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HomeMy WebLinkAboutHuntington Beach Automobile Dealers Business Improvement Dis STATE OF CALIFORNIA County of Orange I am a Citizen of the United States and a resident of the County aforesaid, 1 am over the age of eighteen years, and not a party to or interested in the below entitled matter I am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and pubrished in the City of PUBLIC NOTICE Huntington Beach Count of Orange, State of `J-` + County g • LEGAL NOTICE � California and that attached Notice is a true and l ORDINANCE NO 3175 complete co as was printed and published in AN ORDINANCE OF P PY P Pu THE CITY OF HUNTING the Huntin ton Beach and Fountain Valley TON BEACH ADDING 9 J CHAPTER 3 52 TO THE issues of said newspaper to wit the issue(s)of HUNTINGTO BEACH MU NICIPAL CODD E (NEW) ES TABLISHING THE HUN TINGTON BEACH AUTO DEALERS BUSINESS IM PROVEMENT DISTRICT SYNOPSIS ORD 3175 Ordinance No 3175 amends the City of Hun October 1 1992 tington Beach Municipal f Code by adding Chapter 352 which establishes the Huntington Beach Auto) Dealers Business Im provement District which provides for the imposition of a benefit assessment of all businesses classified by the City s Business License Code as Class A (retail) sales auto new used parts) The boundaries of the business improvement area are generally located on Beach boulevard be-j tween "05 Freeway and' Garfield Avenue THE FULL TEXT OF THEI ORDINANCE IS AVAIL I ABLE IN THE CITY CLERKS OFFICE I declare, under penalty of perjury, that the Adopted by the city, Council the of Hun Ungton Bea ach at att a regular) forp�an is true and correct. tembemeeting held Monday Sep j vy lowing r 21 ro I call o ey the foI AYES Co if in Executed on nctober 1_ + 199? bers Robitadle MoulI ton Patterson Winch at Costa M sa, Califomia ell Silva, Green,i MacAllister Kelly NOES Councilmem Ibers None �� ABSENT Council None Signature I CITY members OFHUNTING ITON BEACH Conmel Brockway City Clerk Published Huntingtonl Beach Fountlan Valley In dependent October 1 1992 101 320� PROOF OF PUBLICATION UAWA=ICES PUBLIC NOT' PUBLIC NOTICES _ PUBLIC NOTICES PUBLIC 901FIGEb PUBLC1,NOTILFb PUBLIb NU I Iota yV1361V nu I wna�'\ PUBtIC HtAF 9 telephone (714) 536-55n or from the Huntington Beach SEPTEMBER 8 19jz Auto Dealers Association Inc P 0 Box 2700 Huntington Beach RESOLUTION NO 6415 f E A RESOLUTION OF THE CITY OF HUNTINGTON BEACH CA 92648 telephone (714) 831-8458 F DECLARING ITS INTENTION TO ESTABLISH A PARKING SECTION 8 The City Council by this Resolution AND BUSINESS IMPROVEMENT AREA TO BE KNOWN AS THE 6 HUNTINGTON BEACH AUTO DEALERS appoints Huntington Beach Auto Dealers as the Advisory Board BUSINESS IMPROVEMENT DISTRICT SECTION 9 The City Clerk has caused this resolution of 1 WHEREAS the Parking and Business Improvement Area Law of intention to be published once in a newspaper of general 1989 codified at Streets and Highways Code § 36500 et seq (the circulation in the city at least seven days before the public E Act ) authorizes cities to establish parking and business hearing t improvement areas for the purpose of imposing benefit SECTION 10 The City Clerk shall mail a complete copy of assessments on businesses for certain purposes and this resolution of intention by first-class mail to each New Auto Dealers in Huntington Beach have requested this business owner in the area within seven days after the Council s City Council to establish suck an improvement area adoption of this resolution 1 1 NOW THEREFORE the City Council of the City of Huntington SECTION 11 This resolution shall take effect immediately 1 Beach does hereby resolve determine and find as follows upon adoption 1 i SECTION 1 The City Council of the City of Huntington PASSED AND ADOPTED by the City Council of the City of Huntington Beach hereby declares its intention to establish a parking and Beach at a regular meeting thereof held on the 17th day of business improvement area named the Huntington Beach Auto Auaust L992^ JIM$II+OA Dealers Business Improvement District (the District ) pursuant to the Act COIfN1E BROCKWAY Mayor � SECTION 2 The proposed boundaries of the District are ATTEST City Clerk set forth in Exhibit A-1 and incorporated herein by reference EXHIBIT A- 2 SECTION 3 The proposed uses to which the revenue from E INGTON the District will be put are the construction operation and AUTOMOBILEE DEALERS AUTOMOBILE BEACH ASSOCIATION INC � maintenance of a readerboard sign to be located adjacent to the 1 Ron Schmid 7 Steve Paraleckas C 405 Freeway Huntington Beach Dodge Campbel Nissan/Saturn 16555 Beach Boulevard 18835 Beach Boulevard SECTION 4 The City Council intends to levy a benefit Huntington Beach CA 92647 Huntington Beach CA 92648 847-5515 Fax#842-7408 842-7781 Fax#848-6569 assessment on all businesses classified by the City of Huntington Beach Business License Code as Class A Retail Sales 2 Rick Evans 8 Jack Caswell Huntington Jeep Eagle Bill Maxey Toyota (Al) Auto New Used Parts including new businesses of that 16751 Beach Boulevard 18881 Beach Boulevard Huntington Beach CA 92647 Huntington Beach CA 92648 classification located within the ,District as shown in Exhibits 841-3999 Fax#841-4848 847-8555 Fax#841-9857 A-1 and A-2 in the amounts set forth on Exhibit B which 3 Chet Clark 9 Dan Powers Exhibits are incorporated herein by reference Beach Lincoln-Mercury Huntington Beach Acura 16800 Beach Boulevard 19131 Beach Boulevard SECTION 5 Except where funds are otherwise available Huntington Beach CA 92647 Huntington Beach CA 92648 848-7739 Fax#847-1265 842-0095 Fax#841-3524 an assessment to pay for all specified improvements and t.�ntnt t is before the time fazed for the hearing and contain sufficient documentation to verify business ownership and validate the PROPOSED ANNUAL ASSESSMENT FORMULA particular protest If written protests are received by the Business Type Assessment Formula Per Month owners of businesses within the Distract which will pay 501 or Auto-New a) Directory Sign Trust Account $ 435 Used Parts for 60 Months more of the total assessments to be levied no further b) Sign Maintenance 400 proceedings to establish the Distract shall be taken for a period of one year from the date of the finding of a majority c) Administration Costs(Dealers) 200 protest by the City Council If the majority protest is only d) Property Tax 30 e) Insurance 50 against the furnishing of a specified type or types of f) Collection/Disbursement Costs(City/Bank) 25 improvements or activity within the Distract those types of improvements or activities shall be eliminated All Other SECTION 7 Further information regarding the proposed Businesses if any -0- business improvement distract may be obtained at the Huntington Total Initial $ 740 Beach City Hall 2000 Main Street Huntington Beach California Total w/Maintenance 1 140 E Total After 60 Months 705 EXHIBIT A I * Business owners with multiple dealerships at the same location or adjacent locations having a common method of access and egress shall pay one benefit assessment fee i I Reader Board Site * Business owners with multiple dealerships at multiple non-adjacent Ilocations shall be assessed for each such location Huntington Center �-5 Edinger Res No 6415 STATE OF CALIFORNIA COUNTY OF ORANGE ss Heil CITY OF HUNTINGTON BEACH ) ' i Dodge I CONNIE BROCKWAY the duly elected qualified City 2 Jeep Eagle 3 Lincoln Mercury Warne] Clerk of the City of Huntington Beach and ex-officio Clerk of the City Council of said City do hereby certify that the whole number of { members of the City Council of the City of Huntington Beach is seven r , that the foregoing resolution was passed and adopted by the affirmative Slater vote of at least a majority of all the members of said City Council at a regular meeting thereof held on the 17th day Talbert of August 19 92 , by the following vote 4 Chevrolet AYES Councilmembers 5 Ford ® Rnhi a ll . Moult-on-Pattprscn. Win h ll. Silva, Green. MacAllister, Kc11v Ph c M STATE OF CALIFORNIA County of Orange I am a Citizen of the United States and a resident of the County aforesaid, I am over the age of eighteen years, and not a party to or interested in the below entitled matter 1 am a principal clerk of the HUNTINGTON BEACH INDEPENDENT, a newspaper of general circulation, printed and published in the City of Huntington Beach, County of Orange, State of Carifomia, and that attached Notice is a true and complete copy as was printed and published in the Huntington Beach and Fountain Valley issues of said newspaperto wit the issue(s) of AUITUSt 27 , 1992 1 declare, under penalty of pegury, that the foregoing is true and correct Executed on AuTust 27 , 1992 at Costa esa, Carifomia. Signature PROOF OF PUBLICATION C' REQUES) FOR CITY COUNCIAACTIOW,) ED 92-42 Date SeWember 8 1992 Submitted to Honorable Mayor and City Council Members Submitted by Michael T Uberuaga, City Admimstrawrowo .-;;P� Prepared by b"J,ez'44-- Barbara A Kaiser, Deputy City Administrator Subject ORDINANCE TO ESTABLISH THE HUNTINGTON BEACH AUTO DEALERS BUSINESS DEVELOPMENT DISTRICT Consistent with Council Pola �7 Yes New Policy or Exception � f �'�/7,5 Statement of Issue Recommendation Analysis Funding Source Alternative Actions Attachments STATEMENT OF ISSUE At the City Council meeting of August 17, 1992, the Council approved Resolution No 6415 This resolution declared the City Council's intention to establish a parking and business improvement area to be known as the Huntington Beach Auto Dealers Business Improvement District and that a public hearing would be held on September 8, 1992 at 7 00 City Council action is needed to consider adoption of the required ordinance to establish the business improvement district RECOMMENDED CITY COUNCIL ACTION 1 Conduct a Public Hearing, 2 Approve Ordinance No 3175 to establish the Huntington Beach Auto Dealers Business Improvement District ANALYSIS The Huntington Beach Automobile Dealers Association has requested City Council assistance in forming a Business Improvement District to fulfill their obligations to operate and maintain the electronic reader board sign The obligations of the HBADA are listed in detail in the Disposition and Development Agreement approved by the City Council/Redevelopment Agency at the August 17, 1992 meeting and is on file in the Office of the City Clerk The City Council also adopted Resolution 6415 a Resolution of the City of Huntington Beach declaring its intention to establish a Parking and Business Improvement Area to be known as the Huntington Beach Auto Dealers Business Improvement District (BID) Resolution 6415 was sent to all HBADA members and it was published as a Public Notice in the newspaper This resolution announced the public hearing date of September 8 1992 and included the purpose of the meeting, an assessment map and an assessment formula \..cr 1 1 O 5/85 ED 92-42 September 8, 1992 Page Two Staff has met several times with the HBADA and as a result of these meetings, an assessment formula and district map have been agreed upon and are attached as part of the ordinance All of the dealers that plan to assess themselves have agreed to support the formation of the proposed Business Improvement District FUNDING SOURCE The funds for staff support, printing, mailing and advisory consulting service are available in the Huntington Center Redevelopment Project Budget for 1992-93 ALTERNATIVE ACTION Do not approve the ordinance to form the BID ATTACHMENT Ordinance establishing the Huntington Beach Auto Dealers Business Improvement District MTU/BAK/TA sar 1260r ORDINANCE NO 3175 AN ORDINANCE OF THE CITY OF HUNTINGTON BEACH ADDING CHAPTER 3 52 TO THE HUNTINGTON BEACH MUNICIPAL CODE (NEW) ESTABLISHING THE HUNTINGTON BEACH AUTO DEALERS BUSINESS IMPROVEMENT DISTRICT WHEREAS, the City Council of the City of Huntington Beach has now determined to establish a Business Improvement District to provide for the imposition of a benefit assessment and to adopt an ordinance to such effect, NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF HUNTINGTON BEACH DOES HEREBY ORDAIN AS FOLLOWS SECTION 1 Intent and Purpose On August 17, 1992, the City of Huntington Beach (the "City" ) adopted Resolution No 6415 (the ' Resolution' ) , declaring its intention to establish a business improvement area (herein referred to as the "District") and to levy a benefit assessment on all businesses within said District, the proceeds of which shall be used for the public purposes therein described, pursuant to the Parking and Business Improvement Area Law of 1989 , Part 6 (commencing with Section 36500) of Division 18 of the California Streets and Highways Code (the Act ) On September 8, 1992, the City Council held a duly noticed public hearing and introducted Ordinance No 3175 The City Council has heard and considered all oral and written protests or other comments regarding such proposed action, and written protests from businesses in AJFk 7/92158 1 the proposed area paying a ma]ority of the proposed assessment have not been received and the City Council finds , based on all evidence presented that the businesses within the District will be benefited by the expenditure of the funds raised by the assessments proposed to be levied SECTION 2 Definitions Businesses to be assessed are those classified by the City of Huntington Beach Business License Code as Class A Retail sales (AI) , auto, new, used, parts SECTION 3 Establishment of Area A parking and business improvement area to be known as the 'Huntington Beach Auto Dealers Business Improvement District (the 'District ') is hereby established pursuant to the Parking and Business Improvement Area Law of 1989 , Streets and Highway Code Section 36500, et seq The boundaries of the District and the benefit zones within the District are generally located on Beach Boulevard, and set forth with greater specificity in the following map and list Exhibits A-1 and A-2 SECTION 4 Boundary Modification The City Council may modify the