City Council
MEETING DATE: 6/14/2017
TITLE:
Title
First Amendment to the Tax Sharing Agreement with Palm Springs Motors, LLC
End
FROM:
Leisa Lukes, Business Development Manager
RECOMMENDATION:
Recommendation
Staff recommends the City Council conduct a public hearing under Municipal Code Title 3, Chapter 3.46 and adopt a Resolution making findings and authorize an Amendment to the Sales Tax Sharing Agreement between the City and Palm Springs Motors.
Body
BACKGROUND:
Cathedral City Municipal Code Chapter 3.46 provides for economic incentive payments to a qualifying retail business in order to incentivize the expansion or renovation of that business upon determination by the City Council that providing such payments would enhance the quality of the facilities, goods, and services available to the public and the City's residents; that it would result in a desirable and attractive shopping experience; and that it would increase sales tax revenue to the City. Palm Springs Motors, LLC (Applicant), comprised of Ford, Lincoln, and Mazda brands, is requesting to amend an existing Sales Tax Sharing Agreement between the City and the Applicant to extend the length of time in which sales tax sharing will occur and to increase the amount of shared tax payments to be received by the Applicant in support of the renovation and expansion of the Mazda facility. The original Agreement was approved in 2012 to assist the Applicant in its ability to expand the Lincoln facility and to provide the Lincoln manufacturer with assurance of the City's support of that brand. The result has been an improved Lincoln showroom in Cathedral City; retaining this location as the only Lincoln dealership in the Coachella Valley; and general enhancements to the Ford customer service area and building fa?ade. The benefit to the City has been an overall increase in sales tax flow to the City generated by the dealership.
Similarly, the currently proposed improvements and Appli...
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