HomeMy WebLinkAboutPN Automotive, LLC - 2016-07-18 (2) CITY OF HUNTINGTON BEACH
INTER-DEPARTMENTAL COMMUNICATION
Office of Business Development
4
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
VIA: Fred A. Wilson, City Manager
FROM: Ken Domer, Assistant City Manager
Kellee Fritzal, Deputy Director, Business Development
DATE: August 15, 2016
SUBJECT: Sales Tax Sharing Agreement between the City of Huntington
Beach and PN Automotive, LLC
It is recommended that the City Council continue the-Administrative Public Hearing regarding the
Sales Tax Sharing Agreement between the City of Huntington Beach and PN Automotive, LLC.
We are ensuring that the requestor, PN Automotive and John Patterson, closes escrow on the
purchase of the Subaru Dealership prior to the consideration of the Agreement. Accordingly, we
are recommending that Agreement be moved to a date uncertain, subject to all required notices to
be undertaken prior to its reconsideration.
Please contact either Kellee Fritzal or myself if you have any questions or concerns regarding the
Agreement or continuance. I am available at (714) 536-5236 and Kellee is available at
(714) 374-1519.
NT7iv G_6t 70 /9- +�'4�"�r' �)c-�Tom-/�
HB -361- Item 16. - 1
f �
CITY OF HUNTINGTON BEACH
INTER-DEPARTMENTAL COMMUNICATION
Office of Business Development
i
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
VIA: Fred A. Wilson, City Manager
FROM: Ken Domer, Assistant City Manager
Kellee Fritzal, Deputy Director, Business Development
DATE: August 1, 2016
SUBJECT: Sales Tax Sharing Agreement between the City of Huntington
Beach and PN Automotive, LLC
It is recommended that the City- Council continue the Administrative Public Hearin regardina
the Sales Tax Sharing Agreement. We are ensuring that the requestor, PN Automotive, Jolyn
Patterson, has closed escrow on the purchase of the Subaru Dealership, prior to the consideration
of the Agreement. The new City Council hearing will be August 15, 2016.
Please contact either Kellee Fritzal or myself if you have any questions or concerns regarding the
Agreement. I am available at (714) 536-5236 and Kellee is available at (714) 374-1519.
HB -855- Item 13. - I
t
' CITY OF HUNTINGTON BEACH
_ INTER-DEPARTMENTAL COMMUNICATION
Office of Business Development
TO: HONORABLE MAYOR AND CITY COUNCILMEMBERS
VIA: Fred A. Wilson, City Manager
FROM: Ken Domer, Assistant City Manager
Kellee Fritzal, Deputy Director, Business Development
DATE: July 18, 2016
SUBJECT: Sales Tax Sharing Agreement between the City of Huntington
Beach and PN Automotive, LLC
It is recommended that the City Council open and continue the Administrative Public Hearing
regarding the Sales Tax Sharing Agreement. The requestor, PN Automotive, John Patterson, is
out of town and could not make it back in time for the City Council Meeting. The new City
Council hearing will be August 1, 2016.
Please contact either Kellee Fritzal or myself if you have any questions or concerns regarding the
Agreement. I am available at(714) 536-5236 and Kellee is available at (714) 374-1519.
HB -651- Item 24. - 1
;7/-7
NOTICE OF PUBLIC HEARING
Pursuant to Section 53083(a)(6)(b) of the California Government Code(AB 562), the City of Huntington
Beach shall provide public notice and a hearing prior to granting of proposed economic development subsidy.
