HomeMy WebLinkAboutHuntington Beach Automobile Dealers Association - 2009-10-19..� , 7-Z,, L:
Council/Agency Meeting Held:/DM� O
Deferred/Continued to:
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Council Meeting Date: 10/19/2009
Departme Number: ED 09-31
CITY OF HUNTINGTON BEACH
REQUEST FOR REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE CHAIRMAN AND AGENCY EMBERS
SUBMITTED BY: FRED A. WILSON, EXECUTIVE DIRE
PREPARED BY: STANLEY SMALEWITZ, DEPUTY EXE TIVE DIRECTOR
SUBJECT: Approval of Loan and Grant Request from the Huntington Beach
Automobile Dealers Association, Inc.
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
Transmitted for your consideration is a request by the Huntington Beach Automobile Dealers
Association, Inc. (Auto Dealers) for a loan of $226,893 and a grant of $30,304.30. The loan
will be secured with a promissory note with 2% simple interest, paid by the Auto Dealers
through annual BID assessments.
Funding Source:
Appropriations from the unreserved/undesignated Fund Balance in the Merged Project Area
Debt Service Fund (407) totaling $226,893, and Merged Redevelopment Agency Capital
Projects Fund totaling $30,304.30.
The Fiscal Impact Statement is attached (Attachment #3).
Recommended Action: Motion to:
1. Approve the Loan Agreement between the Huntington Beach Automobile Dealers
Association and the Redevelopment Agency of the City of Huntington Beach in the
amount of $226,893;
2. Authorize Chairman and Agency Clerk to sign and execute the Loan Agreement;
3. Appropriate $226,893 from unreserved/undesignated Fund Balance in the Merged Project
Area Debt Service Fund (407); and
4. Approve payment of a grant and appropriate $30,304.30 from the Merged
Redevelopment Agency Capital Projects Fund Balance.
REQUEST FOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: 10/19/2009 DEPARTMENT ID NUMBER: ED 09-31
Alternative Action(s):
1. Do not approve the loan or grant and direct staff to re -negotiate the terms.
Analysis:
In 1992, the Huntington Beach Automobile Dealers Association, Inc. (Auto Dealers)
requested assistance from the Redevelopment Agency (Agency) for construction of an
electronic reader board sign adjacent to the 405 Freeway and Center Avenue. The loan, in
the amount of $361,000, was a forgivable loan based on the increased sales tax generated
by the auto dealers. The Auto Dealers also formed the Huntington Beach Auto Dealers
Business Improvement District (BID) to pay for the maintenance and operations of the
reader board. The Auto Dealers were designated as the governing body of the BID, which
consists of ten auto dealerships within the City. In 2004, the Auto Dealers requested a
second loan of $474,000 to be used to upgrade the reader board to a full color screen
using LED technology. The Auto Dealers have made monthly payments on the loan
through assessments on the BID. A final payment of $1,393 is due October 2009.
On July 16, 2009, the Auto Dealers submitted a request for financial assistance from the
Agency in the form of a loan and a grant (Attachment #2). A significant drop in auto sales
over the past year has made it difficult for the BID to continue to pay for deferred
maintenance and on -going operations of the reader board. The Agency proposes that the
final payment of the 2004 loan of $1,393 be folded into the new Loan Agreement. The total
amount of the loan will not exceed $226,893. The annual payout of $45,378.60 per year,
for five years, will be used to pay for the annual maintenance and operating costs for the
reader board sign including: electricity, maintenance, programming, and data transmission
over the next five years. If approved, loan payments will begin six months after execution
of the Agreement. Payments will be made from the BID's annual assessments in monthly
installments of $397.69 per dealer. The loan will be secured with a promissory note with
2% simple interest. The proposed terms of the loan are as follows:
• Total Loan Amount: $226,893;
• Annual Payout:
Year One 2009-2010
$45,378.60
Year Two 2010-2011
$45,378.60
Year Three 2011-2012
$45,378.60
Year Four 2012-2013
$45,378.60
Year Five 2013-2014
$45,378.60
• Agency can terminate the loan at any time
after the first year;
• Interest Rate: 2% simple interest;
• Term: Five Years;
• First payment due six months after the Agreement is executed;
• Payments will be made monthly thereafter through BID assessments; and
• Final payment of the existing 2004 loan (approximately $1,393) will be rolled in to
the loan amount.
.2. 10/12/2009 2:36 PM
REQUEST FOR REDEVELOPMENT AGENCY ACTION
MEETING DATE: 10/19/2009 DEPARTMENT ID NUMBER: ED 09-31
Without the loan, the Auto Dealers will be unable to continue operations of the reader board.
This sign is a vital tool for directing customers to the dealerships located along Beach
Boulevard. These dealerships generate over $3.4 million in annual net sales tax revenue to
the City of Huntington Beach, or about 15% of the City's total sales tax revenue.
The Auto Dealers have also requested the Agency's assistance in the form of a $30,304.30
grant to help pay for required maintenance on the reader board sign. The sign was first
constructed in 1992 and was last refurbished in 2004 when the Auto Dealers upgraded the
electronic display to full color LED technology. The sign is once again in need of required
maintenance to improve the appearance of the sign. If approved, the grant will be used to
pay for painting the sign ($11,643); replace lettering on the static displays ($9,706); and
replace panels on the tri-vision louvers ($8,955.30). Details of the repairs may be found in
Attachment D of the Auto Dealers letter. The Auto Dealers' sign stimulates economic growth
within the City and provides a venue to advertize community services and events.
Strategic Plan Goal: Enhance Economic Development.
Environmental Status: Not applicable.
Attachment(s):
1. I Loan Agreement
2. Huntington Beach Auto Dealers letter dated July 16, 2009
3. 1 Fiscal Impact Statement
-3- 10/12/2009 2:36 PM
ATTACHMENT #1
LOAN AGREEMENT
THIS LOAN AGREEMENT (the "Loan Agreement") is made this / 9 day of
JCL 2009, by and between the HUNTINGTON BEACH AUTOMOBILE
DEALERS ASSOCIATION, INCORPORATED ("Borrower") and the REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body corporate and politic
(the "Agency").
RECITALS
A. Borrower is a corporation formed pursuant to the California Nonprofit Mutual
Benefit Corporation Law as a mutual benefit corporation whose members
include active dealers of automobiles and entities associated with the
automobile industry.
B. Pursuant to Borrower's request the City Council of the City of Huntington
Beach establish an improvement area as authorized by the Parking and
Business Improvement Law of 1989, codified at California Streets &
Highways Code §36500 et seq., and on August 17, 1992, the City Council
adopted Resolution No. 6415 declaring its intention to establish a parking and
business improvement area to be known as the Huntington Beach Auto Dealers
Business Improvement District ("District").
C. The City Council subsequently enacted Ordinance No. 3175, which added
Chapter 3.52 to the Huntington Beach Municipal Code ("HBMC"). HBMC
Chapter 3.52 authorizes the City to collect a monthly benefit assessment from
all businesses within the District that are classified by the City as Class A
Retail Sales (Al), Auto, New, Used, Parts businesses.
