REQUEST FOR CITY COUNCIL ACTION
SUBMITTED TO: Honorable Mayor and City Council Members
SUBMITTED BY: Oliver Chi, City Manager
PREPARED BY: Ursula Luna-Reynosa, Director of Community Development
Subject:
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Public Hearing to consider acceptance of the Five-Year Economic Development Subsidy Report for McKenna Motors Huntington Beach, Inc. Sales Tax Sharing Agreement
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Statement of Issue:
Government Code Section 53083 mandates certain requirements of local agencies, prior to approving economic development subsidies as well as during the term of such subsidies. One requirement is that not less than five years after the approval of an economic development subsidy, a report (the "Five-Year Subsidy Report") containing specific information shall be made available to the public via the City's website and at a City Council public hearing. In November 2016, the City approved a Sales Tax Sharing Agreement (the "Agreement") with McKenna Motors Huntington Beach, Inc. (McKenna). The Five-Year Subsidy Report is attached.
Financial Impact:
A fiscal impact was associated with the original action to approve the Agreement. However, there is no fiscal impact to receive and file this Five-Year Subsidy Report.
Recommended Action:
recommendation
A) Open the public hearing and receive written and oral testimony; and,
B) Receive and file the "Five-Year Economic Development Subsidy Report Pursuant to California Government Code Section 53083 for a Sales Tax Sharing Agreement by and Between the City of Huntington Beach and McKenna Motors Huntington Beach, Inc.," in compliance with Government Code Section 53083.
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Alternative Action(s):
Do not receive and file the Five-Year Subsidy Report.
Analysis:
The City has used sales tax sharing agreements as an economic incentive to help attract new businesses and retain existing businesses. Danny McKenna, owner of McKenna Volkswagen (VW), approached the City in 2016 expressing interest in constructing a new Subaru showr...
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