NOTICE IS HEREBY GIVEN that the City of Huntington Beach will hold a public hearing in the Council
Chambers of the Huntington Beach Civic Center, 2000 Main Street on Monday July 18, 2016 at 6:00
p.m., unless otherwise changed by the City Manager, to consider the following item:
Applicant: PN Automotive, LLC: John Patterson, President
Project Location: 16800 Beach Boulevard, Huntington Beach, California 92648
Agreement:
The City of Huntington Beach desires to create jobs and employment within the City. The City has the ability to
implement the provisions of AB 562, a statewide economic development tool passed by Governor Brown in late
2013 for the purpose of allowing local jurisdictions to induce economic development for the creation and
maintenance of jobs. The City of Huntington Beach and PN Automotive are proposing to enter into an
agreement that encourages the creation of a new Subaru dealership within Huntington Beach. The City is
proposing to provide financial assistance in the form of an economic development subsidy to PN Automotive as
described in the Operating Covenant Agreement. Pursuant to Section 53083 of the California Government
Code (AB 562) the following information will be posted on the City's Web Site.
1) The name and address of all corporations, or any other business entities, except for sole proprietorships,
that are the beneficiary of the economic development subsidy, if applicable.
PN Automotive: John Patterson, President, a California Corporation, 16800 Beach Boulevard,
Huntington Beach, California 92648
2) The start and end dates and schedule, if applicable, for the economic development subsidy.
Commencing approximately August 1, 2016 for 20 years.
3) A description of the economic development subsidy, including the estimated total amount of expenditure of
public funds, or of revenue lost to, the local agency, as a result of the economic development subsidy.
The proposed Operating Covenant Agreement provides for participation of revenues generated from
PN Automotive operations within the City with the City of Huntington Beach. The Agreement provides
that PN Automotive will retain 30% of revenues generated to the City over$25,000,000; payment will
be made on a quarterly basis. It is estimated, that PN Automotive will generate approximately
$500,000 per year to the City in revenue. Based upon this estimate, PN Automotive is projected to
receive approximately$75,000 per annum and the City approximately$425,000 per annum.
4) A statement of the public purposes for the economic development subsidy.
To continue to expand and enhance economic opportunities for businesses in the City, continue to
expand the City's employment base, and continue to generate hereinafter defined Sales Tax that the
City can utilize to fund general governmental services such as police, fire, street maintenance, and
parks and recreation programs.
5) Projected tax revenue to the local agency as a result of the economic development subsidy.
The City of Huntington Beach will receive approximately$425,000 per year in sales tax revenue.
6) Estimated number of jobs created by the economic development subsidy, broken down by full-time,
part-time and temporary positions.
The City and PN Automotive have estimated that the Agreement creates 40 full time jobs in the City.
Part time jobs created will be determined. The construction Project will create 50 full-time positions.
All interested persons are invited to attend this hearing and express opinions upon the items listed above.
The Operating Covenant Agreement is available for review at Huntington Beach City Hall from July 5,
2016 through July 18, 2016. Any written materials to be submitted to the City Clerk at least twenty-four (24)
hours prior to the hearing City of Huntington Beach, 2000 Main Street, Huntington Beach, CA 92648. Further
information on these items may be obtained at the City of Huntington Beach, Attn: Kellee Fritzal, Deputy
Director Business Development, 2000 Main Street, Huntington Beach, .CA 92648 or by telephone: (714) 374-
1519.
PUBLISHED: Orange County Register July 7, 2016
POSTED AT CITY HALL AND ON CITY WEB SITE: July 1, 2016
NOT=OF Ptl'IBl.1G HEARING
P .t o-Se n 5.108,3(a)f.6jibi of the CaIi I,ornfa Gov e1nMenI Cod la ,A B 5562).the O'w-1
au n B -:hwfl provide public rictic'e arA a heara'g r-iicr to grantinq;f proposed
a mic oar.,c: men subsidy.