D. Borrower's members are all businesses located within the boundaries of the
District and subject to the monthly assessment collected by the City pursuant
to Chapter 3.52. Borrower serves as an advisory body to the District and
makes recommendations to the City Council on the expenditure of revenues
derived from the assessments, on the classification of businesses, and on the
method of levying the assessments.
E. Borrower and the Redevelopment Agency of the City of Huntington Beach
("Agency") entered into a" Disposition and Development Agreement" (the
"DDA") and pursuant to the terms of the DDA, the Agency assisted Borrower
in the construction of an electronic Readerboard by providing Borrower with a
construction -financing grant that was repaid by virtue of increased sales taxes
generated by Borrower. Pursuant to the terms of the DDA, the construction -
financing grant for the Readerboard has now been forgiven.
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F. On May 13, 2004, Borrower and Agency entered into a new Loan Agreement
to convert the existing electronic Readerboard to a double -face full color LED
electronic display. A balance of $1,393.00 remains on this loan.
G. Borrower wishes to borrow and Agency wishes to lend a new amount of
$45,378.60 per year for five years to pay maintenance and operating costs for
the electronic reader board. The total amount loaned by the Agency over five
years shall not exceed $225,000 which is added to the existing balance from
the prior loan for a total amount not to exceed $226,893.00.
Paid out annually:
October 1, 2009
$45,378.60
October 1, 2010
$45,378.60
October 1, 2011
$45,378.60
October 1, 2012
$45,378.60
October 1, 2013
$45,378.60
Receipts for expenses to be sent to the Agency.
H. In the event the City Council decides it is not fiscally prudent to continue to
provide the $45,378.60 it may terminate this Loan Agreement at its sole
discretion after the first year, without incurring penalties or damages of any
kind. Borrower will remain liable for any unpaid amounts to the point City
terminates.
I. Borrower will repay the Agency's loan in monthly installments by virtue of an
increase in the monthly benefit assessment levied on its members and collected
by the City pursuant to Chapter 3.52. Borrower desires that the City remit that
portion of the monthly benefit assessment collected for six months by the City
from the District that is equivalent to the monthly installment due pursuant to
this Loan Agreement to the Agency until the loan is repaid in full.
J. In the event monthly installments are not made in full for any month during the
term of this Agreement, Agency may consider such action a material breach
and may terminate this Agreement with thirty (30) days notice in writing to
Borrower. Borrower will remain liable for any unpaid amounts to the point
Agency terminates.
NOW, THEREFORE, for good and valuable consideration the parties agree as
follows:
1. PARTIES TO THE AGREEMENT
The Agency. The Agency is a public body, corporate and politic, exercising
governmental functions and powers and organized and existing under Chapter 2 of the
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09-2185/38383
Community Redevelopment Law of the State of California. The principal office of the
Agency is located at City Hall, 2000 Main Street, Huntington Beach, CA 92648.
"Agency," as used in this Agreement, includes the Redevelopment Agency of the City
of Huntington Beach, and any assignee of or successor to its rights, powers and
responsibilities.
Borrower. Borrower is an incorporated non-profit mutual benefit corporation
whose members include active dealers of automobiles and other entities associated
with the automobile industry. The principal office and mailing address of Borrower
for the purposes of this Agreement is:
Huntington Beach Automobile Dealers Association, Inc.
7755 Center Drive, Suite 1100
Huntington Beach, CA 92647
2. TERMS OF LOAN
Agency agrees to provide a loan to Borrower under the terms and conditions of this
Loan Agreement.
3. AMOUNT OF LOAN
On and subject to the terms and conditions of this Loan Agreement, Agency agrees to
make, and Borrower agrees to accept, a loan in the amount of $45,378.60 per year for five
years, which shall be evidenced by a promissory note.
4. INTEREST
The note shall bear interest at the rate of 2% simple interest on the principle amount
outstanding from the date of the note until paid or forgiven.
5. REPAYMENT OF LOAN
Borrower shall repay the loan in monthly installments of ($3,976.93) beginning six (6)
months after the Borrower executes this agreement and continuing thereafter for five (5) years
until the entire amount is paid in full. (Attachment Amortization Table.) City shall collect
the monthly installment on behalf of Agency from Borrower by including the monthly
installment due under this Loan Agreement in the amount billed to Borrower's members
pursuant to HBMC Chapter 3.52, as amended. Borrower shall remit the monthly installment
due under this Loan Agreement as part of, and together with, the monthly benefit assessment
paid by Borrower's members pursuant to HBMC Chapter 3.52, as amended. The City shall
remit the monthly installment due hereunder ($3,976.93) and collected each month from
Borrower and/or Borrower's members pursuant to HBMC Chapter 3.52 to the Agency
pursuant to the terms of this Loan Agreement. All payment to Agency shall be directed /
mailed to P.O. Box 711, Huntington Beach, CA 92647.
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09-2185/38383
6. TERM OF THE LOAN
The loan shall commence on the date set forth above and remain in full force and
effect throughout the term of the loan. The Loan Agreement shall terminate upon full
repayment of the loan.
7. PREPAYMENT
Borrower may prepay the principal amount without penalty or fee.
8. PENALTY FOR DELINQUENT PAYMENT
Borrower and/or Borrower's members shall remit all amounts billed by the City
pursuant to this Loan Agreement and/or HBMC Chapter 3.52 within thirty (30) days of
receipt of the City's billing invoice. For failure to pay an amount billed when due, the City
shall add a penalty of five percent (5%) of the assessment amount on the last calendar day of
each month after the date due thereof, providing that the penalty amount to be added shall in
no event exceed one hundred percent (100%) of the assessment amount due. No City
business license shall be knowingly issued or renewed to any business that, at the time of
making application for any license or renewal thereto, is indebted to the City for any
delinquent benefit assessment.
9. GOVERNING LAW
The loan document shall be interpreted under and be governed by the laws of the State
of California.
10. ATTORNEY FEES AND COSTS
In the event of any default or any legal or administrative action is commenced to
interpret or to enforce the terms of the loan documents, each party shall bear its own attorney
fees and costs. The prevailing party in any such action shall not be entitled to recover any
attorney fees or costs in such action.
11. TIME
Time is of the essence as to this Loan Agreement and the Promissory Note loan
documents.
12. REPRESENTATIONS
Borrower represents to Agency that it has the requisite power and authority to execute
and deliver this Loan Agreement, and to perform its obligations under this Loan Agreement.
Borrower further represents that the Loan Agreement and the other documents either attached
hereto or required herein have been duly authorized, approved and executed by and on behalf
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09-2185/38383
of Borrower, and that the Loan Agreement is a valid and binding obligation of Borrower in
accordance with its terms. Borrower represents that the authorization, approval and execution
of this Loan Agreement and all other proceedings of Borrower relating to the transaction
herein contemplated, have been performed in accordance with all applicable federal, state, and
local laws.
