CITY COUNCIL STAFF REPORT
MEETING DATE: JANUARY 25, 2017
PREPARED BY: John Lang, Economic Development Coordinator/Community Development
APPROVED BY: City Manager
TITLE
INCENTIVE AGREEMENT WITH MORGAN HILL REAL ESTATE LLC, FOR THE ESTABLISHMENT OF A NEW AUTOMOBILE AGENCY AT THE AUTO MALL PLANNED DEVELOPMENT SITE ON CONDIT ROAD
END
RECOMMENDATION(S)
RECOMMENDATION
Adopt resolution authorizing the City Manager to execute an Incentive Agreement, consistent with the Auto Dealer Economic Development Strategy, with Morgan Hill Real Estate LLC for a new automobile dealership at the Auto Mall Planned Development Site on Condit Road; and make findings of consistency with Section 53083(a)(6)(b) of the Government Code (AB 562).
BODY
COUNCIL PRIORITIES, GOALS & STRATEGIES:
Ongoing Priorities
Maintaining fiscal responsibility
2016 Focus Areas
Developing Our Community
Planning Our Community
REPORT NARRATIVE:
In February of 2002, the City Council authorized an auto dealer assistance program as part of an Auto Dealer Economic Development Strategy. The strategy sought to take a proactive role to identify and entitle appropriate locations for new auto dealerships, as well as marketing and attracting new car sales agencies to the City. A component of the "Strategy" offers auto dealers incentives to locate and or expand in Morgan Hill if it can be demonstrated that there is a need for assistance and a significant benefit to the community. Building partnerships with the private development community has always been at the core of the City's auto strategy to advance development plans.
In 2003, the City utilized this program to provide assistance to the Ford Store. The 2003 agreement with the Ford Store was satisfied in 2013. The Ford Store exceeded all previous sales tax expectations and remains one of Morgan Hill's top sales tax generators. In 2005, Morgan Hill went further to secure the City's future as a regional location for auto dealer sales by adopting ...
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