NOTICE 1S .i PF�Y GIVEN that the City ,f H'untifLg1on'each will hcid a p � �e ate;in
,.e a's of the f untir:�,+,on Beach Ciu d Center, 2COG Main St;ee.on`.' ua
Juli ,. 2s'1 ai 6:01rt p.m., -urriess o:herense chapped by Erie Ci,y Marl w. 'p Co i-e 1ha
W -_
'wart: ,v-=m-:ve, LLC:John Patterson.Prnsidont
Pr t Lc a :tF r Beach Souleva.G, Huntin„ton Beach,California 92648
The C_ Hllnnir-giOn Beach desires to c'pate jot}s and ern;loymen:trf t'in;the Gibe. The
City riw. MU a- y.y to ulemen,iPa o ovr�Sicns Of AS 562. a 5taM.°ico economic deve cp-
m c y,�o ern r Brown in late 2013 for the furrow of allowing local jurisdlc-
d _ evel p-nent for,Me creation an.o maintenance of lobs. The City
,q as.and Ply Auiomvive are Q'ropicsi'nc7 to antes into an a ree°me'nt that en-
ccu a,les t re -seat i, sf a, new dealerslhi p within Huntington Beach, The City is
wropoSing^,`o r Qn ial assistance in the infm Ot art 2,wonornic a-ffveiopmer=t srubsicy
to PN i uaomQ ve a5-eazribe'c In the Cperatintj Covenanl Aq,reement. Pursuant to Sava",
E-3C&3 01 th±r CaLA" lia GO-eerwtr font Coca tMB S62i th'e fco%winq informa?ion will be;posted
on the Ciiyr°s viec 5;ita.
j r t r '•:frv:ss of all!Cr."rpera idr5.or any aches s�e�sina5s er�Giti2sr ew,col,for so e
r"tat are 1hp beneoiciary of tha ec',onc-mic d4ny'oloorinent subsidy-d:ref' -f ca-
�r PN -!Qhri Paw'?r: n, Prt°Si 2b1G, a CaIiiG.mta C+,7rper'alacn, 16aOO Beach,
E ran P _.n t- i B43aC;r,California,92646
2i'Ttte start a.c --ic Cxe ar, sche.dule.if applicable,for the eccilcmfc Gevgfil ^ 'unB'rt sub'-
San/'
C rester ray a or xf at iy Au uNI' 2015 for 24 years-
3 i A _ ^" Iho oorlom,iC cevelco-meat Swbsidy, iinr_Iuidino, the est-rflated €
am ri of public lunds, or rl revenue lost to,;hE local a;gene®,as a result
cf Me =.,e ent sub sidV.
T 11.3 : Cl Co rabnq Cotenant Agreement' provicut for Car.lcp-aton of r�`.'enues
'- F Aux-ri c'uwo c erat cns within the City with `he City C1 Hum rii
Bea h.yT A.Gr_t =,e, ;.wives that PN Avtomotive will twain 317``al of e;<�r=uTs
$2S.44t�.4 0; 7.ayment wiff be made on.a auare,1y b sis.11 fs
G-S...-, i4. Ina., .,,r':-C-Y 'trEl C:e nefate aCrprOximatEty 5C-O'X"i per gees t�3 C'ty`
't tenLe- Ba5ed uolon mis e mate, PN AuWmrotive i5 proie=d r e=-Q
aGF,rf rr t i a ZIZii,a-,nt n and the Clty apargximately a425,OW per anintT^1.
of A slmti;fn — g- pcim-s 1,nr;ra eC Gnomic deve11 pme t siubslcy.
To rLnt r__ �xp dnteeo tvnes- oo, fc -urinesses.in Ule 0
cC1tln4e rpeiDand he Cfly's err:Cioymer1 case, anj c--minva *o peatera€e 1.14retrlt.ror
Irt_od S Tax r r .^ C._ c n u"Iire'a fund gene.at'4 v$n:mentat serve-zes-su- t as
;f '. —a2 rr r-zrce,and perS ariu r9C'Q3ti4n prpgrarts,
Ei Prole,- 7o tt., local a,er y as a result of!ne ecorcrsic dowel n;rner su -
sidy
The Gf1F cl +-r,SP Gem ' r.'I recdlve approximately 5425,.090 per' yex fr:,sales =ax
rerFrue.
5)eutl?ra:e" num!be ,=N-s eater by':rte economic,development subisily.er-ker ay.-
by li m par titre and telm;c-..ark position"
�Ay'a,r„ PE'i Aurom-..tive have-esi,!n'�a.Efl that the A,,^yfeement creates 40 lull tlr"°e i-ir,a
in the City- Part trt--- Irabs cirealeu will cc, Cetermiinpd. The corztructa n Pryje4'.'w-1
craa E 50 e,uft-time poi-tc',nc„
n l -eres,ed are invited ;o Vend this hearing and express ociniona uac-n the
items li5tr'tC'abo-ve.