Borrower further represents Borrower's members have authorized and approved a
$397.69 increase in the monthly assessment levied on Borrower's members pursuant to
HBMC Chapter 3.52 in furtherance of this agreement. Borrower hereby agrees to recommend
to the City Council that City remit the revenues collected as of April 2010 (6 months from
execution of Agreement) from Borrower's members to Agency in order to pay off the loan
according to the terms of this Agreement.
Any approval required under this Loan Agreement shall be in writing and executed by
an authorized representative of the party granting the approval. Notice, demands and
communications, formal notices, demands and communications between Borrower and
Lender shall be sufficiently given, if, and shall not be deemed to be given unless, dispatched
by registered or certified mail, postage prepaid, return receipt requested or delivered
personally to the principal offices of Borrower and Agency as follows:
Agency
Borrower
Redevelopment Agency of the City of Huntington Beach Automobile
Huntington Beach Dealers Association, Inc.
2000 Main Street 7755 Center Drive, Suite 1100
Huntington Beach, CA 92648 Huntington Beach, CA 92647
Attn: Executive Director
13. CALIFORNIA PREVAILING WAGE LAW
The City of Huntington Beach has ascertained from the Director of Industrial
Relations of the State of California the general prevailing rate of per diem wages and the
general prevailing rate for legal holiday and overtime work in the locality in which the work
of converting the Readerboard as contemplated by this Loan Agreement will be performed,
and the same has been set forth by resolution on file in the office of the City Clerk of the City
of Huntington Beach. Borrower and any person or entity hired by Borrower to complete the
work financed by this Loan Agreement shall pay not less than said prevailing wage rates to all
workers employed to convert the Readerboard as contemplated by this agreement, as required
by California Labor Code Sections 1771 and 1774.
14. BINDING UPON SUCCESSORS
All provisions of these loan documents shall be binding upon and inure to the benefit
of the heirs, administrators, executors, successors -in -interest, transferees and assigns of each
of the parties provided however that this section does not waive the prohibition on assignment
of this loan by Borrower without Agency's consent.
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09-2185/38383
15. ASSIGNMENT AND ASSUMPTION
Borrower shall not assign any of its interests under this Loan Agreement or the
Promissory Note to any other party, without the prior written consent of Agency which
consent may be withheld by Agency in its sole discretion.
16. WAIVER
Any waiver by Agency of any obligation in this Loan Agreement or the Promissory
Note must be in writing. No waiver will be implied from any delay or failure by Agency or
the City of Huntington Beach to take action on any breach or default of Borrower or to pursue
any remedy allowed under the Loan Agreement, Promissory Note, Loan Documents or
applicable law. Any extension of time granted to Borrower to perform any obligation under
this Loan Agreement or the Promissory Note shall not operate as a waiver or release from any
of its obligations under this Loan Agreement or the Promissory Note. Consent by Agency to
any act or omission by Borrower shall not be construed to be a consent to any other or
subsequent act or omission or to waive the requirement for Agency's written consent to future
waivers.
17. INTEGRATION
This Loan Agreement and the Promissory Note, including exhibits, executed by
Borrower if any, contain the entire agreement of the parties relative to the maintenance and
operations of the electronic Readerboard and supersede any and all prior negotiations.
18. OTHER AGREEMENTS
This is the sole and only loan agreement between Borrower and Agency. Borrower
represents that it has not entered into any agreements that are inconsistent with the terms of
this Loan Agreement. Borrower shall not enter into any agreements that are inconsistent with
the terms of this Loan Agreement without an express waiver by Agency in writing.
19. AMENDMENTS AND MODIFICATIONS
Any amendments or modifications to this Loan Agreement must be in writing, and
shall be made only if executed by both Borrower and Agency.
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09-2185/38383
20. SEVERABILITY
Every provision of this Loan Agreement is intended to be severable. If any provision
of this Loan Agreement shall be held invalid, illegal, or unenforceable by a court of
competent jurisdiction, the validity, legality,
shall not in any way be affected or impaired.
and enforceability of the remaining provisions
IN WITNESS WHEREOF, the parties hereto have caused this Loan Agreement to be
executed by and through their authorized offices the day, month and year first above written.
HUNTINGTON BEACH AUTOMOBILE
DEALERS ASSOCIATION, INC.
By
V- 79M M
print name��
ITS: (circa one)
ice President
REDEVELOPMENT AGENCY OF THE
CITY OF HUNTINGTON BEACH
a public body
Chairman
7
Agency Clerk J+V(0
By: l INITIATED AND APPROVED:
r
p ' !name
ITS: (circle one) Secretary/Chief Financial Office Asst. Deputy Executive lrector
Secretary Treasur r
PROVED AS TO FORM:
REVI ND APPROVED
Agency Counsel
Exe tiv Director 1
7
09-2185/38383
Redevelopment Agency Amortization Schedule
Huntington Beach Auto Dealers Association
Principal + 6 months interest 226,893.00
Number of Payments 60
Interest per month 0.001666667
Payment ($3,976.93)
Payment No.
Principle
Balance
Payment
Interest Paid
Principle Paid
---*Assessment
Per Dealer
$2,325.00
1
226,893.00
$3,976.93
$378.16
$3,598.77
$397.69
2
223,294.23
$3,976.93
$372.16
$3,604.77
$397.69
3
219,689.46
$3,976.93
$366.15
$3,610.78
$397.69
4
216,078.68
$3,976.93
$360.13
$3,616.79
$397.69
5
212,461.89
$3,976.93
$354.10
$3,622.82
$397.69
6
208,839.07
$3,976.93
$348.07
$3,628.86
$397.69
FY Total
$23,861.56
$2,178.76
$21,682.80
$2;386.16
7
205,210.20
$3,976.93
$342.02
$3,634.91
$397.69
8
201,575.30
$3,976.93
$335.96
$3,640.97
$397.69
9
197,934.33
$3,976.93
$329.89
$3,647.04
$397.69
10
194,287.29
$3,976.93
$323.81
$3,653.11
$397.69
11
190,634.18
$3,976.93
$317.72
$3,659.20
$397.69
12
186,974.98
$3,976.93
$311.62
$3,665.30
$397.69
13
183,309.67
$3,976.93
$305.52
$3,671.41
$397.69
14
179,638.26
$3,976.93
$299.40
$3,677.53
$397.69
15
175,960.74
$3,976.93
$293.27
$3,683.66
$397.69
16
172,277.08
$3,976.93
$287.13
$3,689.80
$397.69
17
168,587.28
$3,976.93
$280.98
$3,695.95
$397.69
18
164,891.33
$3,976.93
$274.82
$3,702.11
$397.69
FY Total
$47,723.11
$3,702.13
$44,02098
$4,772.31
19
161,189.23
$3,976.93
$268.65
$3,708.28
$397.69
20
157,480.95
$3,976.93
$262.47
$3,714.46
$397.69
21
153,766.49
$3,976.93
$256.28
$3,720.65
$397.69
22
150,045.84
$3,976.93
$250.08
$3,726.85
$397.69
23
146,318.99
$3,976.93
$243.86
$3,733.06
$397.69
24
142,585.93
$3,976.93
$237.64
$3,739.28
$397.69
25
138,846.65
$3,976.93
$231.41
$3,745.51
$397.69
26
135,101.13
$3,976.93
$225.17
$3,751.76
$397.69
27
131,349.38
$3,976.93
$218.92
$3,758.01
$397.69
28
127,591.37
$3,976.93
$212.65
$3,764.27
$397.69
29
123,827.09
$3,976.93
$206.38
$3,770.55
$397.69
30
120,056.54
$3,976.93
$200.09
$3,776.83
$397.69
FY Total
$47,723.11
$2,813.60
$44,909.51
$4,772.31;
31
116,279.71
$3,976.93
$193.80
$3,783.13
$397.69
32
112,496.59
$3,976.93
$187.49
$3,789.43
$397.69
33
108,707.15
$3,976.93
$181.18
$3,795.75
$397.69
34
104,911.41
$3,976.93
$174.85
$3,802.07
$397.69
35
101,109.33
$3,976.93
$168.52
$3,808.41
$397.69
36
97,300.92
$3,976.93
$162.17
$3,814.76
$397.69
37
93,486.16
$3,976.93
$155.81
$3,821.12
$397.69
38
89,665.05
$3,976.93
$149.44
$3,827.48
$397.69
39
85,837.56
$3,976.93
$143.06
$3,833.86
$397.69
40
82,003.70
1 $3,976.93
$136.67
$3,840.25
$397.69
Page 1
Redevelopment Agency Amortization Schedule
Huntington Beach Auto Dealers Association
Payment No.
