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Home My WebLink About2002 025 CC RESO2002 025 CC RESO¹òw @˜ÖRESOLUTION NO. 2002-025 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BALDWIN PARK APPROVING THE SALES TAX SHARING AGREEMENT BY AND BETWEEN THE CITY OF BALDWIN PARK AND THE CITY OF EL MONTE WHEREAS, Section 33426.7 of the California Health and Safety Code requires the City of El Monte to provide the City of Baldwin Park with notice of its intention to provide financial assistance to assist LPT Vehicles, Inc., a California Corporation Developer") in the development of a new Saturn automobile dealership an undertaking which will result in the relocation of its existing Saturn automobile franchise from the City of Baldwin Park to an area located within the City of El Monte's territorial boundaries; and WHEREAS, Section 33426.7 of the California Health and Safety Code further requires the City of El Monte to present the City of Baldwin Park with an agreement that apportions the sales tax generated from the automobile dealership after relocation using the following formula: The annual amount of assistance shall be subtracted from the annual sales tax. The difference shall be divided equally between the two communities for the first ten 10) fiscal years following the relocation. However, in no event shall the City of Baldwin Park receive more sales tax than it received from the automobile dealership in the fiscal year preceding the relocation. After the first ten 10) years following the relocation, the contract shall terminate and the apportionment shall end, unless, the contract by both communities; and WHEREAS, the foregoing notwithstanding, Section 33426.7(e)(4)(B) allows the parties to enter into another agreement acceptable to both communities," meaning that the parties may devise an alternative method of apportioning the sales taxes generated by the relocated Saturn franchise. WHEREAS, the City of El Monte and the City of Baldwin Park have agreed on a lump sum payment of $190,000, pursuant to certain terms and conditions. WHEREAS, the parties have negotiated a Sales Tax Apportionment Agreement Agreement"), attached and incorporated herein as Exhibit" A"; and WHEREAS, Agreement referenced above, must be approved by a two-thirds majority vote of the Baldwin Park City Council before it may be presented to the City of El Monte. BIB] 37425-U01 2002-U02 025-U02 CC-U02 RESO-U02 LG1-U03 LI3-U03 FO8417-U03 FO8678-U03 DO8813-U03 C6-U03 RESO-U03 03/13/2002-U04 ADMIN-U04 2002 025 CC RESO¹òw @˜ÖResolution No. 2002-025 Page 2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF BALDWIN PARK AS FOLLOWS: SECTION 1. The City Council hereby approves the Sales Tax Apportionment Agreement in substantially the form attached hereto. SECTION 2. The Chief Executive Officer is authorized to execute the Agreement. SECTION 3. The City Clerk shall certify to the adoption of this Resolution and shall cause the same to be processed in the manner required by law. PASSED, APPROVED AND ADOPTED on this 20^ay of February, 2002. ATTEST; STATE OF CALIFORNIA COUNTY OF LOS ANGELES ss. CITY OF BALDWIN PARK I, Rosemary M. Ramirez, Chief Deputy City Clerk of the City of Baldwin Park, do hereby certify that the foregoing resolution was duly and regularly approved and adopted by the City Council of the City of Baldwin Park at an adjourned regular meeting of the City Councii held on February 20, 2002, by the following vote: AYES: COUNCILMEMBERS: NOES: COUNCILMEMBERS: ABSENT: COUNCILMEMBERS: Marten Garcia, Ricardo Pacheco, Mayor Pro Tern Gair and Mayor Lozano None Bill Van Cleave ABSTAIN: CQUNCILMEMBERS: None RosemarylvT Ramirez, CMC Chief Deputy City Clerk BIB] 37425-U01 2002-U02 025-U02 CC-U02 RESO-U02 LG1-U03 LI3-U03 FO8417-U03 FO8678-U03 DO8813-U03 C6-U03 RESO-U03 03/13/2002-U04 ADMIN-U04 2002 025 CC RESO¹òw @˜ÖEXHIBIT A" EL MONTE'S STAFF REPORT EXHIBIT A" BIB] 37425-U01 2002-U02 025-U02 CC-U02 RESO-U02 LG1-U03 LI3-U03 FO8417-U03 FO8678-U03 DO8813-U03 C6-U03 RESO-U03 03/13/2002-U04 ADMIN-U04 2002 025 CC RESO¹òw @˜ÖCITY OF EL MONTE CITY COUNCIL- Formeetmgofnccembcr IS. 2001 TO; MAYOR AND COUNCIL MEMBKRS i FROM: HAROLD 0. JOHANSON. CITY MANAGER r- x SI'lUECT: SALES TAX APPORTIONMENT AGREEMENT rAGREEMEhnn \Wl I THE CITY OF BALDWIN PARK l-'OR THE RHLOCATfON Ol-' THK SATYRS AUTOMOBILE FRANCHISE B»cligr6«nd: U'P Vehicles.Inc. has proposed to relocate 10 theCily of El Monte iq develop and construct new Saturn dealership sates and service facility Project") in the Downtown El Monte Redevelopment Project acca. The proposed dealership location is at the intersections of Peck Road and Stcwart Street. The proposed Project involves the relocation of the Saturn Fpnchise from its current location in the Chy orBaldwin Park to the Cay of El Monte City"). The El Monte Conwunily redevelopment Agency AgencyTl intendsto provide financial assistance related to the relocation and development of the Project. The City is required by Section 33426.7 ofthe California Community ReaevdoptBeot Law to apportioa SEalcsTaoc with the City of BaldwmPaA that E]^i^wffl receive as a rcsuh of the rctocaiion. Specifically Section 33426.7 requires 6wt if flw Agency intectt to provide financial assistance and that the relocation would occur in the same market area and county, the City must apportion the net sales tax cquaBywith theChy ofBaldwin Park. The net safes tax is dctcnninedhysublractB^ the annual amount of assistance fruTDtne annual safes tax; theshare apportioned to the City of Baldwm Park. may nol exceed Hs sales lax receipts from the year preceding the relocation of the SaUttn kaiership. The apponioomcrt is to be in a form of an agreement that is oftercd to the Gty of Baldwin Park for its consideration. RSGII impact: When Ac Agreement has been executed and approved by the City ofHaldwin Park, the City of El Monte will be required.to pay the City of Baldwin Park approximately 527,500 per year for 10 years, or El Monte and Baldwin Park may negotiate a one-time payment of approximately $170,000 calculated on a discounted basis over 10 years at 10%). The exact amount owed is subject to Satwn's sates perfonnances in the City of Baldwin Park in the fiscal year prior to the dealer^ relocation. The City of-EI Monte fc expected to receive over the same ten-year period the net present value amount of approximately $922,000, subject to vehicle sales and the economy. RecommeQdation: That ihc Council: 7 1. Adopt Resolution No. approving the Sales Tax Apportionment Aja-eerncnl with the City of Baldwin Park; and 2. Authorize the City Manager, or his dcsignee, to execute the final Agreement, 01 a fonn approved by the City Attorney, and transmit the Agreement lo the City of Baldwin Patk For its consideration. EXHIBIT A" BIB] 37425-U01 2002-U02 025-U02 CC-U02 RESO-U02 LG1-U03 LI3-U03 FO8417-U03 FO8678-U03 DO8813-U03 C6-U03 RESO-U03 03/13/2002-U04 ADMIN-U04