (District 4)
DISCUSSION
On December 13, 2011, the City Council authorized the execution of Sales Tax Incentive Agreement No. 32687 (Agreement) with Alant Corporation (Alant). The intent of the Agreement was to support an expansion and redevelopment project that included renovation of the existing Audi dealership located on Lakewood Boulevard, and expanding its operations by acquiring and renovating an adjacent 1.44-acre property for a separate Porsche dealership. The primary structure of the Agreement is that 50 percent of sales tax generated by the dealership beyond an established base-year amount is shared with Alant for a fixed period of time, or until achieving a set numerical cap. The base-year amount under the Agreement is $294,465. Under the Agreement, the sales tax incentive is to be provided by the City of Long Beach (City) from 2011 to 2022 or upon the City paying Alant $2.5 million within the same period, whichever comes first.
Alant is now completing an expansion of its Circle Porsche/Audi dealership. Expansion costs have been determined to be in excess of $9.22 million. The project includes a new Porsche showroom, new parts and service department for the Porsche dealership, and a new storage lot. To support the expansion of the dealership and retain the dealership in Long Beach, Alant has requested additional economic rel...
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