Principle'Assessment
Balance
Payment
Interest Paid
Principle Paid
Per Dealer
41
78,163.45
$3,976.93
$130.27
$3,846.65
$397.69
42
74,316.79
$3,976.93
$123.86
$3,853.06
$397.69
FY Total
$47,723.11
$1,907.13
$45,81598
$4772.31
43
70,463.73
$3,976.93
$117.44
$3,859.49
$397.69
44
66,604.24
$3,976.93
$111.01
$3,865.92
$397.69
45
62,738.32
$3,976.93
$104.56
$3,872.36
$397.69
46
58,865.96
$3,976.93
$98.11
$3,878.82
$397.69
47
54,987.15
$3,976.93
$91.65
$3,885.28
$397.69
48
51,101.86
$3,976.93
$85.17
$3,891.76
$397.69
49
47,210.11
$3,976.93
$78.68
$3,898.24
$397.69
50
43,311.87
$3,976.93
$72.19
$3,904.74
$397.69
51
39,407.13
$3,976.93
$65.68
$3,911.25
$397.69
52
35,495.88
$3,976.93
$59.16
$3,917.77
$397.69
53
31,578.11
$3,976.93
$52.63
$3,924.30
$397.69
54
27,653.82
$3,976.93
$46.09
$3,930.84
$397.69
FY Total
$47,723.11
$982.36
$46,740.75
$4772.31
55
23,722.98
$3,976.93
$39.54
$3,937.39
$397.69
56
19,785.59
$3,976.93
$32.98
$3,943.95
$397.69
57
15,841.64
$3,976.93
$26.40
$3,950.52
$397.69
58
11,891.12
$3,976.93
$19.82
$3,957.11
$397.69
59
7,934.01
$3,976.93
$13.22
$8,963.70
$397.69
60
3,970.31
$3,976.93
$6.62
$3,970.31
$397.69
FY Total
$23,861.56
$138.58
$23,722°98
$2,386.16
Loan Totals
$238,615.56
$14,047.56
$226,893.00
$23,861.56
Page 2
PROMISSORY NOTE
Principal Loan Amount: $45,378.60 PER YEAR FOR A TOTAL AMOUNT OF $226,893
Interest: 2% simple interest
Note Date: October 12, 12009.
FOR VALUE RECEIVED, the undersigned ("Maker") hereby promises to pay to the order of the REDEVELOPMENT
AGENCY OF THE CITY OF HUNTINGTON BEACH, a public body, corporate and politic, exercising governmental functions
and powers and organized and existing under Chapter 2 of the Community Redevelopment Law of the State of California
("Holder"), at a place designated by Holder, the principal sum of (same as above) Two Hundred Twenty Six Thousand Eight
Hundred Ninety Three Dollars ($226,893) at the rate of two percent (2%) interest, pursuant to the Loan Agreement between the
Redevelopment Agency of the City of Huntin ton Beach and the Huntington Beach Automobile Dealers Association, Inc. (the
"Loan Agreement") dated as of October 1 � 12009 by and between Maker and Holder.
The Loan Agreement is hereby incorporated by reference as though fully set forth herein. Any capitalized terms not
defined herein shall have the meanings ascribed to them in the Loan Agreement. The obligation of the Maker to the Holder shall
be satisfied by Maker in monthly installments of $3,976.93 beginning on Apri 1 19, 2010 and continue thereafter
until the entire amount is repaid. Payments to the Agency as required by the Loan Agreement and this Note shall be made by
Maker by including the monthly installment due with the amount collected by the City of Huntington Beach pursuant to Chapter
3.52 of the Huntington Beach Municipal Code, as amended from time to time by the City Council of the City of Huntington
Beach.
In the event of default of the subsequent action to collect payment due under this note, the prevailing party in any such
action shall be entitled to recover any attorney fees or costs in such action.
Upon the forgiveness, waiver, and discharge of this Note as set forth above, Holder shall mark this Note "PAID IN
FULL" and shall deliver this Note to Maker.
1. Severability. The unenforceability or invalidity of any provision or provisions of this Note as to any persons or
circumstances shall not render that provision or those provisions unenforceable or invalid as to any other provisions or circumstances,
and all provisions hereof, in all other respects, shall remain valid and enforceable.
2. Modifications. Neither this Note nor any term hereof may be waived, amended, discharged, modified, changed or
terminated orally; nor shall any waiver of any provision hereof be effective except by an instrument in writing signed by Maker and
Holder.
3. Usury. Notwithstanding any provision in this Note, Deed of Trust or other document securing same, the total
liability for payment in the nature of interest shall not exceed the limit now imposed by applicable laws of the State of California.
4. Governing Law. This Note has been executed and delivered by Maker in the State of California and is to be
governed and construed in accordance with the laws thereof.
S. Prepayment. Maker may prepay the principal on this Note without penalty or fee.
1N WITNESS WHEREOF, Maker has executed this Note as of the date and year first above written.
► A,
HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOCIATION,
IN
By:
print name
(print name
ITS: (circle one) Secretary/Chief Financial Office Asst. Secretary Treasurer
09-2185/Promissory note Oct 12
ATTACHMENT #2
HUNTINGTON BEACH
AUTOMOBILE DEALERS
ASSOCIATION, INC.