Thy. C arat;inq Covenant A,reemeni is available for,rcRyritrw at Humin ton Beach C-,y Hal
'rom Jul€-,'5.20161h"xrourp,.h Julie 18, '2016, Anywdttiert materials too,be s't.r�rnitted to the Ctv
Clark at ;sas, twe�rtiplcuf (24) hours p'nor to the h w'!tLAf'in Cil%/Of HUTItiln,ton Beach, 2t01a
Main Street, Hun dn,zlion Beach,CA 9'",848. Fur1l7er'ln1ornsaGian earl these.ter s may Oe a,--
,a-.nea as the City of Hwn inG(�t�cn Uali�:h Awl,: i�tt lee Friitzal„Oepuiti Dirrevor gus mess Devil-
oprrent,42000 f�stiai �1r �.L,I�urtttrt tw n Beach,, .CA 921648 Ir by Geiienhcino: ( e4)r,4-1513-
Puoi shecr Tbol Oraance County Plejgisler Juwu'y 7,20118 t,0179008
�pOC REGISTER
Ord,. GEQU ADVERTISING
P 714.796.6764
�il,dl�udl t f F. 704. '7- 7►2
C^
r.
From: Estanislau, Robin [mailto:Robin.Estanislau(�Osurfcity-hb.org]
Sent: Friday, July 01, 2016 1:11 PM
To: David Ward
2
Esparza, Patty
From: David Ward [DWard@ocregister.com]
Sent: Friday, July 01, 2016 1 A6 PM
To: Estanislau, Robin
Cc: Esparza, Patty; Fritzal, Kellee
Subject: RE: Late Public Hearing Submittal -- Publication Deadline June 30 @ 11:00 AM
Sorry for the delay in getting the proof to you.
Some of us (and I was one of the "lucky" ones) had our entire system go down during a brief power outage!!!
My system is back up and here is the proof
I am heading out to lunch real quick.
I'll be back in an hour
Ad#10179008
Run Date 7/7
Cost$932.16
PROOF
1
AFFIDAVIT OF PUBLICATION PROOF OF PUBLICATION
STATE OF CALIFORNIA, )
SS.
County of Orange ) ' NOTICE OF PUBLIC HEARING
Pursuant to Section 53083(a)'(6)(b)of the California Government Code(AB 562);the City of
I am a citizen Of the United States and a resident Huntington Beach shall provide public notice and a hearing prior to granting of proposed
economic development subsidy. .
of the Count aforesaid• I am Over the age Of NOTICE IS HEREBY GIVEN that the City of Huntington Beach will hold a public hearing in
y g the Council Chambers of the Huntington Beach Civic Center,2000 Main Street on Monday
July 18,2016 at 6:00 p.m.,unless otherwise changed by the City Manager,-to consider the
eighteen years, and not a party to or interested in following item:
Applicant:PN Automotive,LLC:John Patterson,President
the above entitled matter. I am the principal clerk Project Location:16800 Beach Boulevard,Huntington Beach.California 92648
Agreement: - -
Of The Oran a Count Re ister, a The City of Huntington Beach desires to create jobs and employment within the City.The
g y g news a er 1> 1> City has the ability to implement the provisions of AB 562,a statewide economicdevelop-
ment tool passed by Governor Brown in late 2013.for the purpose of-allowing local 1'urisdic-
of eneral circulation, ublished in the cit of lions to induce economic development for the creation and maintenance of jobs.The City
g 1> y of.Huntington Beach"and PN Automotive are proposing to enter into an agreement that en-
courages the creation.of a new Subaru dealership within Huntington Beach. The City is
Santa Ana Count Of Orange and which news- proposing to provide financial assistance in the form of an economic development subsidy
y g > to PN Automotive as described in the Operating Covenant Agreement.Pursuant to Section
53083 of the California Government Code(AB 562)the following information will be posted
paper has been adjudged to be a newspaper of on the City's Web Site.