boundaries or assessments, established by this Ordinance, the modifications shall be made pursuant to the requirements of the Act, but no assessment shall be modified which would impair the ability of the District to meet the obligation of a contract to be paid from the revenues derived from the levy of assessments AJFk 7/92158 2 SECTION 5 Collection of Benefit Assessment The benefit assessment authorized by this Ordinance shall be billed by the City in monthly installments with all funds collected being remitted within (thirty) 30 days of receipt to the Huntington Beach Auto Dealers Association or such other entity or organization as is mutually agreed upon by said Association and City This will be accomplished by mailing assessment notices monthly to all businesses as herein defined within District by first class mail to be due 30 days from date of nvoice The levy of assessments will commence on the first day of the month following the issuance of the Certificate of Occupancy by the City for installation and full operation of the Auto Dealers directory reader board sign witin the District SECTION 6 Changes in Assessments Any businesses covered by this Chapter shall also be subject to changes which may be made in the assessments or in the uses to which the revenues shall be put, as specified in this Ordinance and as permitted by the Act, such changes shall be made by later ordinance adopted after a hearing before the City Council, or by Resolution, if approved in conjunction with confirmation of the Annual Report SECTION 7 Business Classifications/Benefit Assessment For purposes of the assessments to be imposed pursuant to this Ordinance, the City Council may make a AJFk 7/92158 3 reasonable classification of business , giving consideration to various factors , including general benefit to businesses and the degree of benefit received from programs of the District All businesses , as defined in Section 2 hereof , located within the Huntington Beach Auto Dealers Improvement District are assessed and classified as follows Business Type Assessment Formula Per Month 1 Auto-New, a) Director Sign Trust Used, Parts Account for 60 months $ 435 b) Sign Maintenance $ 400 c) Administrative Costs $ 200 (Dealers) d) Property Tax $ 30 e) Insurance $ 50 f) Collection/Disbursement $ 25 Costs (City/Bank) 2 All other business, if any -0- Total $1 ,140 Total After 60 Months 8 705 (a) Business owners with multiple dealerships a the same location or adDacent locations having a common method of access and egress shall bay one benefit assessment fee (b) Business owners with multiple dealerships at non-ad3acent multiple locations shall be assessea for each such location SECTION 8 Benefits to Business/Restriction on Use The assessments levied on businesses pursuant to this Ordinance shall, to the maximum extent feasible, be levied on the basis of the estimated benefit to the businesses d within the District and the revenues from the levy of assessments shall not be used to provide improvements or activities outside of the District or for any other purpose not specified in said Resolution of Intention SECTION 9 Penalty for Delinquent Payment For failure to pay a benefit assessment when due, the City shall add a penalty of ten percent (10%) 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 which, at the time of making application for any license or renewal thereto, is indebted to the City for any delinquent benefit assessment SECTION 10 Advisory Board (a) Appointment The City Council shall appoint an Advisory Board which shall make recommendations to the City Council on the expenditure of revenues derived from assessments pursuant to this part, on the classification of businesses, and on the method of levying the assessments (b) Annual Report The Advisory Board shall prepare a report for each fiscal year for which assessments are to be levied The report shall be filed with the City Clerk and shall comply with all the requirements of Streets and Highways Code Section 36533 AJFk 7/92158 5 (c) Approval of Report The City Council may approve the annual report filed by the Advisory Board or may modify any particular item contained in the report and approve it as modified The City Council shall not approve a change in the basis or method of levying assessments which would impair an executed contract to be paid from the revenues derived from the assessments SECTION 11 Annual Approval/Resolution After approval of the report filed by the Advisory Board, the City Council pursuant to Section 36534 of the Act, shall adopt annually a resolution of intention to levy an assessment for that fiscal year The City Council shall hold a public hearing prior to the adoption of a resolution confirming the Annual Report and Levy of Assessments SECTION 12 Public Hearing A public hearing shall be held pursuant to the requirements of Parking and Business Improvement Area Law of 1989 SECTION 13 Area Establishment and Disestablishment All provisions of this Chapter applicable to the establishment or disestablishment of an area shall apply to the establishment, modification, or disestablishment of benefit zones pursuant to Section 36500, et seq of the California Streets & Highways Code, and sub]ect to any amendments thereof, and the establishment or the modification of any benefit zone shall follow the same AJFk 7/92158 6 procedures as provided for the establishment of a parking and business improvement area and the disestablishment of a benefit zone shall follow the same procedure as provided for disestablishment of an area SECTION 14 This ordinance shall take effect 30 days after passage PASSED AND ADOPTED by the City Council of the City of Huntington Beach at a regular meeting thereof held on the 21st day of.-- September 1992 Mayor ATTES ® APPROVED AS TO FORM �� - ,-- City Clerk 4- 4 �/iCity Attorney �,� 7=31-�12 R ND APP OVE INITIATED AND APPROVED 4.L'z-cam_ CC City Administrator Director, Economic Development AJFk 7/92158 7 EXHIBIT A - 1 11 Reader Board Sit Huntington 4n Center v S Edinger ne l l 1 Dodge 2 Jeep Eagle 3 Lincoln Mercury Warner Slater Talbert 4 Chevrolet ' 5 Ford Ellis 6 Volkswagen/Isuzu ° 7 Nissan/Saturn 8 Toyota Garfield 9 Acura ° 10 Honda/Mitsubishi beach Blvd EXHIBIT A - 2 HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOCIATION, INC 1 Clay James 7 Steve Parajeckas Huntington Beach Dodge Campbel Nissan/Saturn 16555 Beach Boulevard 18835 Beach Boulevard Huntington Beach, CA 92647 Huntington Beach, CA 92648 847-5515 FAX# 842-7408 842-7781 FAX# 848-6569 2 Rick Evans 8 Jack Caswell Huntington Jeep Eagle Bill Maxey Toyota 16751 Beach Boulevard 18881 Beach Boulevard Huntington Beach, CA 92647 Huntington Beach, CA 92648 841-3999 FAX# 841-4848 847-8555 FAX# 841-9857 3 Chet Clark 9 Dan Powers Beach Lincoln-Mercury Huntington Beach Acura 16800 Beach Boulevard 19131 Beach Boulevard Huntington Beach, CA 92647 Huntington Beach, CA 92648 848-7739 FAX# 847-1265 842-0095 FAX# 841-3524 4 Dave De Lillo 10 Roger Miller Bill Demarest Roger Miller Honda/Mitsubishi De Lillo Chevrolet 19232 Beach Boulevard 18211 Beach Boulevard Huntington Beach, CA 92646 963-1965 FAX# 964-7495 5 Ed Coscolluela Terry York Ford 11 Reader Board Sign Site 18255 Beach Boulevard City of Huntington Beach Huntington Beach, CA 92648 7991 Center Avenue 842-6611 FAX# 847-8788 Huntington Beach, CA 92647 6 Danny McKenna Mail to Don Stephens Barbara A Kaiser Director South County Volkswagen/Isuzu Economic Development 18711 Beach Boulevard City of Huntington Beach Huntington Beach, CA 92648 2000 Main Street 842-2000 FAX# 841-7819 Huntington Beach, CA 92648 TA sar 08/25/92 (1268r) urd No 3175 STATE OF CALIFORNIA ) C wJi OF ORANGE ) ss CITY Of hUNTINGTON BEACH ) I , CONNIE BROCKWAY, the duly elected, qualified C ,ty Clerk of the City of Huntington Beach and ex-offic ,o Clerk of the City Council of the said City, do herebv certifv tnat the whole number of members of the City Council of the City of Huntington Beach is seven, that the foregoing ordinance was read to said City Council at a regular meeting therof held on the gth day of Septemt�er 19 92 , and was again read to said City Council at a regular meeting therof hela on the 21st aay of September , 19 and was passed and adopted by the affirmative vote of at least a majority of all the members of said City Council AYES Councilmembers Robitaille, Moulton—Patterson Winchell Silva,. CrPenf MAcA11istPr,KP11W NOES Councilmembers None ABSENT Councilmembers None City Clerk and ex-officiaKlerk of the City Council of the City of Huntington Beach, California REQU 3T FOR CITY COS LO REDEVELOPMENT AGENCY ACTION ED 92-30 Date June 15, 1992 Submitted to Honorable Mayor/Chairman & City Council/Redevelopment Agency Members Michael T Uberuaga, City Administrator/Chief Executive Offi` er Submitted by Barbara A Kaiser, Deputy City Administrator/Economic Development Prepared by AUTHORIZE STAFF TO ASSIST THE HUNTINGTON BEACH AUTOMOBILE Subject DEALERS ASSOCIATION TO ESTABLISH A BUSINESS IMPROVEMENT DISTRICT Consistent with Council Policy? [ ] Yes New Policy or Exception Statement of Issue, Recommendation,Analysis, Funding Source,Alternatil a Actions,Attachments ^ 7_ �& 1926-1 STATEMENT OF ISSUE �'�o=-- � N.RK GI�'C ° TY The Huntington Beach Automobile Dealers Association (HBADA) would like to form a Business Improvement District (BID) as a method to administer fee setting (including dues), billing and collections relative to the costs of construction, operation, creating a trust fund and maintenance of the proposed electronic reader board sign The HBADA has requested that the City pay for a consultant to assist with the BID formation process Rather than hire a consultant, staff has the experience and knowledge to formulate and implement an action plan to form a BID The purpose of this memo is to request authorization from the City Council/Redevelopment Agency to assist the HBADA to form a BID RECOMMENDATION Authorize staff to provide assistance to the Huntington Beach Automobile Dealers Association to form a Business Improvement District ANALYSIS After learning about the Business Improvement District, the Huntington Beach Automobile Dealers Association requested funding assistance from the City of Huntington Beach to create a BID The BID would provide an administrative organization to establish a system for fee setting (including dues), billing and collections relative to the costs of construction, operation, trust fund, and maintenance of the proposed reader board sign The Parking and Business Improvement Area Law of 1989, Codified as Streets and Highway Code Article 36500 et seq , authorizes cities to establish parking and business improvement areas and to impose benefit assessment on businesses for designated purposes After evaluating the HBADA request, staff recommends that assistance be provided with existing Economic Development staff Limited advisory assistance from a qualified consultant, in addition to the City Attorney's office, would be needed to review the final documents Letters of support from all participating members of the HBADA were requested The Auto Dealers Association has agreed with this proposal and nine (9) out of twelve (12) dealerships have submitted letters of support (see attached) r J PIO 4/84 ED 92-30 June 15, 1992 Page Two FUNDING SOURCE The funds to cover staff costs and minimal consulting fees are available in the Huntington Center Redevelopment Project Budget for 1991/92 and 1992/93 ALTERNATIVE ACTION Deny approval of the request ATTACHMENTS 1 HBADA letter of April 27, 1992 2 Economic Development letter of May 12, 1992 3 Letters of support MTU/BAK/TA sar 06/03/92 (0929r) HUNTINGTON BEACH AUTOMOBILE DEALERS ® ASSOCIATION, INC L9 April 27 , 1992 RECEIVE Barbara Kaiser APR 2 91992 Deputy City Administrator ©1WIC NT op City of Huntington Beach o�""LapM£l Dear Barbara, As you know we plan to form a Business Development District We would plan to hire Ed Henning and Associates to assist us to complete this project Will the City pay Henning and Associates fee to perform this project? Also whatguidance and advice wish to give the Association in the formation of our special district Thanks for your help, S ncerely Jim p Ex utive Director CC Tom Andrusky Roger Miller Rick Evans P 0 Box 2700 ® Huntington Beach California 92647 City ®f Huntington Beach r� 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 5365582 Housing 5365542 Redevelopment 5365582 Fax (714)375 5087 May 12, 1992 Jim Upp, Executive Director Huntington Beach Automobile Dealers Association, Inc P O Box 2700 Huntington Beach, California 92647 Dear Jim This letter is in response to your letter of April 27, 1992, requesting reimbursement to hire a consultant to form a Business Improvement District We have reviewed your request and concluded that since our Economic Development staff has the knowledge needed to form a BID there is no need to hire a consultant The Economic Development Department can recommend providing assistance to the Automobile Dealers Association to form a BID with the stipulation that each dealer provide a letter to the Economic Development Department that indicates support for a BID a commitment not to protest and a statement indicating that the dealer is aware of the cost obligations relative to the construction operation and maintenance of the proposed electronic reader board sign Enclosed is a draft letter for your consideration In order to meet the agenda deadline for the Monday, June 15, 1992 Council/Agency meeting we would like to have the individual auto dealer letters by Friday, May 29, 1992 If you have questions regarding this letter please give me a call at (714) 536-5582 or Tom Andrusky at (714) 536-5224 Sincerely, -:�'�" G Barbara A Kaiser Deputy City Administrator/ Economic Development BAK jar xc Roger Miller, Roger Miller Honda Rick Evans, Huntington Beach Jeep Eagle Tom Andrusky, Economic Development HUN jLkNGTON BEACH DODGE, .,4C F 0_71 F-0 16555 BEACH BLVD ��� nodqL HUNTINGTON BEACH CA 92647 e a �lil