Stanley Smalewitz,
Director Economic Development
2000 Main Street
Huntington Beach Ca 92648
Re: Follow-up to your series of meetings on:
Sections as follows:
A) Brief Historical Perspective /City Auto Dealer Relations —Local & Regional
B) Proposed Bella Terra based HB Car Store Lease (LOI) Attached as
C) Deferred Maintenance —HB Auto Dealers Reader Board Repairs
D) Request for Financial Assistance
Dear Stanley:
July 16, 2009
Thank you for your time on Thursday. It has taken several months to conclude our negotiations
with Bella Terra to allow us to be in compliance with the new Caltrans requirements in order for the
Huntington Beach Auto Dealers Association and their requisite Business Improvement District (BID) to
have a workable and affordable plan to seriously consider. The commitment to open the HB Car Store is
predicated on the requests made herein with the understanding that we will comply with our written
proposal to Caltrans and their agreement to view the merged project areas of the Huntington Beach
Redevelopment area as one entity for purposes of the BID -operated Reader Board's authorized use.
SECTION: A) Brief Historical Perspective /City Auto Dealer Relations —Local & Regional: Our
relationship with the City has always been on very good terms. Current and prevailing economic
conditions place us, as an Association and our members individually, at significant financial risk. Some
facts to consider:
LOCALLY: (Exhibit B; 41h Quarter HB Sales Tax Report)
1. Five (or 20%) of the Top Sales Tax producers in the City are individual New Car Dealers.
2. There are approx. 14,000 business licenses in the entire City, yet only 10 New Car Dealers
cumulatively represent 17% of the total sale tax revenue generated annually.
3. Of the top 15 Business Types producing Sales Tax for HB, Mew Motor Vehicle Dealers are and
have been the top 3 Producing Sales Tax generators in the City.
4. 4th Qtr. (08), New Car Sales in HB reported a significantly lower sales drop off than all of Orange
County and all of the entire State reflective of the longevity of New Car sales history locally and
the family orientation of the individual franchises.
REGIOANLLY: (Exhibit A; Spread Sheet of Communities w/Auto Dealer Presence and types of Assistance)
7755 Center Drive, Suite 1 100 • Huntington Beach, CA 92647
1. Of the 16 Cities survey, 15 Communities with Auto Dealer presence in their cities paid all or at
least half of all cost associated with Reader Board Signs.
2. In HB, the Auto Dealers were pleased to receive a loan to help build and or repair the Sign over
the life of the Sign and have paid back all loans rendered with the remaining payment on the
existing loan to be paid off in full on or about October 1, 2009.
3. The City of HB is a 5% partner in the Auto Dealers' BID -operated Reader Board Sign.
SECTION B) Proposed Bella Terra based HB Car Store Lease (LO1): As your office knows it has
taken over three years to conclude negotiations with Caltrans after their unilateral notice that the our
BID operated Reader Board Sign was not in compliance with new Caltrans Regulations. As a result we
were compelled to agree to a set of requirements that, as a centerpiece, required the BID to open and
operate a "retail" store at Bella Terra, to wit, The HB Car Store. The five month effort to negotiate an
acceptable Lease between Bella Terra and the BID concluded this week. The Lease is attached as Exhibit
C.
Summary of Terms and Investments required on the part of the BID:
ITEM
1. Avg. Rent
2. Office Furniture: One Time
3. Utilities:
4. Misc. Start-up (Store Sign, etc)
EXPLANATION TOTAL COST
$45,000/ Year $225,000
$12,500 $ 12,500
$ 4,200/ year $ 21,000
$15,000 $ 15,000
SubTotal.........................................................................................................$273,500
FOOTNOTES:
5. *1 Labor
*2 Existing Reader Board Sign
Maintenance Required:
$30,000/ Year $150,000
$30,000 —One Time $ 30,000
Grand Total Required...................................................................................$453,500
Simple stated if the BID does not comply with the new Caltrans requirements, the Sign will no
longer exist in support of the much needed Sale Tax generation counted on by the city for almost 35
years. To that end, the BID makes the following request of the City of Huntington Beach Redevelopment
Agency since the BID -operated Reader Board is located on Redevelopment property.
SECTION C) Deferred Maintenance —HB Auto Dealers Reader Board Repairs. It is respectfully
request that footnote (*2), the greatly needed $30,000 be the responsibility of the Agency as part of
their 5% ownership with the balance of the almost $500,000, including Labor, being borne by the BID.
SECTION D) Request for Financial Assistance. Rent, Office Furniture, Utilities and some
minimum expected miscellaneous start up cost totals $273,500. We respectfully request that the Agency
agree to a low -interest loan to the BID to enable us to be in compliance with the Caltrans demands. The
proposed Loan would be at 2%, amortized over 5 years and paid for through the BID Assessments that
have now been collected by the City for about 17 years. In light of and as a result of the current
economic conditions, without the Loan, the BID cannot comply with the Caltrans demands.
Labor is being fully borne by the BID. The issue of the funds requested and participation by the
Agency in the much needed maintenance on the BID -operated Reader Board allows us to remain in
budget with the Dealer Assessment history and desire of the voting members.
The BID is asking for a Loan Commitment of $273,500, however, the annual draw down of those
funds would be as follows since the total amount is not needed at one time:
Year One:
2009-2010:
$75,000
Year Two:
2010-2011
$49,625
Year Three:
2011-2012
$49,625
Year Four:
2012-2013
$49,625
Year Fiver:
2013-2014
$49,625
On behalf of the Board of Directors of the Huntington Beach Auto Dealers Association and their
duly formed BID, the issues, budget, Lease (LOI) and other pertinent details have been voted on by the
authorized members in compliance with our By-laws and approved. We are anxious to move forward
with this new project. The HB Car Store will be operational within 60 days of the needed funds being
available to the BID for use.
Respectfully Submitted on behalf of and in favor of
A Resolution duly adopted by the BBOC's BID
Bob iller, President / Chairman, BID
Huntington Beach Auto Dealers Association
(Beach Bid. Of Cars)
Exhibits and Attachments:
A. Financial relationships: Regional California Communities and their respective Auto Dealers
B. 4th Quarter Sales tax Report —(Public Version) City of Huntington Beach
C. Proposed Bella Terra Lease (LO1)
D. Maintenance Required: BID -operated Reader Board Sign Detailed Bid ($30,000)
E. Annual BID Assessment Filing to establish actual 2009-2010 BID dollar amount Assessment.
(Exhibit E reflects the terms requested in this letter and the resulting Assessment value)
Community / Agency
Benefactor
Key User / Focus
Amount $
Details
Relavent Transactions:
City of Cathedral City
Auto Center Freeway Sign
City paid 100% of Cost
$500,000
Dealers borrowed money, City reimburse Dealers @ $50,000 / year
City of Cerritos
Auto Center Freeway Sign
Current proposal: City Pays 100%
$400,000
Current proposal... city pays 100%
City of Corona
Auto Center Freeway Sign
Dealers 50%+tax participation agreement
$360,000
City Loaned 50%
City of Escondido
Auto Center Freeway Sign
Dealer Financed upfront 100%
$349,529
City reimburses Dealers 100% through increased sale tax
City of Garden Grove
Auto Center Freeway Sign
Dealers 100%+tax participation agreement
$577,000
City Loan through Tax participation Agreement
City of Huntington Beach
Reader Board Sign
City Loaned Dealers cost of sign
$400,000
Dealers paid back low interest loan -100%
City of Indio
Auto Center Freeway Sign
City agrees to pay 100%
$400,000
City paid 100%
City of Industry
Auto Center Freeway Sign
No Cost to any dealer
$1,200,000.00
City agreed to pay 100% of all cost
City of Long Beach
Auto Center Freeway Sign
Cal Worthington
$400,000.00
City paid 50% of all cost up front
City of Long Beach -2
Auto Center Freeway Sign
Dealers 50% + tax participation agreement
$600,000
City Loaned 50%
City of Norco
Auto Center Freeway Sign
Dealers 50%+ tax participation agreement
$507,000
City Loaned 50%
City of Ontario
Auto Center Freeway Sign
Dealers obligated for 50% of cost
$1,100,000.00
City paid 50% of all cost
City of Ontario -2
Auto Center Freeway Sign
Mark Christopher Auto Center 50%
$596,897
City to pay 50% of all cost
City of Santa Ana
Auto Center Freeway Sign
City paid 50% of cost up front
$680,000
City / Dealers split 50%
City of Ventura (In Progress)
Auto Center Freeway Sign
Dealer Financed up front 100%
$1,500,000
City to pay 100% of cost, interest, etc. through increased sale tax
City of Westminster
Auto Center Freeway Sign
City paid 50% of cost upfront
$992,000
City /Dealers split 50%
1-3
twititht4r is
SALES TAX BY MAJOR BUSIlNESS GROUP
$2,000,000
4th Quarter 2007
$1,600 ,000 4th Quarter 2008
VENtJE C0MPAI�S0N
Albertsons
Kohls
Two Quarters="Fiscal Year To Date
Applied Computer
Lowes
Solutions
Mervyns
2007-08 .` 200&09
Baker Oil Tools
Norm Reeves
CVS Pharmacy
Honda
Point -of sale - $13817,336 $12,780,827
Delillo Chevrolet
Oil Field Tubulars &
Supply
County Pool ': 11421,958 1,3391757`
G&M Oil
Home Depot
Pinnacle Petroleum
State Pool . '4766, 9;976
Huntington Beach
Ralphs
-
Chrysler Jeep
Reliable Wholesale
Gross Receipts $15242,060 $14,130,561
Huntington Beach
Lumber
Dodge
Sharp Electronics
less Tnple Flip' $(3;810,515j > ${3,532;640)
Huntington Beach
Target
Ford
Toys R Us
Huntington Beach
VonS
*Reimbarsedfromcouritycompere-ugnfund
Toyota Scion Kia
Wal Mart
Hyatt Regency
Published by Tfie HdL Companies in Spring 2009
www.hdIIcorn anies.com 888.8610220 "�
idlusted for accounting aberrations,
10.25%, except in Los Angeles Coun-
�omt� of sale receipts from October
ty, where on July 1, 2009 the maximum
bough December sales were 13.1%
possible rate becomes 10.75% as an
lower than ilie same quarter of 2007.
additional one-half cent tax passed by
I he revenues generated in this holiday
that county's voters in November takes.
quarter wereahelowest since 2003.
effect. Only two agencies in California
The declines; Occurred in all categories
will reach the highest rate.
Df sales except fast -,food restaurants
Economists disagree on how consum-
and grocery stores ;and: were experi-
ers will react to a double digit sales tax.
enced ii all" eounttes'and Legions. Of
The actual impact may be difficult to
particular sigcance were; the 23%
dtstinguish from sales lost due to cur -
decline to receipts from petroleum re-
rent economic conditions and record
lated businesses" which' resulted, from.
low consumer confidence.
declining prices and consumption,.; a...
In preparing their revenue projections,
37% drop in revenues from new car
the State Department of Finance as -
sales, and am 14 6%:.decrease to Ales
sunned that the additional one cent tax
tax allocations from,butlding and con
would result in a one percent loss in
struction materials: `
future purchases.
Tax revenues from generaL:consuiner
goods were down 10.4% froth:the
Stimulus Package Benefits
2007 holiday quarter while busmess; to
The American Recovery and Reinvest -
business sales were 9.0% lower
rrient Acti of 2009 will send an estimat-
This was the sixth consecutive quar-
ed $31 billion to the state. Roughly one
ter of lower statewide allocations.
thud will be used to backfill state bud -
Trade association surveys indicate that
get cutbacks in education and other
January through March sales will be
programs, another third for new state
equally dismal. The latest HdL con-
spending and the final third for grants
sensus forecast estimates that fiscal
made on a competitive basis. Near-
2008/2009 sales and use tax revenues
will be 8.8% below the prior year.
RUMUNU
Most economists believe that the re-
t
cession will not bottom out until late
Busmes-SType Q4
term benefits most likely to boost retail
spending include "Making Work Pay"
tax credits to boost payroll checks, ex-
tending and increasing unemployment
insurance payouts, and allowing buyers
of new vehicles purchased between
February 17th and December 31st to
deduct state sales tax from their fed-
eral income tax. Analysts warn that
for the short term, these benefits will
do little more than slow the economy's
descent.
L SALES PER CAVITFA
$4,000
$3,000
$2,000
$1,000
$0
Q4 Q4 Q4 Q4
05 06 07 08
Huntington Beach County Califomia
2009 and significant recovery will not New Mot'&Vehide Dealers $601.4 -30.0% -35A% -36.4%
occur before 2011/2012. SernceStations 433.4 -27.7% -24.0% -23.2%
New Sales Tax Rate
Article 13A of the state constitution
authorizes the state legislature to in-
crease taxes other than property by
a two thirds vote. This allowed the
2008/2009 state budget compromise
which temporarily increases the state
portion of the sales and use tax rate
by 1.0% from April 1, 2009 to July 1,
2011. The increase will be extended
for one additional year if voters ap-
prove Proposition 1A, the state spend-
ing cap measure on the May ballot.
This brings California's top combined
sales, uransactions and use tax rate to
PetroleumProd/Equipment" ' ''
345.0
-9.2%
11.5%
-1.3%
`DISCOutltDeptStOr2S :=
-CONFIDENTIAL-
1.0% -
-3.3%
LumberBuilding Materials
326.2
-21.2%
-14.7%
-12.4%
Restaurants No Alcohol
313.3
-2.7%
1.3%
1.3%
Restaurants Liquor
301.4
7.6°%
8.6°%
1.0°%
Grocery Stores liquor-:
260.6
-3.4%
-0.7%
0.7°%
SpeaaltyStores
245.0
12.6%
11.1%
7.2°%
Faintly Apparel
228.8
-8.4°%
-8.0°%
-3.6°%
Business Seances
193.0
-7.8%
18.3%
20.2°%
.." SporhngGoods/Bike Stores <
175.3
8.6°%
-13.0%
-6.5%
EledroniadAppliance`Stores ",.
