HomeMy WebLinkAbout1972-02-08; City Council; 662; Tri-City Auto Dealer Association AgreementTHE CITY wF CAR L S B A D, C A L I F'O R N I A
Agenda Bill NO. k6a
Referred To:
Date: February 8, 1972
Subject: Submi tted By: Tri-City Auto Dealers Association Agreement City Manager
Statement of the Matter
In concurrence with prior City Council action, an agreement has been drafted formalizing the City's participation in the Auto Center project.
Exhibit
Proposed agreement.
Staff Recommendations
--
. AB NO. 662 Date: February 8, 1972
City Manager's Recommendation
Adopt proposed agreement or modification thereof (Resolution).
Counci 1. Action
2-15-72 It was agreed that this matter be continued to the next regular meeting to allow all parties concerned an opportunity to review said agreement.
3-7-72 It was agreed by the Council that this matter be continued until the meeting of March 21, 1972, in order to allow the City Manager to review the City's fiscal position as to funds available for this project.
3-21-72 Res. 1972 respecting location in the City of Auto Dealer Complex was adopted. It was pointed out that a provision not contained in the originally proposed resolution statee that if the Tri-City Auto Dealers Assoc should indicate a need for facilities beyond the ability and capacity of the City to construct, the City Council indicates its willingness to enter into a future reimbursable agreement with the Association. The Auto Dealers have agreed that they will assist in the financing of road construction under these terms if it is agreeable with the City.'
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RESOLUTION NO. 1972
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF CARLSBAD RESPECTING LOCATION
IN THE CITY OF AUTO DEALER COMPLEX.
WHEREAS, the Tri- City Automobile Dealers Association desires to
locate an auto center in the City of Carlsbad, and
WHEREAS, said facility is a distinct asset to the City in that it provides
substantial non-property tax revenues generated from the sales tax on
vehicles and parts, and
WHEREAS, it is in the best interest of all the residents of the community
to provide City assistance to this desirable commercial development, and
WHEREAS, the Tri-City Auto Dealers Association is desirous of re-
ceiving City participation in the form of street and utility improvements, and,
WHEREAS, the City under the general laws of the State of California is
authorized to provide such assistance.
NOW, THEREFORE, let it be resolved as follows:
1. The City shall construct a major arterial street shown on the select
system of highways between Cannon Road and Palomar Airport Road, including
curbs, gutters, center divider, storm drains, sewer, sidewalks, street
lights, and all other normal necessary appurtenances.
2.
3.
City shall cause to be installed water and sewer lines in said road.
These public facilities are to be installed on an incremental basis
utilizing the construction portion of the City’s 2107 Gas Tax Funds and Sales
Tax derived from the activities of the Tri- City Automobile Dealers Association
Provided that, it is understood that any commitment to use gas tax funds and
sales tax revenue shall be subject to all laws and regulations pertaining to such
use.
4. The City and the Association contemplate that the aforementioned faciliti
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shall be funded from the sales tax revenue made available to the City by
development of the auto center, and that any gas tax money allocated to this
project shall be fully replaced by sales tax revenue which shall be received
by the City from the activities of the Association at the newly developed com-
plex.
5. The purpose and intent of these assurances shall be to generate new anc
additional revenue for the City through the location of the car dealers within
the City of Carlsbad.
benefit of the general public of the community and to the car dealers as well.
All such additional revenue to be received by the City upon completion of and
payment for the road and related facilities, will be made available for general
municipal purposes to the welfare and benefit of all residents of the communit:
Such revenue shall be expended on a major street to the
6. It is contemplated by the City and by the Association that the present
development schedule calls for the commencement of business by two automo-
bile dealerships in December of 1973, one dealership in July of 1974, two
dealerships in December of 1974, and one dealership in December of 1975.
7. In coordination with the aforementioned development schedule, the City
anticipates construction of one- half the road improvements from Cannon Road
to Palomar Airport Road and related appurtenances in fiscal year 1973- 74;
construction of the remaining one-half of the road between Cannon Road and
Palomar Airport Road and related appurtenances, if any, in fiscal year 1974-
75. If funds for such construction are not available to the City, funding shall
be provided as set forth in paragraph 8 hereinbelow.
8. In the event the schedule outlined above is moved forward to 1972, the
City will perform the first part of the project in fiscal year 1972- 73 if there
are funds available.
74.
gin construction by rough grading of a particular site in 1972 or before June
The second stage would be moved forward to fiscal 1973-
If there are not funds available, and the Dealers, or any of them, will be-
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1973, the Dealers will construct the road, curbs, gutters; install lights,
sewer, storm drain and water lines; and fund the project.
for public use, the road and all improvements and utilities thereon from year
tayear for an annual rental payable in equal monthly installments, in advance.
The City will lease:
The lease rental will be set at a figure which will reimburse the dealers for
expenditures in funding the project.
Dealers that no profit or loss will be realized by the Dealers in funding the
project.
not exceed the rate available for commercial projects of a similar nature.
no event shall the City be obligated to lease payments in excess of those per,
mitted by Section 18 Ar ticle XI of the Constitution. Actual interest rate and
all other details of the lease agreement, including option provision, provided
for in this Resolution shall be subject to the approval of the Tri-City Automobi
Dealers Association and the City of Carlsbad.
It is the intention of the City and the
The Dealers agree that any interest they pay on borrowed funds will
In
a) The City will receive an option to purchase the road and all im-
provements thereon which option price shall be keyed to the cost of the
construction of the road and improvements thereon and installation of
utilities therein or thereunder and the cost of financing same.
shall remain in effect for three years following completion of the road.
The option
b) Payment of the purchase price shall not obligate the City to any debt
in excess, in any one year, of the limits prescribed by Section 18, Article
XI, of the Constitution and the source of payment will be sales tax revenue
and gas tax money made available to the City.
self to use such sales tax and gas tax funds to complete payment within two
The City will obligate it-
years from date of purchase if such funds are received by the City and pay-
ment will not place the City outside the said Constitutional provisions.
9. The purpose of this Resolution is to indicate the desire of the Carlsbad
City Council to cooperate in securing the location of an auto center in this
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community, to generate new sources of income for the city, and touse such
new income to assist in the providing of public facilities to the site for the
benefit of the public and for the auto center alike.
that such cooperation shall be implemented in the planning of 1972-73 budget
appropriations and future budget appropriations subject to available revenues.
It is further intended that all provisions of this Resolution are subject to com-
pliance with the Constitution and the Laws of the State of California, that this
Resolution shall in no way be construed to constitute an obligation of the City
to appropriate funds beyond those legally available in any single budget year
prior to adoption of that year’s budget.
It is the council’s intention
10. This Resolution shall become effective upon receipt by the City of a
written approval of the terms and conditions stated herein by the Tri-City
Automobile Dealers Association.
11. The City shall be responsible for normal maintenance for all completec.
facilities referred to herein.
PASSED, APPROVED AND ADOPTED at a regular meeting of the City
I City derk
I Council of the City of Carlsbad, California, held March 21, 1972, by the
following vote, to wit:
AYES: Cmn. Dunne, McComas, Jardine and Lewis.
NOES: None.
ABSENT: Cmn. Castro..
I of Carlsbad.
ATTEST: I
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