TELEPHONE (714) 847 5515 0 Barbara Kaiser AY211992 Deputy City Administrator 1DEPAR7'M Economic Development /VQM{C DEV ®OF' 2000 Main Street PNjE,� Huntington Beach, CA 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting ( including dues) , billing, and , collection relative to the costs of construction, operation, trust fund , and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move a"-aead with assistance on the formation of a BID, I make the follow- ing declaration a ) I committ to support and not protest the formation of a BID a b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 The sign will be constructed on the 405 Freeway and Beach Boulvard at a cost of $361 , 000 The city will provide pay- ment of the sign, forgiving the first $100, 000 The dealers are responsible for and increase in sales tax revenue to the ot� ' If '26� , Or'i o\ er a f. e ye-r tcLioc zfl i c*� Y i eok _ L -1d cost will be $435 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the gaurantee period will be considered expired, and the trust re- funded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maitenance and programming agree- ment with Electra-Media for sixty months The cost rill be $4000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 50/. annually My present estimated cost is $400 00 per month r i-Jod T 16555 BEACH BLVD d7®dgLm HUNTINGTON BEACH CA 92647 u n j TEI EPHONE (714) 847 5515 a o 1s3 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign pro3ect as a portion of many 3oint programs to improve the City' s economic base and a city to do business in Sincerely, R 18211 BEACH BOULETELEPHONE 847-6087NT549333 BEACH CALIF 92648 May 19, 1992 RELLInD Barbara Kaiser MAY 2 1 1992 Deputy City Administrator Economic Development DEPARTMENT OF 2000 Main St �_N' IC D VELOPMEr,— Huntington Beach, Ca 92648 Dear Ms Kaiser We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting (including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration a) I committ to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Blvd at a cost of $361,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for an increase in sales tax revenue to the City of $261,000 over a five year period My present estimated cost will be $435 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maintenance and programming agreement with Electra-Media for sixty months The cost will be $4000 per month includ- ing electricity The agreement includes a cost of living increase based on CPI capped at 57 annually My present estimated cost is $400 per month d � Page 2 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 207 of the time on the Reader Board for Public Service Announcements Any questionable announcement will be re- viewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I enthusiastically endorse the reader sign project as a portion of many joint pro- grams to improve the City's economic base and a city to do business in Since l/y, Dave DeLillo President DD/sh cc Rick Evans Huntington Jeep Eagle RECEIVEW o QM MAY 2 2 Ige? HUNTINGTON BEACH DEPARTMENT C, Barbara Kaiser "GNOMIC DEVLL,,1 Deputy City Administrator Economic Development 2000 Main Street May 20, 1992 Huntington Beach, CA 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Indrovement DisLrict (BTD) This BID wOU10 establish a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I committ to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 The sign will be constructed on the 405 Freeway and Beach Boulvard at a cost of $361 ,000 The city will provide pay- ment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of $261 , 000 over a five year period My present estimated cost will be $435 00 for a maximum of 60 months into a trust fund This monev will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled , the gaurantee period will be considered expired, and the trust re- funded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maitenance and programming agree- ment with Electra-Media for sixty months The cost will be $4000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month 19232 Beach/Boulevard • Huntington Beach California 92648 • 714 963 1959 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign pro3ect as a portion of many 3oint programs to improve the City' s economic base and a city to do business in Sincerely, i ogv MI President REACH LINC®LN-MERL,.jRY 16800 Beach Blvd P O Box 2540 Huntington Beach Calif 92647 ® (714) 848 7739 May 20, 1992 RECEIVED Barbara Kaiser MAY 22 1992 Deputy City Administrator DEPARTMENT ®P Economic Development � � 2000 Main street ^GNOMIC ®EVELOP`M`` Huntington Beach, CA 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I maze the follow- ing declaration (a) I committ to support and not protest the formation of a BID (b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulvard at a cost of $361,000 The city will provide pay- ment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of $261, 000 over a five year period My present estimated cost will be $435 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired, and the trust re- funded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month s P 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announce- ment will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign proDect as a portion of many 3oint programs to improve the City' s economic base and a city to do business in Sincerely, L � Peter Chang President PC/n]s E R R �x FORD Barbara Kaiser Deputy City Administrator M��1 Qol Economic Development �Qp,�t� e\VEV® 2000 Main Street Huntington Beach, CA 92648 EG��10 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting ( including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I committ to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost oblig- ations 1 The sign will be constructed on the 405 Freeway and Beach Boulvard at a cost of $361 ,000 The city will provide pay- ment of the sign, forgiving the first $100,000 The dealers are responsible for and increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $435 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the gaurantee period will be considered expired, and the trust re- funded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maitenance and programming agree- ment with Electra-Media for sixty months The cost will be $4000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month Select Your Dealership As Carefully As You Select Your Car 118255 Beech Blvd Huntington Beech CA 92648 (714)842-6611 (213)629-8177 Fax(714)B47-8788 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City' s economic base and a city to do business in Sincerely, TERRY YORK FORD Ed Coscolluela President May 22, 1992 I May 20, 1992 AY 2 b 1992 Barbara Kaiser DEPART Deputy City Administrator no MIC pEV��OF Economic Development PM '1` 2000 Main Street Huntington Beach, Calif 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) The BID would establish a system for fee setting (including dues) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points as set forth below I agree with the deal points and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulvard at a cost of $361,000 The city will provide payment of the sign, forgiving the first $100,000 The dealers are responsible for an increase in sales tax revenue to the City of $261,000 over a five year period Each dealers estimated cost will be $435 00 for a maximum of 60 months, to be placed into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired, and the trust re- funded to the Dealers Each Dealer is to receive his pro-rata contribution plus interest 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually Each Dealer ' s estimated cost is $400 00 per month BILL Ill AXEY TOYOTA 18881 BEACH BOULEVARD HUNTINGTON BEACH CALIFORNIA 92648 0 PHONE (714) 847 8555 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 200 of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign pro3ect as one of many 3o.int programs to improve the City' s economic base Sincerely, David R Goldman President Bill Maxey Toyota, Inc DRG/caa BILL MAXEY TOYOTA 18881 BEACH BOULEVARD HUNTINGTON BEACH CALIFORNIA 92648 0 PHONE (714)847 8555 b r 0 Jee May 21 , 1992 RECEIVED Barbara Kaiser MAY 26 1992 Deputy City Administrator Economic Development DEPARTMENT OF 2000 Main Street `'GNOMIC DEVELOPMEN Huntington Beach, CA 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting ( including dues ) , billing, and collection relative to the costs of construction, operation , trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommence that the City Council move ahead with assistance on the formation of a BID, I make the follow- ing declaration a) I committ to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obliga- tions 1 The sign will be constructed on the 405 Freeway ano Beach Boulevard at a cost of $361 , 000 The city will provide pay- ment of the sign, forgiving the first $100 ,000 The dealers are responsible for an increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $435 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired, and the trust re- funded to the Dealers Each to receive his contibution plus interest 16751 Beach Boulevard Huntington Beach CA 92647 (714) 841-3999 (310) 592-5647 FAX (714) 841-4848 9 4 2 The Dealers will sign a maintenance and programming agree- ment with Electra-Media for sixty months The cost will be $4 , 000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this ' term 4 The city will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Associa- tion, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City' s economic base and a city to do business in Sincerely, 39 Rick A Evans President RAE/lcw HUNTINGTON OBEACH AC URA 19131 Beach Boulevard RECEIVED1 (800) 96 ACURA Huntington Beach, CA 92648 (F&I Ofice) FAX (714) 841 3524 (714) 842 0095 MAY 2 b 1992 (Bus Office) FAX (714) 841 3126 DEPARTMENT OF May 22 , 1992 ''GNOMIC DEVELOPMEP Ms Barbara Kaiser Deputy City Administrator Economic Development 2000 Main Street Huntington Beach, Ca 92648 Dear Ms Kaiser, We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement Dis- trict (BID) This BID would establish a system for fee sett- ing ( including dues ) , billing, and collection relative to the costs of construction, operation, trust fund, and maintenance of the proposed electronic reader board sign In order for the city staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration A) I commit to support and not protest the formation of a BID B ) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 ) The sign will be constructed on the 405 Freeway and Beach Boulevard at a cost of $361 ,000 The city will provide payment of the sign, forgiving the initial $100 , 000 The dealers are responsible for a any increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $435 for a maximum of 60 months into a trust fund The money will be held in trust with interest At the end of each year an evaluation will be held by the city to determine if the dealers have met their sales tax obligation At which time the obligation has been fulfilled, the guarantee period will be con- sidered expired, and the trust fund monies refunded to the dealers Each dealer will be paid his prorata contribution plus interest .r 2 ) The dealers will sign a maintenance and programing agreement with Electra-Media for sixty months The cost will be $4,000 per month including electricity The agreement includes a cost of living increase based on CPI capped at So annually My present est- imated cost is $400 per month 3 ) The City/Agency will lease the sign to the auto deal- ers for 15 years with additional consideration to ex- tend beyond this term 4 ) The city will be assigned 200 of the time on the Reader Board for public service announcements Any questionable announcements will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I enthusiastically endorse the reader sign project as a portion of many joint programs to improve the City s economic base and a city to do business in Sincerely, Daniel L Powers Senior Vice Pres cc Rick Evans 18835 Beach Boulevard CAJ V PBELLo Huntington Beach California 92648 INISSAIN/HUNTINGTON BEACH (714)842 7781 (213) 592 1463 FAX(714)848 6569 May 21, 1992 RE Barbara Kaiser MAY b 1992 Economic tDevelopm Development ®EPARTM,,�N ENT OF 2000 Main Street ®MlC DEVELOpMEP Huntington Beach, CA 92648 Dear Ms Kaiser We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting (including dues), billing and collection relative to the costs of construction, operation, trust fund and maintenance of the proposed electronic reader board sign In order for the City staff to recommend that the City Council move ahead with assis tance on the formation of a BID, I make the following declaration a) I commit to support and not protest the formation of a BID b) I have read the proposed Dealer/Agency deal points I agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freewav and Beach Boulevard at a cost of$361,000 The City will provide payment of the sign, forgiv- ing the first $100,000 The dealers are responsible for an increase in sales tax revenue to the City of $261,000 over a five year period My present estimated cost will be $435 00 for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year, an evaluation will be held by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be con- sidered expired and the trust refunded to the dealers, each to receive his contribution plus interest THE CiVILiZE® APPROACH19 .e 2 The dealers will sign a maintenance and programming agreement with Electra-Media for 60 months The cost will be $4,000 per month, in- cluding electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month 3 The City/Agency will lease the sign to the auto dealers for 15 years with additional consideration to extend beyond this term 4 The City will be assigned 20% of the time on the reader board for Public Service Announcements ents Any questionable announcement will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association, I