169.2
-11.7°%
-18.3%
-13.0%
Light Inddstrial/Pdnters
163.5
-20.7%
5.0°%
11.3%
Restaurants Beer Arid Wine
142.8
3.9%
-5.3%
-6.8%
Total All Accounts"
$6,923.6
-131 %
County.B:State P0 Allocation _
' 626 2
-17 0°% '
Gross Receipts
$6;649.8
-13 5% `.
in fhoivands'-
BELLA TERRA ASSOCIATES, LLC
exa Now r t "
July 1, 2009
The Huntington Beach Auto Dealers Association's
Business Improvement District -Business Office
7755 Center Drive, Ste 1100
Huntington Beach, Ca 92647
Dear Bob,
I am pleased to present this Letter of Intent ("LOI"), which outlines the basic terms upon
which Bella Terra Associates, LLC ("Landlord") may be willing to enter into Lease
negotiations for space in Bella Terra (the "Center"):
1.
Landlord:
Bella Terra Associates, LLC
2.
'Tenant:
Please provide entity name
3.
Guarantor:
To be determined
4.
'Trade Name:
Please provide trade name
5 ,
Premises:
Space E-112.
6. Center: Bella Terra, Northwest corner of Beach
Boulevard and Edinger Avenue at the San Diego
(405) Freeway in Huntington Beach, California.
7. Floor Area???: Approximately Two Thousand Three Hundred
and Twenty Five (2,059) square feet.
8. Term: Five (5) Years. Landlord and 'Tenant have the
right to terminate the Lease at the end of Year 3
if the Tenant has not completed the necessary
improvements and infrastructure to bring the
build -out and fixtures up to a first class level
consistent with the standards of Bella Terra's
Tenant Improvement Requirements and Criteria
by the end of Year 3. Landlord and 'Tenant
agree that a smaller space is desired, the space
described herein is the only space currently
available, and when such smaller space
becomes available, the proposed rent terms
Q
- 2 - July 14, 2009
herein shall be prorated based on the total
square feet available in the new smaller space.
Minimum Base Rent: Year 1 - $35,000.00 gross rent - $2,916.67 per
month.
Year 2 - $40,000.00 gross rent - $3,333.33 per
month.
Year 3 - $45,000.00 gross rent - $3,750.00 per
month.
Year 4 - $50,000 gross rent-$4,166.67 per month.
Year 5- $55,000.00 gross rent - $4,583.33 per month.
10. Option Term:
11. Estimated Delivery
Date:
12. Lease Commencement:
None.
Upon Lease Execution.
Upon Lease Execution.
13. Rent Commencement The earlier of (i) Tenant's opening date or (ii)
Date: Thirty (30) days after Landlord delivers the
Premises. Tenant shall have Sixty (60) days for
Tenant's build out period.
14. Percentage Rent Rate: Waived.
15. Radius Restriction: Ten (10) miles.
16. Continuous Operation: Tenant agrees, from and after the date Tenant is
required to open for business and during the
Term, to continuously operate the Permitted Use
in the entire Premises.
17. Permitted Use: The Premises shall be used as a location from
which the collective car dealerships offer product
information and shuttle service for its clients to
and from this store location and their respective
dealership locations. Tenant may offer for sale at
retail various items (to be further defined).
Tenant is responsible for any use approvals from
the City of Huntington Beach.
18. Initial Promotional $2000.00. WAIVED.
Assessment:
19. Promotional Fund: Tenant agrees to pay Landlor a Promoti^°'�'
Chang as Tenant's „t. ibution toys,ard Elie
— 3 — July 14, 2009
CenteF's
adver-tis;ng,
administrative
promotion,—
pu-tlie-
related
relations and
to the foregoing.
The promotional
expenses
u
Charge
hall be e1 00
n
foot
Fo,. the first
Lease Yean The
square
Promotionn!
Charge
be
by the CPI,
but
shall
in
eased annually
less than five
Lease
no event
Yearn.
pereent
)
per-
20. Architectural Review Upon r Lease Emeeutio,,, tenant shall pay r nd
Fee fee equal to $2,500 for- T .,n ler- 's eest to
rL bziaw andapprove Tenant's plans to „ preye
the Pr-e ises WAIVED.
21. Security Deposit: Tenant agrees to pay a security deposit in an
amount equal to two month's Rent, which shall
be due upon Lease execution and shall be subject
to Landlord's review of Tenant's financials.
22. Advance Rent: Tenant agrees to pay an amount equal to the (1s)
month's Rent and additional expenses, which
shall be due upon Lease execution.
- 4 - July 14, 2009
24. Assignment/Subletting: Tenant agrees that there shall be no assignment
or subletting without the prior written consent of
Landlord.
25. Condition of Premises: "As -is"
- 5 - July 14, 2009
26. Utilities & Tenant agrees to be responsible to maintain the
Maintenance: Premises and to pay for all utilities serving the
Premises. Landlord to maintain the Center and
Tenant shall reimburse Landlord for cost
incurred as a part of Common Area maintenance.
27. Signage: Tenant agrees to install and maintain new
storefront signage in accordance with Landlord's
sign criteria and applicable governmental
regulations, at Tenant's expense. Banners shall
be subject to code and coordinated for approval
with the Property Manager throughout the Lease
term.
28. Brokers: DJM Capital Partners, Inc. represents the
Landlord. Tenant is not represented by a broker.
The broker(s) shall be paid by the Landlord
pursuant to a separate agreement between the
Landlord and DJM Capital Partners, Inc.
29, Lease Form: Tenant agrees to use Landlord's Lease form.
34. Relocation: Tenant agrees that the Landlord shall have the
right to relocate the Tenant any time during the
Term. The Landlord shall pay for all related
expenses. Relocation language shall be further
defined in the Lease.
If you are in accord with the foregoing and are interested in continuing discussions
regarding this space, please execute this LOI in the space provided below and return the
executed LOI to us no later than July 31", 2009. Upon receipt by the Landlord of the
executed LOI and after appropriate review and approval by the Landlord of the LOI, your
financial background and operational experience, a Lease may be drafted and forwarded
for your review. Submission of a proposed Lease is for negotiation and discussion
purposes only. If the executed LOI is not received by the date specified above, it shall
imply thatt you no longer have any interest in pursuing our discussions.
No person or entity referred to in this LOI shall have any rights against or obligations to
the other unless and until a fully executed Lease has been entered into and delivered to
the Tenant. It is also understood that Landlord is negotiating multiple offers on this site
and is not obligated to move forward in negotiations with Tenant.
Please be advised that any expenditures or obligations undertaken by either party, prior to
the execution and delivery of a Lease, shall be at such parry's sole cost and expense. If
Sm
July 14, 2009
you should have any questions or require any additional information, please do not
hesitate to contact me at (805) 962-4300.
Very truly yours,
LE
Lindsay Parton
APPROVED AND ACCEPTED THIS DAY OF 2008
TENANT:
BY:
ITS:
cc: Eric Sahn, DJM Capital Partners, Inc.
Heather Hollister, DJM Capital Partners, Inc.
Becky Sullivan, DJM Capital Partners, Inc.