1)The name and address of all corporations,or any other business entities,except for sole
general circulation by the Superior Court Of the preprietorships,that are the beneficiary of the economic development subsidy,if applica-
bb PN Automotive: John Patterson, President, a California Corporation, 16800 Beach
County of Orange, State of California, under the Boulevard,Huntington Beach,California 92648
2)The start and end dates and schedule,if applicable,for the economic development sub-
date of November 19, 1905, Case No. A-21046, Commencing approximately August 1,2016 for 20 years.
3)sid,A description of the economic development subsidy; including the estimated total'
amount of expenditure of public funds,or of revenue lost to,the local agency,as a'result
that the notice, of which the annexed is a true of the economic development subsidy.
The proposed Operating Covenant Agreement provides for participation of revenues
generated from PN Automotive operations within the City with the City of Huntington
printed copy, has been published in each regular each. The Agreement provides that PN Automotive will retain 30% of revenues
generated to the City over$25,000,000;payment will be made on a quarterly basis.It is
estimated,that PN Automotive will generate approximately$500,000 per year to the City
and entire issue Of said newspaper and not in any in. revenue. Based upon this .estimate, PN Automotive is projected to receive
approximately$75,000 per annum and the City approximately$425,000 Per annum.
4)A statement of the public purposes for the economic development subsidy.
supplement thereof on the following dates, to To continue to expand and enhance economic opportunities for businesses in the City;
continue to expand the City's employment base,and continue to generate hereinafter
defined Sales Tax that the City can utilize to fund general governmental services such!as
wit: police,fire,street maintenance,and parks and recreation programs.
5)Projected tax revenue to the local agency as a result of the economic development sub-
sidy.
The City of Huntington Beach will receive approximately$425,000 per year in sales tax
revenue. .
6)'Estimated number of jobs created by the economic development subsidy,broken down
July 7,2016 by full-time,part-time and temporary positions. -
The City and PN Automotive have estimated that the Agreement creates 40 full time jobs
in the CiN. Part time jobs created will be determined. The construction Project will
create 50 ull-time positions. -
"I certify (or declare) under the penalty Of All interested persons are invited to attend this hearing and express opinions'upon'the'
items listed above. -
perjury under the laws Of the State Of California The Operating Covenant Agreement is available for review at Huntington Beach City Hall
The
July 5,2016 through July18,2016. Any written materials to be submitted to the City.
Clerk at least twenty-four'(24)hours prior to the hearing City of Huntington Beach,2000
that the foregoing 1S true and Correct": Main S treat
,Huntington'Beac ,CA 92648. Further information on these items may be ob-
tained at the C�Mty of HuntingHton Beach,Attn:Kellee Fritzal,Deyputy Director Business Executed at Santa Ana, Orange County, Publ shmented000 Oara'te CounN1Rea steBJuly T 2016 10189008 telephone:(714)374-1519. <
California, on
Date: July 7,2016
Signature
The Orange County Register
625 N.Grand Ave.
Santa Ana,CA 92701
(714) 796-2209
AFFIDAVIT OF PUBLICATION PROOF OF PUBLICATION
STATE OF CALIFORNIA, ) NOTICE of Pusuc NEnRIPIo
SS. Pursuant to Section 53083(a)(6)(b)of the California Government Code(AB 562),the City of
Huntington.Beach shall provide public notice and a hearing prior to granting of proposed
County of Orange ) economic development subsidy.