en- thusiastically endorse the reader sign project as a portion of many joint programs to improve the City s economic base and a city to do business in Since ly, o n B T Campbell II, C PA President Danny McKenna s 0 o Q South Coupty itECEIVE Hof wagen/lsuz June 17 , 1992 JUN1 1992 HIV T QF Ms Barbara kaiser EV���� �+ Director of Economic Development Citv of Huntington Beach P 0 Box 190 Huntington Beach , CA 92648 Dear Ms kaiser We ask the Economic Development Department of the City of Huntington Beach to provide assistance to our Auto Dealers Association in the formation of a Business Improvement District (BID) This BID would establish a system for fee setting ( including dues ) , billing and collection relative to the costs of construction, operation, trust fund and maintenance of the proposed electronic reader board sign In order for the City staff to recommend that the City Council move ahead with assistance on the formation of a BID, I make the following declaration a I commit to support and not protest the formation of a BID b I have read the proposed Dealer/Agenev deal points and agree with the deal points as listed below and the estimated cost obligations 1 The sign will be constructed on the 405 Freeway and Beach Boulevard at a total cost of $361 , 000 The City will provide payment of the sign, forgiving the first $100, 000 The dealers are responsible for the increase in sales tax revenue to the City of $261 ,000 over a five year period My present estimated cost will be $435 00 per month for a maximum of 60 months into a trust fund This money will be held in trust with interest At the end of each year an evaluation will be made by the City to determine if the dealers have met their sales tax obligation At any such time as that obligation has been fulfilled, the guarantee period will be considered expired, and the trust refunded to the Dealers Each to receive his contribution plus interest 2 The Dealers will sign a maintenance and operating agreement with Electra-Media for sixth months The cost will be $4 , 000 per month including electricity The agreement includes a cost of living increase based on CPI capped at 5% annually My present estimated cost is $400 00 per month (Cont 'd Next Page) 18711 Beach Boulevard Huntington Beach California 92648 (714) 842 2000 (213) 592 1383 ' ' Ms Barbara Kaiser , Page 2 3 The City/Agency will lease the sign to the auto dealers for 15 vears with additional consideration to extend beyond this term 4 The City will be assigned 20% of the time on the Reader Board for Public Service Announcements Any questionable announcements will be reviewed with the Dealers Association Executive Committee Along with other members of the Huntington Beach Auto Dealers Association , I enthusiastically endorse the reader board sign project as a portion of many joint programs to improve the City' s economic base and a city in which to do business t Sin ! , Danny McKenna DJM dgs President cc Jackie Irons File #,REQUEST FO' REDEVELOPMENT P � ENCY ACTION t r�1sE n J—J v RH 91-76 01,15 F Date November 4 1991 l 1 Submitted to Honorable Chairman and Redevelopment Agency Members Submitted by Michael T Uberuaga, Chief Executive Of Prepared bysw '' Barbara A Kaiser, Deputy City Administrator/Economic Development Subject HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS Consistent with Council Policy Yes [ ] New Policy or Exception Statement of Issue Recommendation Analysis Funding Source Altern itive Actions Attachments STATEMENT OF ISSUE �' ° " cz�v �� xk CIT A draft of the Huntington Beach Auto Mall Feasibility Analysis was presented to the Mayor and City Council at the meeting of September 9, 1991 The report is presented to you for final review and acceptance There have been two additions to the report including a letter from South County Volkswagen and a letter from the MaceRich Company RECOMMENDATION Accept the Huntington Beach Auto Mall Feasibility Analysis and authorize staff to implement the recommendations as presented ANALYSES At the City Council of May 6, 1991 a contract was approved for a consultant to assist in the preparation of an Auto Mall Feasibility Analysis Staff and the consultant have worked closely with the Huntington Beach Auto Dealers Association to formulate an action plan to bring about the expansion and retention of new car sales in the City of Huntington Beach and thereby strengthen the City's sales tax revenue base The Auto Mall Feasibility Analysis provides an action plan that can be implemented to achieve these goals The analysis concluded that automobile dealership sales make a significant contribution to the City's tax base Accordingly, it is in the City's best interest to retain existing dealerships attract new dealerships and promote Huntington Beach as an auto trade area It was also concluded that an auto mall of significant size is not viable now because suitable property is not available, the economics are prohibitive and because of insufficient current dealer commitment The recommendations of the report are as follows A Evaluate and consider land purchases to implement an auto center on the south side 0 of Edinger Avenue west of Beach Boulevard (potential for three dealerships to relocate) ! 4 PIO/1/85 'RAA RH 91-76 November 4, 1991 Page two B Consider development of a joint advertising program in conjunction with the Huntington Beach Auto Dealers Association that would include a reader board sign on the I-405 Freeway, create identity for all dealers and promote the City of Huntington Beach Auto Dealers as a group C Consider provision of assistance to selected auto dealers for relocation near I-405 /Beach Boulevard, expansion of existing facilities and addition of new franchises D Enchancement of the existing dealership district properties would include consideration of the following construction of customer parking turnout bays at the curb development of common architectural identity (building facades building color landscape palette sidewalk treatment, development of offsite facilities for vehicle storage/employee parking, and development of a common marketing identity (advertising, public relations, attention getting devices and sign program) To date the City Council has authorized staff to bid on properties owned by the Resolution Trust Corporation, staff is in discussion with the Auto Dealers on the reader board agreement deal points and discussions have been held with the Campbell Automotive Group regarding a request for assistance to purchase land for a Saturn Dealership on Beach Boulevard Also, the urban design project for Beach Boulevard, proposed as part of the General Plan Update will include review of signing/orientation land use and access/egress for all businesses on Beach Boulevard FUNDING SOURCE Huntington Center Redevelopment Project budget contractual services account funded the Auto Mall Feasibility Analysis No funds are required for this action ALTERNATIVE ACTION Do not approve the recommended action ATTACHMENT Auto Mall Feasibility Analysis MTU/BAK/TA jar 9777r i JJ ICI 11111 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIilllllllllllllllllllllllllllllllllll�lllllllllllll Huntington Beach Auto Mall Feasibility Analysis Department of Economic Development September 1991 CITY OF HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS City Council/Redevelopment Agency Peter Green Mayor Jim Silva Mayor Pro Tem Jack Kelly Councilman Don MacAllister Councilman Linda Moulton-Patterson Councilwoman Earle Robitaille Councilman Grace Winchell Councilwoman Michael T Uberuaga City Administrator Barbara A Kaiser Deputy City Administrator/ Director, Economic Development Prepared By Dan Mispagel & Associates 5020 Campus Drive Newport Beach, CA 92660 September 1991 TABLE OF CONTENTS EXECUTIVE SUMMARY --- Phase I- Feasibility Evaluation Page Scope of Work 1 Analysis 1-4 Findings 4 Conclusions 5 Recommendations 5 Dealer Association Review 6 Current Dealership Locations 7-10 Phase II- Site Determination Scope of Work 11 Site Location Study 11-12 Dealer Relocation Analysis 12 Meetings with Dealers 12 Beach Boulevard Evaluation 13 Conclusions 14 APPENDIX --- Site Diagram Letter to Auto Dealers-August 1991 Letter from Auto Dealers- Auto Center-August 1991 Letter from Auto Dealers- Reader Board Sign-September 1991 Letter from South County VW/Isuzu- September 1991 Letter from MaceRich Co -Huntington Center-September 1991 r EXECUTIVE SUMMARY INTRODUCTION The Huntington Beach Auto Dealers Association asked for assistance to evaluate the concept of an auto mall to be located within the Huntington Center Redevelopment Project Area or at other sites near the I-405 Freeway As a result of this request, the City Council at their meeting of May 6, 1991, approved a contract with a consultant, Dan Mispagel & Associates, to assist in the preparation of an Auto Mall Feasibility Analysis, which had two phases They are Phase I- Feasibility Evaluation (macro area analysis, identify existing and proposed malls, competition factors, existing dealerships, other potential participants, meetings with City staff) and Phase II- Site Determination (analysis of potential sites, current dealer sites, preliminary site schemes, financial analysis, a strategy to move ahead) City staff and the consultant worked together closely in the preparation of this report A summary of the conclusions and recommendations are outlined below CONCLUSIONS * Automobile dealership sales make a significant contribution to the city tax base Accordingly it is in the City's best interest to * Retain existing dealerships * Attract new dealerships * Promote City as auto trade area * Auto Mall of significant size not viable now * Suitable property not available * Economics prohibitive * Insufficient dealer commitment now t EXECUTIVE SUMMARY CONTINUED RECOMMENDATIONS * Evaluate and consider land purchase to implement Auto Mall on the south side of Edinger Blvd west of Beach Boulevard * Develop joint advertising program in conjunction with the Huntington Beach Auto Dealers Association * Reader board sign on I-405 Freeway * Create identity and promote city dealers * Provide assistance to selected auto dealers for * Relocation near I-405 and Beach Boulevard * Expansion of existing facilities * Addition of new franchises * Enhancement of the existing dealership district properties to include consideration of the following * Develop customer parking turnout bays at curb * Develop common architectural identity - Building facades - Color of buildings - Landscape palate - Sidewalk treatment * Develop offsite facilities for - Vehicle storage - Employee parking * Develop common marketing identity - Advertising and PR - Attention getting devices - Sign program 1 CITY OF HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS- PHASE I JUNE 28, 1991 SCOPE OF WORK -Macro area analysis and market research relating to Orange County region and viability of an Auto Mall in Huntington Beach -Locate and identify existing and proposed Auto Malls and other defined retail auto sales market areas -An evaluation of "competition factors" , i e desire to retain existing dealers in Huntington Beach, attract new dealers, and timing of development in relation to other malls in the market area -Existing dealership review, including existing locations (parcel size, owned or leased building, sizes, size of other uses) and interviews with dealers, distributors and manufacturers and sales tax contribution trends related to auto sales -Identification and qualification of other participants for the proposed auto mall -Meetings with city personnel relative to progress with the study and resultant conclusions ANALYSIS The primary trade area analysis encompassed the City of Huntington Beach and the surrounding communities of Central Orange County Additional automotive trade areas were identified for purposes of determining the effects of proposed relocations of automobile dealerships within the trade area The direction of urban infill and suburban growth were considered along with an analysis of traffic patterns and demographic trends All factory franchised new automobile dealership facilities in the primary trade area were located and identified on the map which accompanies this report L R ANALYSIS (CON'T) Dealership locations are categorized as follows 1 Auto Malls Master planned and developed in conjunction with city redevelopment agency Typically freeway oriented with excellent visibility and access Use restrictions and protective covenants which control development standards, signs, etc A Garden Grove Auto Center located at the 22 freeway and Brookhurst Street Dealerships Ford, Toyota Dodge, Hyundai, Subaru and Mitsubishi B Santa Ana Auto Mall located at the 55 freeway and Fdinger Avenue Dealerships BMW, Jeep/Eagle, Saturn, VW-Audi, Chrysler-Plymouth, Isuzu and Hyundai 2 Automobile Trade Areas Strip commercial develop- ments "Auto Row" facilities located on major arterial streets Typical suburban configuration A Costa Mesa Harbor Boulevard between Baker Street and 19th Street B Huntington Beach Beach Boulevard between Heil Avenue and Yorktown Avenue 3 Freestanding Dealerships A Westminster Beach Boulevard, Westminster Boulevard and Garden Grove Boulevard B Garden Grove Harbor Boulevard between Westminster Avenue and Trask Avenue C Santa Ana 17th Street, Grand Boulevard and 1st Street A detailed review and analysis of the locations of existing franchises was made to determine the ability to locate or relocate auto dealerships within the City of Huntington Beach Additional information was gathered by discussing dealership 3 development and dealer network planning with major automobile manufacturers Emphasis was also placed upon the legal requirements of California Vehicle Code Section 3062 , which defines a dealerships relevant market area Prior to establishing a new dealership or relocating an existing one further than one mile from its current location, the vehicle manufacturer is