-7-
Exhibit A
Premises
July 14, 2009
-8-
EXHIBIT "C"
PREVIOUSLY OCCUPIED SPACE
POSSESSION "AS -IS"
July 14, 2009
- TENANT SHALL TAKE
AMP YESPM
February 4, 2009
FOR: EMI
Attn: Rod Wilson
4737 W. 1561h Street
Lawndale, CA 90260
FROM: YOUNG ELECTRIC SIGN COMPANY
Dave Jones, Account Executive
Los Angeles Division
5405 N, Industrial Parkway
San Bernardino, California 92407
909-923-7668 Telephone
909-923-5015 Fax
RE: Reface channel letters for Huntington Beach Blvd. of Cars pylon sign
Young Electric Sign Company to perform the following scope of work:
Remove and discard existing channel letter faces and trim cap for (2) two sets of "Huntington
Beach BLVD of CARS EXIT BEACH BLVD" and the (2) two arrow letters.
Manufacture and install the following:
1. (2) Two sets of 1' 6" high red acrylic channel letter faces and trim cap, letters reading,
"Huntington Beach."
2. (2) Two sets of 3' high red acrylic channel letters faces and trim cap, letters reading "BLVD
of CARS."
3. (2) Two sets of 1' 6" high red acrylic channel letters faces and trim cap, letters reading
``EXIT BEACH BLVD" with arrow letter also.
Exact red acrylic color is to be determined.
www.yesco.com
'Y 0 11 N V. L E U, 'f I i if, Iv 17 6 ill I C 4 Nil I- A i � V I.os Aiiqj,.Ar,�s liivisinw
[Z FO A L
March 27- 2009
FOR: 1:1kil
'Attil: Rod Wilson
-1,7-,7 Mi. 1 �6"' Strcct
kiwild"'11C. CA 90200
FRON,I: YOt.;'NG I'A.ECTRIC `` IGN C0N/11'.ANY
Davc.loncs- Account J:xccu['IVC
Pepaikii all pole covers and Cabinets on I ItInfill-ton Beach Blvd. of C.Irs pylon si-li
youlw) Hcctric Sk-)Il Commiliv to perlol-Ill the -scout: of' work:
RCI-)"lilitall pale k,-o\CIS- CNI)OSCCI I-)]I)C OHCI Ca1-)IIICIS 011 11011tingtoll llcach RMI. ol'Cars i5' mcrall
1160)t pylon slL�jl.
3
From: Rod Wilson
Sent: Wednesday, February 25, 2009 11:52 API
To: 'Bill ®emarest'
Subject: FW: HB Tri-Vision
Bill, the price to fabricate and install all six vinyl faces (12' x 271 V each), including crane labor is
$8,955.30 (includes tax).
Note: The sign has two tri-visions one on each side of sign, totaling 6 faces to change.
Price includes removing all tri-vision louvers and placing them on a jig at the bottom of sign,
applying new vinyl creative faces on all 6 sides of the louvers and then reinstalling and
synchronizing both sides of tri-vision. Job will take 10 to 14 days to fabricate vinyl after proof is
signed off, and 3 days to install and synchronize.
Terms: 60% down
50% upon completion
Bill, let me know if you have any questions.
Electra Media, Inc.
Rod Wilson I President
4737 W. 156th Street
lawndale, CA go26o
P (31o) 725.o816
F (31o) 725.o817
C (31o) 625.6966
Please consider the environment before printing this email.
E ONST US 04
Huntington Beach Auto Dealers
Business Improvement District
Report/Budget
October 1, 2009 to September 30, 2010
REVENUE (1)
Previous Years Carry Over (estimated) $26,000
Business Improvement Assessment 156,060
Total Revenues: $182,060
EXPENSES:
Promotional
Activities and events (2)
Management Services
Misc/Dues and Fees
$25,000
27,000
500
_ Office Supplies _ _ _ 1,000
Subtotal Promotional: $53,500
Reader Board Sign Maintenance
Electricity $15,000
Insurance 10,600
Loan payment 83,700
Maintenance 12,300
Phone (data transmission) 1,200
Programming for sign 5,760
Subtotal Reader board sign $128,560
Total Expenses
Notes:
(1) Car Store/Loan assessments are based on $785 per month for members
The operating assessment income is $660 per month per dealer.
Dealers pay $1445 per month including a 1% administrative charge. Surplus revenue
represents excess aggregate loan assessment maintained by ciy finance dept.
(2) HB Athletic Programs ($2000): School Scholastic Programs ($2000); School Grad
Nights ($2500): Image advertising to buy at home ($12,000): Plus Misc. promotional
activities and events ($6,500).
$182,060
ATTACHMENT #3
i1.CITY OF HUNTINGTON BEACH
N
INTERDEPARTMENTAL COMMUNICATION
FINANCE
riN���IT I NGT�2
DEPARTMENT
TO: FRED A. WILSON, CITY ADMINISTRATOR,` /
FROM: BOB WINGENROTH, DIRECTOR OF FINANCE
SUBJECT: F I S 2009-10-04 Approval of Loan and Grant Request from the
Huntington Beach Automobile Dealers Association
DATE: OCTOBER 12, 2009
As required by Resolution 4832, this Fiscal Impact Statement has been prepared for
"Approval of Loan and Grant Request from the Huntington Beach Automobile Dealers
Association."
If the Council approves this action:
• The estimated undesignated budgetary fund balance of the Merged Project
Area Debt Service fund will be reduced to $5,108,000 at September 30, 2010.
• The estimated undesignated budgetary fund balance of the Merged Project
Area's Capital Projects Fund will be reduced to $1,764,000 at September 30,
2010.
BW/rs
RCA ROUTING SHEET
INITIATING DEPARTMENT:
Economic Development
SUBJECT:
Approval of Loan and Grant Request from the
Huntington Beach Auto Dealers Association
COUNCIL MEETING DATE:
October 19, 2009
RCA ATTACHMENTS
STATUS
Ordinance (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Tract Map, Location Map and/or other Exhibits
Attached
❑
Not Applicable
Contract/Agreement (w/exhibits if applicable)
Attached
(Signed in full by the City Attorney)
Not Applicable
❑
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
❑
Fiscal Impact Statement (Unbudgeted, over $5,000)
Attached
❑
Not Applicable
Bonds (If applicable)
El
Notached
t Applicable
Staff Report (If applicable)
Nott Applicable
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
REVIEWED
RETURNED
FORWARDED
Administrative Staff
( )
( )
Deputy-CityDeputy.City Administrator Initial
City Administrator Initial
)
)
City Clerk
( )
EXPLANATION FOR RETURN OF ITEM:
RCA Author: Powell
City of Huntington [leach
2000 Main Street • Huntington Beach, CA 92648
OFFICE OF THE CITY CLERK
JOAN L. FLYNN
CITY CLERK
October 21, 2009
Huntington Beach Automobile Dealers Association, Inc.
7755 Center Drive, Suite 1100
Huntington Beach, CA 92647
To Whom It May Concern:
Enclosed for your records is a copy of the Loan Agreement between the
Redevelopment Agency of the City of Huntington Beach and the Huntington Beach
Automobile Dealers Association.
Sincerely,
JF:pe
Enclosure: Agreement
G:followup:agrmtltr
Sister Cities: Anjo, Japan • Waitakere, New Zealand
( Telephone: 714-536-5227 )