the NOTICE IS HEREBY GIVEN that the Cityof Huntington Beach will hold a public hearing in
July Council
6C at hambers
of tun ass he tin ton iBe chap ivid Center,2000 Main Street on Monday
1 am a Citizen Of the United States and a resident following item: P gad by the City Manager,to consider the
Applicant:PN Automotive,LLC:John Patterson,President
of the County aforesaid; I am over the age of Project Location:16800 Beach Boulevard,Huntington Beach,California 92648 -
Agreement:
eighteen years, and not a party to or interested in The City of Huntington Beach desires to create jobs and employment within the City.The
men tool pass has the ed by Goto v
ernor Brohe Provisions wn in late 2013f AB forr the urposeeofide allow economic
calaunsd develop-
ment above entitled matter. I am the principal clerk tions to induce economic development for the creation and maintenance of joys.�ne city
of Huntington Beach and PN Automotive are proposing to enter into an agreement that an.
courdges the creation of a new Subaru dealership within Huntington Beach. The City is
of The Orange County Register, a newspaper proposing to provide financial assistance in the form of an economic development subsidy
Automotive as described in the
5 83 of the California Govemm Operating Covenant Agreement:Pursuant to Section
of general circulation, published in the city of on the City's,We ent C
b Site. ode(AB 562)the following information will be posted
e name
Santa Aria, Countyof Orange, and which news- gia h etorships,dthat are the benefess of 11 c
Paryiof the economcr business deveopmentisubsdCeptfor sole
g a' or
plica-
PN Automotive: John Patterson, President, a California'Cor oration, 1 800 Beach
paper has been adjudged to be a newspaper of Boulevard,Huntington Beach,Californiae 92648 P
sidTyhe start and end dates and schedule,it applicable,for the'economic development sub-
general circulation by the Superior Court of the Commencing approximately August 1,2016 for 20 years.
3).- description of the economic development subsid including'the estimated total'
County of Orange, State of California, under the amount t e economic development re Of subs dy'or of revenue lost to,the local agency,as a result
The proposed Operating Covenant Agreement provides for Participation of revenues
date of November 19 1905 Case No. A-21046 generated from ee Automotive s that P within the City with the city of Huntington,
e , , - each: The Agreement provides that ay Automotive will retain 30% of revenues
generated to the City over$25,000,000;payment will be made on i quarterly basis,u is
that the notice, of which the annexed is a true in eve�d e. Ba Based Automotive
this Ilestimate,.a proximately$500,000 per year to the City
approximately$75,000 er annum and the Ci�a Automotive is projected to receive
A purposes ty approximately$425,000 Per annum.
printed copy, has been published in each regular 4 To statement fpth theand is purposes for the ecod enhance nomic development subsidy.
deficonned Salesnue to the�d the �s employment base,Opportunities
suer tougene ate here Waftsinesses in the er
and entire issue of said newspaper and not In an dY can utilize to fund general governmental services such as
y )police,fire,street maintenance,and parks and recreation programs.
aid
Pr acted tax revenue to the local agency as a result'of the economic development sub-
supplement thereof on the followingdates, to TTyy
revehnue i�of Huntington Beach will receive approximately$425,000 per year in sales tax
wit: 6)Estimated number of jobs created by the economic development subsidy,broken down
by full-time,part-time and temporary positions.
crThe City and PN Automotive have estimated that the Agreement creates 40 full time jobs
the City.'Part time jobs created will be determined. The'construction Project will
create 50 full-time positions.
July 7 2016 All interested persons are invited to attend this hearing and express opinions upon the
items listed above."
The Operating Covenant Agreement is available for review at Huntington Beach City Hall
from July 5,.2016 through luly 16,2016. Any virtten materials to be submitted to the City
1 certify Or declare under the penalty Of clerk at least twenty-tour(24)hours prior to the hearing City of Huntington Beach,2000'
y ( ) Ii )' Main'Street,Huntington Beach CA 92648. Further Information on these dams may be ob
tained at the CiMty of HuntinggHton Beach,Attn:Kellee Fritzal,Deyputy Director Business Devel`
perjury under the laws of the State of California Publ shed�Tfie pavan to Cour�untiRne t steBJul h7 2016�0489008 telephone:(714)374-1519.
that the foregoing is true and correct":
Executed at Santa Ana, Orange County,
California,on
Date: July 7,2016
`_1 j
Signature
The Orange County Register
625 N.Grand Ave.
Santa Ana,CA 92701
(714)796-2209