required to give notice to its existing dealers within a ten mile straight line radius An existing dealer may file a protest against the proposed location A hearing to determine the proposed dealerships impact on the relevant market area is then held before the California New Motor Vehicle Board Indepth interviews were conducted with all of the current dealers in Huntington Beach to determine their existing facility ownership, lease terms, size and adequacy The current and projected sales volume of each dealership was determined and the dealer was asked to indicate his desire to move into an Auto Mall, if available, or renovate his/her facilities at their existing location The existing dealers in Huntington Beach are as follow 1 Huntington Beach Dodge 16555 Beach Blvd 2 Huntington Beach Chrysler/Plymouth 16661 Beach Blvd 3 Huntington Beach Jeep/Eagle 16751 Beach Blvd 4 Beach Lincoln/Mercury 16800 Beach Blvd 5 Beach Oldsmobile/Mazda 17331 Beach Blvd 6 DeLillo Chevrolet 18211 Beach Blvd 7 Terry York Ford 18255 Beach Blvd 8 South County Volkswagon/Isuzu 18711 Beach Blvd 9 Campbell Nissan 18835 Beach Blvd 10 Bill Maxey Toyota 18881 Beach Blvd 11 Huntington Beach Acura 19131 Beach Blvd 12 Performance M-tsubishi 19202 Beach Blvd 13 Roger Miller Honda 19232 Beach Blvd FINDINGS * Ten of the thirteen dealers desire to move to an auto mall if located properly and at a reasonable cost * The dealers would like to have a reader board sign on the freeway so that the Huntington Beach auto dealers could be identified * Several dealers have requested that the City provide some guidance to those dealers who wish to expand as to what their requirements will be before the dealer spends a lot of money on architect fees * Many dealers feel that the traffic volume and speed causes many customers to avoid shopping on Beach Boulevard, particularly in the summer * If an Auto Mall cannot be developed in Huntington Beach, then the existing dealers want to be tied together as a selling unit by identification, advertising and a common theme * Other franchises could be enticed to locate in the City if an Auto Mall is available at a reasonable price These additional franchises would most likely be Saturn, Hyundai, Infiniti, Volvo and Daihatsu 5 SUMMARY The condition of the national economy and the automobile industry are not conducive to near term addition of new dealerships in Orange County The trend is to consolidation of dealerships in auto malls Auto Malls have a tendancy to polarize the marketplace making it difficult for stand alone dealerships to survive Auto Mall development is to a great extent driven by city assistance to dealers and manufacturers The City of Huntington Beach has an opportunity to position its dealers to successfully achieve market penetration in central Orange County CONCLUSIONS * City of Huntington Beach should consider creation of an Auto Mall at or near the I-405 freeway If this is not feasible then every effort should be made to create an identity and promote the area as an "Auto Row" * It is concluded that a reader board sign on the I-405 freeway is needed and that the City of Huntington Beach and the auto dealers should take cooperative action to implement a sign program RECOMMENDATIONS * Proceed with site determination phase to include alternate locations, availability and price of property and city assistance * Develop identity for existing Huntington Beach auto dealers Joint effort marketing program by Huntington Beach Auto Dealers Association to create common identity and advertising * City of Huntington Beach work with Dealers Association to develop and implement a Freeway Signage program 6 DEALER ASSOCIATION REVIEW A presentation of the market research phase of this pro3ect was made to the Huntington Beach Auto Dealers Asssociation at their regularly scheduled meeting in June The association was in accord with the pro3ect work completed to date and they were anxious for the second phase to proceed as quickly as possible 7 CURRENT DEALERSHIP LOCATIONS HUNTINGTON BEACH 1 Huntington Beach Dodge 16555 Beach Blvd 2 Huntington Beach Chrysler/Plymouth 16661 Beach Blvd 3 Huntington Beach Jeep/Eagle 16751 Beach Blvd j 4 Beach Lincoln/Mercury 16800 Beach Blvd 5 Beach Oldsmobile/Mazda 17331 Beach Blvd 6 DeLillo Chevrolet 18211 Beach Blvd 7 Terry York Ford 18255 Beach Blvd 8 South County Volkswagon/Isuzu 18711 Beach Blvd 9 Campbell Nissan 18835 Beach Blvd 10 Bill Maxey Toyota 18881 Beach Blvd 11 Huntington Beach Acura 19131 Beach Blvd 12 Performance Mitsubishi 19202 Beach Blvd 13 Roger Miller Honda 19232 Beach Blvd WESTMINSTER 16 Mike McCarthy Buick/GMC/Subaru 15550 Beach Blvd 17 Allen Kane Chevrolet 7600 Westminster Blvd 18 Elmore Toyota 15300 Beach Blvd 19 Bob Longpre Pontiac/Suzuki 13600 Beach Blvd 8 20 Penske Honda 13750 Beach Blvd 21 Lexus of Westminster 13590 Beach Blvd 22 Sunset Ford 5440 Garden Grove Bl GARDEN GROVE 24 Garden Grove Dodge/Hyundai/ Subaru 9666 Trask Ave 25 Superior Audi/VW 13631 Harbor Blvd 26 Garden Grove Mazda 13650 Harbor Blvd 27 Campbell Ford 9222 Trask Ave 28 Eddie Hopper Chevrolet 10511 Garden Grove B1 29 County-Wide Chrysler-Plymouth/ Jeep/Eagle 10080 Garden Grove Bl 30 Orange County Volvo 10120 Garden Grove Bl 31 Garden Grove Mitsubishi 9898 Trask Ave 32 Quality Nissan 13731 Harbor Blvd 33 Toyota of Garden Grove 9444 Trask Ave SANTA ANA 37 Santa Ana Chrysler-Plymouth/ Hyundai/Isuzu 1405 Auto Mall Dr 38 Honda Santa Ana 2114 E First Street 39 Commonwealth VW/Audi 1450 Auto Mall Dr 40 Crevier BMW 1500 Auto Mall Dr 41 Santa Ana Nissan 2001 E 17th Street 9 42 Santa Ana Mazda (Closed) 1501 Auto Mall Dr 43 Jeep/Eagle of Santa Ana 1415 Auto Mall Dr 44 Reason Buick 909 N Grand Avenue 45 Guaranty Chevrolet 711 E 17th Street 46 Saturn of Santa Ana 1350 Auto Mall Dr COSTA MESA 49 Campbell Mazda 1425 W Baker Street 50 Atlas Chrysler-Plymouth 2929 Harbor Blvd 51 Costal Acura 2925 Harbor Blvd 52 Harbour Infiniti 2888 Harbor Blvd 53 South Coast Dodge 2888 Harbor Blvd 54 University Honda/GMC/Suzuki 2860 Harbor Blvd 55 Connell Chevrolet 2828 Harbor Blvd 56 Tuttle-Click Nissan 2845 Harbor Blvd 57 Harbor Mitsubishi 2833 Harbor Blvd 58 Johnson & Son Lincoln/Mercury 2626 Harbor Blvd 59 Nabors Cadillac 2600 Harbor Blvd 60 Nabors Buick 2600 Harbor Blvd 61 Orange Coast Jeep/Eagle 2524 Harbor Blvd 62 University Oldsmobile/Pontiac 2480 Harbor Blvd 63 Theodore Robins Ford/Isuzu 2060 Harbor Blvd 64 Toyota of Coata Mesa 1966 Harbor Blvd 65 Volvo of Costa Mesa 1960 Harbor Blvd u �_f H ` q a WNUVUI Avt > G 671 u bKUVt 3 W Y CHAPMAN AVE o ORANGE CHAPMAN za o ? W �c Orange Crusn mrercnan_ge 3 9 Malfuncrlon JP'' m m u' L4 YETA AVE a _ Juncrlo" ^ W = 'o P�3 GARDEN GROVE �T F 28 BLVD Ci u, � 22 f- y'qA 29 }i y@��O ��� W ?ME > rn = TRASPC 19' ` 27 33 24 31 25 26 AVE Q v~ ft R i 4 S 41 ® S7 U u wcsrwuNsh 32 AVE LL 1�TH TER AVE 1N STMINSTER 1 7 201VD cr Y � ``�o WESTMINSTER N y�"�� � m �. ° 3 Z Q ❑ 4TH m 0� �Q'3. � = H O 44 s BOLSA m ° AVE 1ST m ST �1 0 QL,� 1 'AIDWAY CITY ' 3a F N 16 SANTA ANA N TUSTIN 37 IGE i u CENTER uw ❑ 463943 +� ° uw 3 R a MC FADDEN A\4042 I ,a Q EDINGER F AVE m -—'� o ❑ z = kn EDINGER N NUNTIPI6TOP1 o ? AVE Y O HARBOUR N o z Y FOUNTAIN W ❑ u �q 4 S VALLEY Q �G WARNER 3 m AVE WARNER O AVE u rho FO/�CFP �o�� BOLSA CHICA u' Z DYER RD w COLOGICAL f- ET ST AC ARTHUR BLVD 'n TALBR 6 L ry F 7 N by �O Irvine y�RESERVE s EWS AVE >•wa cr Ln w � W1snt7on 9 Ix W G 1 er1ELD AVE a 3 H��!TINGTON 50 552 3 49 W4YNF 51 J Cy q3. ? Z 56 Sa ZER f4WKAT < 13EACH AVE 57 55 PACIFIC ADAMS 0W. 5a �/�� ,S Q Ix cr 59 w FAIR J�eQis �~ Qtr IRVINE olECQ �roti IJ.t O = d_ 60 > DR ��. l0 ♦ � Z y 61 Q„ ?S va g 62 LL q� AVE sr N\VERSITY DR w i w m �pRIA 63T F o UPPER ,wog O m HAMILTON J\ � 19TH ST 65 N V"AOWB Y yP� ST GICAL NOV BER RBERvE COSTA MESA $� 1992 MAP INDICATING LOCATION 3 OF AUTO DEALERSHIPS 11 CITY OF HUNTINGTON BEACH AUTO MALL ANALYSIS- PHASE II AUGUST 28, 1991 SCOPE OF WORK -Analyze potential sites of land within or near the Huntington Center Commercial Redev..lopment Project which might be a feasible auto mall location, taking into consideration -Existing dealer circumstances -Access, visability, signs, etc -Ideal size and dealer mix for an auto mall -Evaluate current Beach Boulevard location of Auto Dealers and opportunities for enhancement of this district -Develop recommendations based upon the foregoing SITE LOCATION STUDY An analysis of potential site locations for an Auto Mall was undertaken on a citywide basis The following areas were reviewed and considered 1 McDonnell Douglas property at Bolsa & Springdale 2 Huntington Center property 3 Beach Boulevard north of Warner Avenue 4 South side of Edinger Blvd west of Beach Blvd The McDonnell Douglas site was rejected because it did not provide freeway exposure or access The Huntington Center property met most criteria for a viable location, however the owners are not interested in redeveloping the property to automotive use at this time Most of the property on Beach 12 Boulevard is not located in a redevelopment area Parcels of a sufficient size and configuration for multiple auto dealership development were not available on the open market N potential 9 1 acre auto mall site was identified within the Huntington Center Redevelopment Project on the south side of Edinger Boulevard west of Beach Boulevard It appears that three high volume dealerships could be relocated to this site and create a meaningful retail draw DEALER RELOCATION ANALYSIS An in-depth study of every Huntington Beach auto dealer was completed to review their lease term, renewal options, monthly rental, fixed and/or Cost of Living Index rental increases, land ownership and projected sales tax generation From this study a determination was made as to which dealerships were at risk of losing their facilities and the timing of required assistance Three dealers were determined to have the most immediate need for consideration of relocation assistance based upon lease expiration date and projected rental increases MEETINGS WITH DEALERS A meeting with the Huntington Beach Auto Dealers Association was held on August 20, 1991 to discuss the Phase II site determination findings At that time the 9 1 acre site on Edinger Boulevard was identified as a potential site for dealership relocation The association members were asked to define both individual and collective interest in the location A subsequent meeting was held with four of the highest sales volume dealers to determine their level of interest in proceeding with an Auto Mall Three of these dealers indicated a desire to participate in the proposed project and agreed to forward letters to the City outlining their intent Approval from their manufacturers to relocate the dealerships 13 and financial feasibility are necessary conditions of dealer participation BEACH BOULEVARD EVALUATION In addition to assisting with the relocation of dealers to an auto mall site, the City should concurrently take steps to assist the Huntington Beach dealers at their existing Beach Boulevard locations Real and perceived concerns about the Beach Boulevard "Super Street" will become more pertinent as the pro3ect moves closer to becoming a reality Enhancement of the existing dealership district properties should include consideration of the following -Develop customer parking turnout bays at curb -Develop common architectural identity -Building facades -Color of buildings -Landscape palate -Sidewalk treatment -Develop offsite facilities for -Vehicle storage -Employee parking -Develop common marketing identity -Advertising and PR -Attention getting devices -Sign program 14 CONCLUSIONS * Automobile dealerships sales make a significant contribution to the city tax base Accordingly it is in the City's best interest to * Retain existing dealerships * Attract new dealerships * Promote City as auto trade area * Auto Mall of significant size not viable now * Suitable property not available * Economics prohibitive * Insufficient dealer committment now RECOMMENDATIONS * Evaluate and consider land purchase to implement Auto Mall on south side of Edinger Boulevard west of Beach Boulevard * Develop 3oint advertising program in con3unction with the Huntington Beach Auto Dealers Association * Reader board sign on I-405 Freeway * Create identity and promote city dealers * Provide assistance to selected auto dealers for * Relocation near I-405 and Beach Blvd * Expansion of existing facilities * Addition of new franchises APPENDIX Site Diagram Letter to Auto Dealers-August 1991 Letter from Auto Dealers- Auto Center-August 1991 Letter from Auto Dealers- Reader Board Sign-September 1991 Letter from South County VW/Isuzu- September 1991 Letter from MaceRich Co -Huntington Center-September 1991 reee o ee j r e McFADDEN ■® ■ I s�ti i o�FC ■...■uses. O.c9 ® ccF � + WA A PM ®•• I ED O°° I t� I � ■ � ♦ee ED o°®o I �i ■ i� f ( ■ R iMuKKmLKmmmAAXw Manua CENTER DRIVE .■■same • � 1 1 (✓DISON PA.,FIIEIJT ee s e Sam.. 1----- �- -- - - - ------ - ----------- ♦e ee + °e S 1 . v� ■ I HUNTINGTON CENTER cc J ■ � � Cn `y I n ■ U W I / co L L_�L L l EDINGER AVE an C LT ■ ■ — ----tee ■ ■ ■ r Scale 1" - 2001 ■ ■I mm.■mum®m®®m a ■mm■...m.m.a.■■■■■■Mass■®®■■ I HUNTINGTON ENTER COMMERCIAL DISTRICT RED VELOPMENT PROJE�- - lapHUNTINGTON BEACH C4LIFORNIA AREA PLANNING DIVISION '{7bker.�ho.� /�•� eQ wN.C4 5& C1,j 4L"es �J City ®f Huntington Beach 2000 MAIN STREET CA LIFO RNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Economic Development 536-5542 August 16 1991 Rick Evans Pi esident Huntington Beach Auto Dealers Association Inc Huntington Jeep Eagle 16751 Beach Boulevard Huntington Beach Califoi nia 92647 Dear Mr Evans Results of our Auto Mall Feasabtlity Analysis identified a potential 9 1 acre auto center site within the Huntington Center Redevelopment Project Our consultant has indicated that three high—volume dealers could be located on this site (site diagram attached) We have started discussing a potential land purchase assisted by the Redevelopment Agency with members of your association subject to City Council review and approval We invite all members of the Huntington Beach Auto Dealers Association that may be interested in participating to make contact with Tom Andrusky at (714) 536-5224 All requests to participate will be evaluated in terms of best meeting the needs of the Auto Dealers Association and the City of Huntington Beach The timeframe for this land purchase opportunity is rather tight because of RTC requirements and the timetable of Terranomics to sell or lease to a major tenant Currently our auto mall consultant is reviewing the economics of the proposed land transaction which will be available in the next few weeks It is a pleasure working with the Huntington Beach Automobile Dealers Association We look forward to implementing this plan and other programs that will enhance the economic base of the City of Huntington Beach Sincerely Barbara A Kaiser Deputy City Administrator BAK/TA jar ®Ro m' 1 ) 0> 0 14 . JA HUNTiNGTON BEACH August 30, 1991 Mr Tom Androsky, Project Manager City of Huntington Beach 2000 Main Street Huntington beach Calif 92648 Dear Mr Androsky, It was a pleasure meeting with you, Barbara Kaizer and the consultants of the proposed auto mall in Huntington Beach I am writing this letter in behalf of Roger Miller Honda, Terry York Ford and DeLillo Chevrolet We all have a great interest in relocating our facilities to the 9 1 acres indentifted in the anaylsis This proposal is timely for both the city and the dealers The relocation would provide permanent sites for the various dealerships The dealers ' various existing leases are coming up for renewal and the rental rates will be prohibitive The proposed relocation site with modern, efficient facilities adjacent to the Huntington Beach mall will have increased sales and service immediately This location will benefit the customers by the proximity to the mall and the freeway and be convenient for other people from neighboring area The specific areas that need to be addressed by the dealers and the city jointly are as follows 1 Secure Land The dealers would have a problem in securing and holding the land for the interim period till facilities were completed Estimated time from start of drawings till completion would be 2 years 2 Current leases need to be addressed depending on timing of completed dealerships 3 Factory approval Once the dealers know the land and agreement with city are in place the dealers can then notify their respective manufacturers for their approval and clearance of the marketplace 4 Costs The estimated cost of an efficient facility for each dealership on 3 acres will be 3 million In order to make this economically feasible the land cost for the dealership would need to be $8 00 per square foot 19232 Beach Boulevard e Huntington Beach California 92648 • 714 963 19�9 HUNTINGTON BEACH August 30, 1991 Mr Tom Androsky Page 2 The individual dealer could arrange his own financing however, the use of non-tax free bonds with the city putting up the Letter of Credit would enable the dealers to accomplish this in a less costly manner and assure the financial viability of the dealership By working together, the city and the dealers can make this a very profitable long term joint effort Sincerel ger Miller, President RM so 19232 Beach Boulevard • Huntington Be ich California 92648 • 714 963 1959 Dn HUNTINGTON BEACH AUTOMOBILE DEALERS IN ® ASSOCIATION, INC September 3 , 1991 Mr Tom Andrusky Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re Electronic Readerboard Sign Dear Mr Andrusky In review of the conclusions of the Auto Mall Feasibility Analysis , the Huntington Beach Automobile Dealers Association (HBADA) would like to immediately pursue the installation cf an electronic reader- board , message center sign at the 405 Freeway, identifying the new car dealers of Huntington Beach as an Auto Center We respectfully request the participation of the City of Huntington Beach and propose the following 1 ) The City of Huntington Beach identify the site for the proposed sign along the 405 Freeway (Should be within the redevelopment district) 2 ) The City leases the site to the Huntington Beach Automobile Dealers Association for a term not less than 20 years at $1 00 per year 3 ) The HBADA will solicit and secure competitive bids for the proposed sign 4 ) The City of Huntington Beach purchases , leases or reimburses the association for the cost of the sign and installation 5 ) The HBADA will pay for the maintenance of the sign, including, power, programing, light bulbs, insurance, etc P 0 Box 2700 ® Huntington Beach California 92647 PAGE TWO We believe the electronic sign is our #1 priority as an Association of Auto Dealers and once installed will greatly enhance our ability to compete with the Auto Malls in the surrounding cities We appreciate the support the city has shown the Auto Dealers in recent years and we look forward to a greater volumn of sales and increased sales tax revenues by working together on this project Sincerely, HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOCIATION Rick Etians President South C®u my Volkswagen/Isom September 10 , 1991 RECEIVE® REDEVELOPMEN r DEp7 Ms Barbara A Kaiser , Deputy City Administrator City of Huntington Beach 2000 Main Street Huntington Beach , CA 92648 Dear Ms Kaiser In response to comments made at the City Council meeting last night , this is to reconfirm the information that was furnished to the Consultant doing the Auto Mall Feasibility Analysis Our dealership is definitely interested in reviewing the possibility of being a part of the auto center site within the Huntington Center Redevelopment Project mentioned in the analysis Sincer Danny McKenna Owner cc City Council Michael T Uberuaga , City Administrator 18711 Beach Boulevard Huntington Beach California 92648 (714) 842-2000 (213) 592-1383 r rri`1 t z r l September 30, 1991 Ms Barbara A Kaiser Deputy City Administrator Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Barbara After receiving your September 12 , 1991 letter and copy of the Auto Mall Feasibility Analysis , I spoke with Tom Andrusky regarding some concerns we have about the proposed Auto Mall Electronic Reader Board I have since reread the Auto Mall Analysis and offer the following thoughts We recognize the increasing importance of sales tax revenue to California cities and acknowledge that automobile dealerships have been a great source of sales tax revenue and are therefore highly coveted by most cities Huntington Beach is fortunate to have a very large group of dealers congregated on Beach Boulevard and their well-being and prosperity should be nurtured by the city Similarly, Huntington Beach Mall , which we own, is a ma3or contributor of sales tax and property tax revenue to Huntington Beach and is an asset worth assisting to achieve its growth potential Certainly these two non-competitive types of business can and should grow These uses are not necessarily highly compatible and ideally would be somewhat separated in physical presence if undeveloped land were available That not being the case in Huntington Beach and both businesses being in place in near proximity today, they should and must grow in place perhaps with some slight expansion of land made available through the Redevelopment Agency We think all of this can be accomplished without disadvantaging either the retail or the automobile sales but it must be handled with care and we do have some concerns �1 ' The Mae_xxe�RAwcix Company t s ;-,r s Ms Barbara S Kaiser September 30 , 1991 City of Huntington Beach Page 2 We are concerned that funds generated primarily through the incremental tax at Huntington Beach Mall will be disproportionately shared with Auto Dealers to encourage their relocation to the south side of Edinger We feel steps should be taken to give primary assistance to the future expansion of Huntington Beach Mall from where most of these funds are generated We are concerned that the proposed Electronic Reader Board that is virtually in the Mall ' s back yard will negatively impact the visibility and identity of Huntington Beach Mall and interfere with our ongoing efforts with the City of Huntington Beach to secure better identification for the Mall from the I-405 Freeway As always we are prepared to work with the Agency and the City to insure the economic vitality of the entire area We simply want you to be aware of our concerns and give them the benefit of your review We would de:tinitely like to consult with you about how our interests are effected before any decisions are reached Sincerely, THE MACERICH COMPANY O�WA��� t Claude S Keyzers , CSM Senior Vice President CSK/cr cc Tom Andrusky Mace Siegel Dana Anderson Art Coppola Mike Siegel w REQUEST FC REDEVELOPMENT , .3ENCY ACTION RH 91-72 Date October 21, 1991 J Submitted to Honorable Chairman and Redevelopment Agency Member Submitted by Michael T Uberuaga, Chief Executive Office wl Prepared by Barbara A Kaiser, Deputy City Administrator/Economic Development Subject HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS Consistent with Council Policy? X Yes [ ] New Policy or Exception Statement of Issue Recommendation Analysis Funding Source Alternative Actions Attachments STATEMENT OF ISSUE A draft of the Huntington Beach Auto Mall Feasibility Analysis was presented to the Mayor and City Council at the meeting of September 9, 1991 The report is presented to you for final review and acceptance There have been two additions to the report including a letter from South County Volkswagen and a letter from the MaceRich Company RECOMMENDATION Accept the Huntington Beach Auto Mall Feasibility Analysis and authorize staff to implement the recommendations as presented ANALYSIS At the City Council of May 6, 1991 a contract was approved for a consultant to assist in the preparation of an Auto Mall Feasibility Analysis Staff and the consultant have worked closely with the Huntington Beach Auto Dealers Association to formulate an action plan to bring about the expansion and retention of new car sales in the City of Huntington Beach and thereby strengthen the City's sales tax revenue base The Auto Mall Feasibility Analysis provides an action plan that can be implemented to achieve these goals The analysis concluded that automobile dealership sales make a significant contribution to the City's tax base Accordingly, it is in the City's best interest to retain existing dealerships attract new dealerships, and promote Huntington Beach as an auto trade area It was also concluded that an auto mall of significant size is not viable now because suitable property is not available, the economics are prohibitive and because of insufficient current dealer commitment The recommendations of the report are as follows A Evaluate and consider land purchases to implement an auto mall on the south side of Edinger Avenue west of Beach Boulevard PI O/1/85 RAA RH 91-72 October 21, 1991 Page two B Develop a joint advertising program in conjunction with the Huntington Beach Auto Dealers Association that-would include a reader board sign on the I-405 Freeway, create identity for all dealers, and promote the City of Huntington Beach Auto Dealers as a group C Provide assistance to selected auto dealers for relocation near I-405 /Beach Boulevard, expansion of existing facilities and addition of new franchises D Enchancement of the existing dealership district properties would include consideration of the following construction of customer parking turnout bays at the curb development of common architectural identity (building facades, building color, landscape palette, sidewalk treatment development of offsite facilities for vehicle storage/employee parking and development of a common marketing identity (advertising, public relations, attention getting devices and sign program) To date, the City Council has authorized staff to bid on properties owned by the Resolution Trust Corporation, staff is in discussion with the Auto Dealers on the reader board agreement deal points and discussions have been held with the Campbell Automotive Group regarding a request for assistance to purchase land for a Saturn Dealership on Beach Boulevard Also, the urban design project for Beach Boulevard proposed as part of the General Plan Update, will include review of signing/orientation, land use and access/egress for all businesses on Beach Boulevard FUNDING SOURCE Huntington Center Redevelopment Project budget contractual services account funded the Auto Mall Feasibility Analysis No funds are required for this action ALTERNATIVE ACTION Do not approve the recommended action ATTACHMENT Auto Mall Feasibility Analysis MTU/BAK/TA jar 9695r • Ilil IIIIII IIIIIIIIIIIIIIIIIIIIIillllllllllllllllllllllllllllllllllllllllllllllllllllllllll llliillllllll Huntington Beach Auto Mall Feasibility Analysis Department of Economic Development September 1991 IIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIIII CITY OF HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS City Council/Redevelopment Agency Peter Green Mayor Jim Silva Mayor Pro Tem Jack Kelly Councilman Don MacAllister Councilman Linda Moulton-Patterson Councilwoman Earle Robitaille Councilman Grace Winchell Councilwoman Michael T Uberuaga City Administrator Barbara A Kaiser Deputy City Administrator/ Director, Economic Development Prepared By Dan Mispagel & Associates 5020 Campus Drive Newport Beach, CA 92660 September 1991 TABLE OF CONTENTS EXECUTIVE SUMMARY --- Phase I- Feasibility Evaluation Page Scope of Work 1 Analysis 1-4 Findings 4 Conclusions 5 Recommendations 5 Dealer Association Review 6 Current Dealership Locations 7-10 Phase II- Site Determination Scope of Work 11 Site Location Study 11-12 Dealer Relocation Analysis 12 Meetings with Dealers 12 Beach Boulevard Evaluation 13 Conclusions 14 APPENDIX --- Site Diagram Letter to Auto Dealers-August 1991 Letter from Auto Dealers- Auto Center-August 1991 Letter from Auto Dealers- Reader Board Sign-September 1991 Letter from South County VW/Isuzu- September 1991 Letter from MaceRich Co -Huntington Center-September 1991 EXECUTIVE SUMMARY INTRODUCTION The Huntington Beach Auto Dealers Association asked for assistance to evaluate the concept of an auto mall to be located within the Huntington Center Redevelopment Project Area or at other sites near the I-405 Freeway As a result of this request, the City Council at their meeting of May 6, 1991, approved a contract with a consultant, Dan Mispagel & Associates, to assist in the preparation of an Auto Mall Feasibility Analysis, which had two phases They are Phase I- Feasibility Evaluation (macro area analysis, identify existing and proposed malls, competition factors, existing dealerships, other potential participants, meetings with City staff) and Phase II- Site Determination (analysis of potential sites, current dealer sites, preliminary site schemes, financial analysis, a strategy to move ahead) City staff and the consultant worked together closely in the preparation of this report A summary of the conclusions and recommendations are outlined below CONCLUSIONS * Automobile dealership sales make a significant contribution to the city tax base Accordingly it is in the City's best interest to * Retain existing dealerships * Attract new dealerships * Promote City as auto trade area * Auto Mall of significant size not viable now * Suitable property not available * Economics prohibitive * Insufficient dealer commitment now EXECUTIVE SUMMARY CONTINUED RECOMMENDATIONS * Evaluate and consider land purchase to implement Auto Mall on the south side of Edinger Blvd west of Beach Boulevard * Develop 3oint advertising program in con3unction with the Huntington Beach Auto Dealers Association * Reader board sign on I-405 Freeway * Create identity and promote city dealers * Provide assistance to selected auto dealers for * Relocation near I-405 and Beach Boulevard * Expansion of existing facilities * Addition of new franchises * Enhancement of the existing dealership district properties to include consideration of the following * Develop customer parking turnout bays at curb * Develop common architectural identity - Building facades - Color of buildings - Landscape palate - Sidewalk treatment * Develop offsite facilities for - Vehicle storage - Employee parking * Develop common marketing identity - Advertising and PR - Attention getting devices - Sign program 1 CITY OF HUNTINGTON BEACH AUTO MALL FEASIBILITY ANALYSIS- PHASE I JUNE 28, 1991 SCOPE OF WORK -Macro area analysis and market research relating to Orange County region and viability of an Auto Mall in Huntington Beach -Locate and identify existing and proposed Auto Malls and other defined retail auto sales market areas -An evaluation of "competition factors" , 1 e desire to retain existing dealers in Huntington Beach, attract new dealers, and timing of development in relation to other malls in the market area -Existing dealership review, including existing locations (parcel size, owned or leased building, sizes, size of other uses) and interviews with dealers, distributors and manufacturers and sales tax contribution trends related to auto sales -Identification and qualification of other participants for the proposed auto mall -Meetings with city personnel relative to progress with the study and resultant conclusions ANALYSIS The primary trade area analysis encompassed the City of Huntington Beach and the surrounding communities of Central Orange County Additional automotive trade areas were identified for purposes of determining the effects of proposed relocations of automobile dealerships within the trade area The direction of urban infill and suburban growth were considered along with an analysis of traffic patterns and demographic trends All factory franchised new automobile dealership facilities in the primary trade area were located and identified on the map which accompanies this report 2 ANALYSIS (CON'T) Dealership locations are categorized as follows 1 Auto Malls Master planned and developed in con3unction with city redevelopment agency Typically freeway oriented with excellent visibility and access Use restrictions and protective covenants which control development standards, signs, etc A Garden Grove Auto Center located at the 22 freeway and Brookhurst Street Dealerships Ford, Toyota Dodge, Hyundai, Subaru and Mitsubishi B Santa Ana Auto Mall located at the 55 freeway and Edinger Avenue Dealerships BMW, Jeep/Eagle, Saturn, VW-Audi, Chrysler-Plymouth, Isuzu and Hyundai 2 Automobile Trade Areas Strip commercial develop- ments "Auto Row" facilities located on ma3or arterial streets Typical suburban configuration A Costa Mesa Harbor Boulevard between Baker Street and 19th Street B Huntington Beach Beach Boulevard between Heil Avenue and Yorktown Avenue 3 Freestanding Dealerships A Westminster Beach Boulevard, Westminster Boulevard and Garden Grove Boulevard B Garden Grove Harbor Boulevard between Westminster Avenue and Trask Avenue C Santa Ana 17th Street, Grand Boulevard and 1st Street A detailed review and analysis of the locations of existing franchises was made to determine the ability to locate or relocate auto dealerships within the City of Huntington Beach Additional information was gathered by discussing dealership 3 development and dealer network planning with ma3or automobile manufacturers Emphasis was also placed upon the legal requirements of California Vehicle Code Section 3062 , which defines a dealerships relevant market area Prior to establishing a new dealership or relocating an existing one further than one mile from its current location, the vehicle manufacturer is required to give notice to its existing dealers within a ten mile straight line radius An existing dealer may file a protest against the proposed location A hearing to determine the proposed dealerships impact on the relevant market area is then held before the California New Motor Vehicle Board Indepth interviews were conducted with all of the current dealers in Huntington Beach to determine their existing facility ownership, lease terms, size and adequacy The current and pro3ected sales volume of each dealership was determined and the dealer was asked to indicate his desire to move into an Auto Mall, if available, or renovate his/her facilities at their existing location The existing dealers in Huntington Beach are as follow 1 Huntington Beach Dodge 16555 Beach Blvd 2 Huntington Beach Chrysler/Plymouth 16661 Beach Blvd 3 Huntington Beach Jeep/Eagle 16751 Beach Blvd 4 Beach Lincoln/Mercury 16800 Beach Blvd 5 Beach Oldsmobile/Mazda 17331 Beach Blvd 6 DeLillo Chevrolet 18211 Beach Blvd 7 Terry York Ford 18255 Beach Blvd 8 South County Volkswagon/Isuzu 18711 Beach Blvd 9 Campbell Nissan 18835 Beach Blvd 4 10 Bill Maxey Toyota 18881 Beach Blvd 11 Huntington Beach Acura 19131 Beach Blvd 12 Performance Mitsubishi 19202 Beach Blvd 13 Roger Miller Honda 19232 Beach Blvd FINDINGS * Ten of the thirteen dealers desire to move to an auto mall if located properly and at a reasonable cost * The dealers would like to have a reader board sign on the freeway so that the Huntington Beach auto dealers could be identified * Several dealers have requested that the City provide some guidance to those dealers who wish to expand as to what their requirements will be before the dealer spends a lot of money on architect fees * Many dealers feel that the traffic volume and speed causes many customers to avoid shopping on Beach Boulevard, particularly in the summer * If an Auto Mall cannot be developed in Huntington Beach, then the existing dealers want to be tied together as a selling unit by identification, advertising and a common theme * Other franchises could be enticed to locate in the City if an Auto Mall is available at a reasonable price These additional franchises would most likely be Saturn, Hyundai, Infiniti, Volvo and Daihatsu 5 SUMMARY The condition of the national economy and the automobile industry are not conducive to near term addition of new dealerships in Orange County The trend is to consolidation of dealerships in auto malls Auto Malls have a tendancy to polarize the marketplace making it difficult for stand alone dealerships to survive Auto Mall development is to a great extent driven by city assistance to dealers and manufacturers The City of Huntington Beach has an opportunity to position its dealers to successfully achieve market penetration in central Orange County CONCLUSIONS * City of Huntington Beach should consider creation of an Auto Mall at or near the I-405 freeway If this is not feasible then every effort should be made to create an identity and promote the area as an "Auto Row" * It is concluded that a reader board sign on the I-405 freeway is needed and that the City of Huntington Beach and the auto dealers should take cooperative action to implement a sign program RECOMMENDATIONS * Proceed with site determination phase to include alternate locations, availability and price of property and city assistance * Develop identity for existing Huntington Beach auto dealers Joint effort marketing program by Huntington Beach Auto Dealers Association to create common identity and advertising * City of Huntington Beach work with Dealers Association to develop and implement a Freeway Signage program 6 DEALER ASSOCIATION REVIEW A presentation of the market research phase of this project was made to the Huntington Beach Auto Dealers Asssociation at their regularly scheduled meeting in June The association was in accord with the project work completed to date and they were anxious for the second phase to proceed as quickly as possible 7 CURRENT DEALERSHIP LOCATIONS HUNTINGTON BEACH 1 Huntington Beach Dodge 16555 Beach Blvd 2 Huntington Beach Chrysler/Plymouth 16661 Beach Blvd 3 Huntington Beach Jeep/Eagle 16751 Beach Blvd 4 Beach Lincoln/Mercury 16800 Beach Blvd 5 Beach Oldsmobile/Mazda 17331 Beach Blvd 6 DeLillo Chevrolet 18211 Beach Blvd 7 Terry York Ford 18255 Beach Blvd 8 South County Volkswagon/Isuzu 18711 Beach Blvd 9 Campbell Nissan 18835 Beach Blvd 10 Bill Maxey Toyota 18881 Beach Blvd 11 Huntington Beach Acura 19131 Beach Blvd 12 Performance Mitsubishi 19202 Beach Blvd 13 Roger Miller Honda 19232 Beach Blvd WESTMINSTER 16 Mike McCarthy Buick/GMC/Subaru 15550 Beach Blvd 17 Allen Kane Chevrolet 7600 Westminster Blvd 18 Elmore Toyota 15300 Beach Blvd 19 Bob Longpre Pontiac/Suzuki 13600 Beach Blvd 3 20 Penske Honda 13750 Beach Blvd 21 Lexus of Westminster 13590 Beach Blvd 22 Sunset Ford 5440 Garden Grove B1 GARDEN GROVE 24 Garden Grove Dodge/Hyundai/ Subaru 9666 Trask Ave 25 Superior Audi/VW 13631 Harbor Blvd 26 Garden Grove Mazda 13650 Harbor Blvd 27 Campbell Ford 9222 Trask Ave 28 Eddie Hopper Chevrolet 10511 Garden Grove Bl 29 County-Wide Chrysler-Plymouth/ Jeep/Eagle 10080 Garden Grove Bl 30 Orange County Volvo 10120 Garden Grove Bl 31 Garden Grove Mitsubishi 9898 Trask Ave 32 Quality Nissan 13731 Harbor Blvd 33 Toyota of Garden Grove 9444 Trask Ave SANTA ANA 37 Santa Ana Chrysler-Plymouth/ Hyundai/Isuzu 1405 Auto Mall Dr 38 Honda Santa Ana 2114 E First Street 39 Commonwealth VW/Audi 1450 Auto Mall Dr 40 Crevier BMW 1500 Auto Mall Dr 41 Santa Ana Nissan 2001 E 17th Street 9 42 Santa Ana Mazda (Closed) 1501 Auto Mall Dr 43 Jeep/Eagle of Santa Ana 1415 Auto Mall Dr 44 Reason Buick 909 N Grand Avenue 45 Guaranty Chevrolet 711 E 17th Street 46 Saturn of Santa Ana 1350 Auto Mall Dr COSTA MESA 49 Campbell Mazda 1425 W Baker Street 50 Atlas Chrysler-Plymouth 2929 Harbor Blvd 51 Costal Acura 2925 Harbor Blvd 52 Harbour Infiniti 2888 Harbor Blvd 53 South Coast Dodge 2888 Harbor Blvd 54 University Honda/GMC/Suzuki 2860 Harbor Blvd 55 Connell Chevrolet 2828 Harbor Blvd 56 Tuttle-Click Nissan 2845 Harbor Blvd 57 Harbor Mitsubishi 2833 Harbor Blvd 58 Johnson & Son Lincoln/Mercury 2626 Harbor Blvd 59 Nabors Cadillac 2600 Harbor Blvd 60 Nabors Buick 2600 Harbor Blvd 61 Orange Coast Jeep/Eagle 2524 Harbor Blvd 62 University Oldsmobile/Pontiac 2480 Harbor Blvd 63 Theodore Robins Ford/Isuzu 2060 Harbor Blvd 64 Toyota of Coata Mesa 1966 Harbor Blvd 65 Volvo of Costa Mesa 1960 Harbor Blvd ^ uti w Z WALNUT AVE 0 ORANGE "_' Y CHAPRNAN 2 AVE o CHAPRNAN Sz5 40 a o W rJ Oranqe Crusn InrerenangE 3 "p9 Maltu7crron JP m ® Q _ LA VETA AVE GARDEN GROVE , BLVD ° p 22 H 4q lu 29 30 Ye(LO � 3 MME Y LN �orAur oc S.I v > TRASK 9L 21 33 24 3, 25 26 AVE < N 45i *ru 4 ® $T u wEsrrarrsh 32 AVE LL 17TH ER AVE 1N STMINSTER 17 20LVD N `��o EST I T ; y o Q 4TH p g 44 cr W BOLSA m — AVE 1ST m ST > GpL�y Ai®WAY CITY 'a N sa TUSTIN 16 37 Q Q E = 3 CENTER > 0 46 3943 c Lu EDINGER a AVE m MC FADDEN A%4042 m u w u EDINGER HUNTINGTON 9 , = FOUNTAIN AVE > �q HARBOUR 2, 8 VALLEY o a 4 WARNER 3 m AVE WARNER LL AVE v the 02yCFp 00� ,ernut .f Q� BOLSA CHICA W DYER RD l > LL COLOGICAL �- STMAC ARTHUR BLVD �� u, TALBERT 6 e- F G y 7 �h y N �O Irvine y RESERVE a ELLIS AVE o W►snoon Q, 9 h� w G I orIELD AVE ®` p < �Q 1ITINGTON 51 5 3 4 9 z 56 54 DER �� LJ�• p'�Wy OiANG 13 AVE 57 55 PACIFIC C IWtY r'A/V Cf- ADAMS � AsoPNITHFA 59 w R �o®»s \`c Q?� � IRVINE DI GO = 60 DR 61 u Q 8 62 W �Ai_AVE Sp \d(CIZSIT� dR w 2 ® ARIA 63T F "gyp UPPER Ana. Q m ? HAARILTON `3\/� '� 64 ?? NEWPORT 19TH ST '65 OPE 1'O S, ECOLOGICAL OLOGELY �P ( 'ft NOV BER RESERVE I 1992 �o MAP INDICATING LOCATION COSTA MESA OF AUTO DEALERSHIPS o- 11 CITY OF HUNTINGTON BEACH AUTO MALL ANALYSIS- PHASE II AUGUST 28, 1991 SCOPE OF WORK -Analyze potential sites of land within or near the Huntington Center Commercial Redevelopment Project which might be a feasible auto mall location, taking into consideration -Existing dealer circumstances -Access, visability, signs, etc -Ideal size and dealer mix for an auto mall -Evaluate current Beach Boulevard location of Auto Dealers and opportunities for enhancement of this district -Develop recommendations based upon the foregoing SITE LOCATION STUDY An analysis of potential site locations for an Auto Mall was undertaken on a citywide basis The following areas were reviewed and considered 1 McDonnell Douglas property at Bolsa & Springdale 2 Huntington Center property 3 Beach Boulevard north of Warner Avenue 4 South side of Edinger Blvd west of Beach Blvd The McDonnell Douglas site was rejected because it did not provide freeway exposure or access The Huntington Center property met most criteria for a viable location, however the owners are not interested in redeveloping the property to automotive use at this time Most of the property on Beach 12 Boulevard is not located in a redevelopment area Parcels of a sufficient size and configuration for multiple auto dealership development were not available on the open market A potential 9 1 acre auto mall site was identified within the Huntington Center Redevelopment Pro]ect on the south side of Edinger Boulevard west of Beach Boulevard It appears that three high volume dealerships could be relocated to this site and create a meaningful retail draw DEALER RELOCATION ANALYSIS An in-depth study of every Huntington Beach auto dealer was completed to review their lease term, renewal options, monthly rental, fixed and/or Cost of Living Index rental increases, land ownership and pro3ected sales tax generation From this study a determination was made as to which dealerships were at risk of losing their facilities and the timing of required assistance Three dealers were determined to have the most immediate need for consideration of relocation assistance based upon lease expiration date and pro3ected rental increases MEETINGS WITH DEALERS A meeting with the Huntington Beach Auto Dealers Association was held on August 20, 1991 to discuss the Phase II site determination findings At that time the 9 1 acre site on Edinger Boulevard was identified as a potential site for dealership relocation The association members were asked to define both individual and collective interest in the location A subsequent meeting was held with four of the highest sales volume dealers to determine their level of interest in proceeding with an Auto Mall Three of these dealers indicated a desire to participate in the proposed pro3ect and agreed to forward letters to the City outlining their intent Approval from their manufacturers to relocate the dealerships 13 and financial feasibility are necessary conditions of dealer participation BEACH BOULEVARD EVALUATION In addition to assisting with the relocation of dealers to an auto mall site, the City should concurrently take steps to assist the Huntington Beach dealers at their existing Beach Boulevard locations Real and perceived concerns about the Beach Boulevard "Super Street" will become more pertinent as the pro3ect moves closer to becoming a reality Enhancement of the existing dealership district properties should include consideration of the following -Develop customer parking turnout bays at curb -Develop common architectural identity -Building facades -Color of buildings -Landscape palate -Sidewalk treatment -Develop offsite facilities for -Vehicle storage -Employee parking -Develop common marketing identity -Advertising and PR -Attention getting devices -Sign program 14 CONCLUSIONS * Automobile dealerships sales make a significant contribution to the city tax base Accordingly it is in the City's best interest to * Retain existing dealerships * Attract new dealerships * Promote City as auto trade area * Auto Mall of significant size not viable now * Suitable property not available * Economics prohibitive * Insufficient dealer committment now RECOMMENDATIONS * Evaluate and consider land purchase to implement Auto Mall on south side of Edinger Boulevard west of Beach Boulevard * Develop joint advertising program in conjunction with the Huntington Beach Auto Dealers Association * Reader board sign on I-405 Freeway * Create identity and promote city dealers * Provide assistance to selected auto dealers for * Relocation near I-405 and Beach Blvd * Expansion of existing facilities * Addition of new franchises APPENDIX Site Diagram Letter to Auto Dealers-August 1991 Letter from Auto Dealers- Auto Center-August 1991 Letter from Auto Dealers- Reader Board Sign-September 1991 Letter from South County VW/Isuzu- September 1991 Letter from MaceRich Co -Huntington Center-September 1991 A WF )DEN ®® ® �o I ® 9FF 'P®AeVA&A Ste IN NO A PAR m • iRoscoe= i ® CENTER DRIVE ®m®®®®® L--A® ®® i I HUNTINGTON CENTER cc a ® > Co c� Q W Co EDINGER AVE e Scale 1 " - 200 ' ®®®®®®®®®®®®®®®®®®®®®®®®®®®® ® ®®®®®®®®®®®® ® HUNTINGTON ENTER COMMERCIAL DISTRICT RED V LOPME T P OJ ' HUNTINGTON BEACH CALIFORNA AREA PLANNING DIVISION City of Huntington Beach ® 2000 MAIN STREET CALIFORNIA 92648 DEPARTMENT OF ECONOMIC DEVELOPMENT Office of the Director 536-5582 Economic Development 536-5542 August 16 1991 Rick Evans President Huntington Beach Auto Dealers Association Inc Huntington Jeep Eagle 16751 Beach Boulevard Huntington Beach Califoi nia 92647 Dear Mr Evans Results of our Auto Mall Feasability Analysis identified a potential 9 1 acre auto center site within the Huntington Center Redevelopment Pi oject Our consultant has indicated that three high—volume dealers could be located on this site (site diagram attached) We have started discussing a potential land purchase assisted by the Redevelopment Agency with members of your association subject to City Council review and approval We invite all members of the Huntington Beach Auto Dealers Association that may be interested in participating to make contact with Tom Andrusky at (714) 536-5224 All requests to participate will be evaluated in terms of best meeting the needs of the Auto Dealei s Association and the City of Huntington Beach The timeframe for this land purchase opportunity is rather tight because of RTC requirements and the timetable of Terranomics to sell or lease to a major tenant Currently our auto mall consultant is reviewing the economics of the proposed land transaction which will be available in the next few weeks It is a pleasure working with the Huntington Beach Automobile Dealers Association We look forward to implementing this plan and other programs that will enhance the economic base of the City of Huntington Beach Sincerely Barbara A Kaiser Deputy City Administrator BAK/TA jar ti HUNTINGTON BEACH August 30 1991 Mr Tom Androsky, Project Manager City of Huntington Beach 2000 Main Street Huntington Beach Calif 92648 Dear Mr Androsky, It was a pleasure meeting with you, Barbara Kaizer and the consultants of the proposed auto mall in Huntington Beach I am writing this letter in behalf of Roger Miller Honda, Terry York Ford and DeLillo Chevrolet We all have a great interest in relocating our facilities to the 9 1 acres indentified in the anaylsis This proposal is timely for both the city and the dealers The relocation would provide permanent sites for the various dealerships The dealers' various existing leases are coming up for renewal and the rental rates will be prohibitive The proposed relocation site with modern, efficient facilities adjacent to the Huntington Beach mall will have increased sales and service immediately This location will benefit the customers by the proximity to the mall and the freeway and be convenient for other people from neighboring area The specific areas that need to be addressed by the dealers and the city jointly are as follows 1 Secure Land The dealers would have a problem in securing and holding the land for the interim period till facilities were completed Estimated time from start of drawings till completion would be 2 years 2 Current leases need to be addressed depending on timing of completed dealerships 3 Factory approval Once the dealers know the land and agreement with city are in place the dealers can then notify their respective manufacturers for their approval and clearance of the marketplace 4 Costs The estimated cost of an efficient facility for each dealership on 3 acres will be 3 million In order to make this economically feasible the land cost for the dealership would need to be $8 00 per square foot 19232 Beech Boulevard o Huntington Beach California 92648 0 714 963 19>9 t HUNTINGTON BEACH August 30, 1991 Mr Tom Androsky Page 2 The individual dealer could arrange his own financing however, the use of non-tax free bonds with the city putting up the Letter of Credit would enable the dealers to accomplish this in a less costly manner and assure the financial viability of the dealership By working together, the city and the dealers can make this a very profitable long term joint effort Sincerel ger Miller, President RM so 19232 Beach Boulevard e Huntington Beach California 92648 0 714 963 1959 HUNTINGTON BEACH VAUTOMOBILE DEALERS \� ® ASSOCIATION, INC September 3 , 1991 Mr Tom Andrusky Department of Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Re Electronic Readerboard Sign Dear Mr Andrusky In review of the conclusions of the Auto Mall Feasibility Analysis, the Huntington Beach Automobile Dealers Association (HBADA) would like to immediately pursue the installation of an electronic reader- board, message center sign at the 405 Freeway, identifying the new car dealers of Huntington Beach as an Auto Center We respectfully request the participation of the City of Huntington Beach and propose the following 1 ) The City of Huntington Beach identify the site for the proposed sign along the 405 Freeway (Should be within the redevelopment district) 2 ) The City leases the site to the Huntington Beach Automobile Dealers Association for a term not less than 20 years at $1 00 per year 3 ) The HBADA will solicit and secure competitive bids for the proposed sign 4) The City of Huntington Beach purchases , leases or reimburses the association for the cost of the sign and installation 5) The HBADA will pay for the maintenance of the sign, including, power, programing, light bulbs, insurance, etc PO Box 2700 ® Huntington Beach California 92647 PAGE TWO We believe the electronic sign is our #1 priority as an Association of Auto Dealers and once installed will greatly enhance our ability to compete with the Auto Malls in the surrounding cities We appreciate the support the city has shown the Auto Dealers in recent years and we look forward to a greater volume of sales and increased sales tax revenues by working together on this project Sincerely, HUNTINGTON BEACH AUTOMOBILE DEALERS ASSOCIATION Rick Evans President N14 South County Volksiwagenlsuzu September 10 , 1991 ' CEIVEC RLEDEVE-Ohty FA,r Ms Barbara A Kaiser , Deputy City Administrator City of Huntington Beach 2000 Main Street Huntington Beach, CA 92648 Dear Ms Kaiser In response to comments made at the City Council meeting last night , this is to reconfirm the information that was furnished to the Consultant doing the Auto Mall Feasibility Analysis Our dealership is definitely interested in reviewing the possibility of being a part of the auto center site within the Huntington Center Redevelopment Project mentioned in the analysis Sincer Danny McKenna Owner cc City Council Michael T Uberuaga, City Administrator 18711 Beach Boulevard Huntington Beach California 92648 (714) 842-2000 (213) 592-1383 September 30, 1991 Ms Barbara A Kaiser Deputy City Administrator Economic Development City of Huntington Beach 2000 Main Street Huntington Beach, California 92648 Dear Barbara After receiving your September 12 , 1991 letter and copy of the Auto Mall Feasibility Analysis, I spoke with Tom Andrusky regarding some concerns we have about the proposed Auto Mall Electronic Reader Board I have since reread the Auto Mall Analysis and offer the following thoughts We recognize the increasing importance of sales tax revenue to California cities and acknowledge that automobile dealerships have been a great source of sales tax revenue and are therefore highly coveted by most cities Huntington Beach is fortunate to have a very large group of dealers congreqated on Beach Boulevard and their well-being and prosperity should be nurtured by the city Similarly, Huntington Beach Mall , which we own, is a ma3or contributor of sales tax and property tax revenue to Huntington Beach and is an asset worth assisting to achieve its growth potential Certainly these two non-competitive types of business can and should grow These uses are not necessarily highly compatible and ideally would be somewhat separated in physical presence if undeveloped land were available That not being the case in Huntington Beach and both businesses being in place in near proximity today, they should and must grow in place perhaps with some slight expansion of land made available through the Redevelopment Agency We think all of this can be accomplished without disadvantaging either the retail or the automobile sales but it must be handled with care and we do have some concerns #50(1 1 AKFWOnn C`FNTGt? Anei i •, �„ >� - - - Ms Barbara S Kaiser September 30, 1991 City of Huntington Beach Page 2 We are concerned that funds generated primarily through the incremental tax at Huntington Beach Mall will be disproportionately shared with Auto Dealers to encourage their relocation to the south side of Edinger We feel steps should be taken to give primary assistance to the future expansion of Huntington Beach Mall from where most of these funds are generated We are concerned that the proposed Electronic Reader Board that is virtually in the Mall 's back yard will negatively impact the visibility and identity of Huntington Beach Mall and interfere with our ongoing efforts with the City of Huntington Beach to secure better identification for the Mall from the I-405 Freeway As always we are prepared to work with the Agency and the City to insure the economic vitality of the entire area We simply want you to be aware of our concerns and give them the benefit of your review We would definitely like to consult with you about how our interests are effected before any decisions are reached Sincerely, THE MACERICH COMPANY nwjj---, tAj Claude S Keyzers, CSM Senior Vice President CSK/cr cc Tom Andrusky Mace Siegel Dana Anderson Art Coppola Mike Siegel