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HomeMy WebLinkAboutCC Reso 2019-46 RESOLUTION NO. 2019-46 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CATHEDRAL CITY, CALIFORNIA, APPROVING A SALE TAX SHARING REPORT AND AUTHORIZING THE CITY MANAGER AND CITY ATTORNEY TO NEGOTIATE AND PREPARE A SECOND AMENDMENT TO THE SALES TAX SHARING AGREEMENT WITH PALM SPRINGS MOTORS, INC., PURSUANT TO UNDER TITLE 3, CHAPTER 3.46 OF THE CATHEDRAL CITY MUNICIPAL CODE WHEREAS, at the public hearing, duly noticed and held at the City Council meeting of Cathedral City ("City") on December 11, 2019 the City Council received testimony and other evidence including a tax sharing report prepare in accordance with section 3.46.040.B of the Cathedral City Municipal Code ("CCMC") concerning the proposed second amendment to the Sales Tax Sharing Agreement with Palm Springs Motors, Inc., located at 69-200 East Palm Canyon Drive ("Applicant"); and, WHEREAS, during that hearing the City Council took notice that pursuant to Title 3, Chapter 3.46 of the CCMC the City Council is authorized to enter into Sales Tax Sharing Agreements with Approved Businesses to provide an incentive program for the opening, operation and expansion of retail businesses within the City (the "Program"); and, WHEREAS, the City Council also took notice that it previously made findings at duly noticed public hearings on September 12, 2012, and on June 14, 2017 that, based on duly prepared tax sharing reports and other evidence in the record before it, there were valid reasons for designating Applicant as an Approved Business within the meaning of Title 3, Chapter 3.46 of the CCMC and making the determinations and decisions referenced in CCMC section 3.46.040, all of which are incorporated herein by reference as those fully set forth here at, which included approving the original tax sharing agreement and a first amendment to the tax sharing agreement; and, WHEREAS, at the public hearing on December 11, 2019, the City Council having considered any public testimony presented to it as well as the record before it desires to approve the latest Tax Sharing Report and make the determinations and decisions memorialized herein. NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE CITY COUNCIL FOR THE CITY OF CATHEDRAL CITY, AS FOLLOWS: SECTION 1. FINDINGS The City Council finds as follows: A. That the proposed second amendment of the Tax Sharing Agreement will meet the purposes set forth in Section 3.46.010 of the Municipal Code in that the renovation/expansion of the Mazda facility at Palm Springs Motors will enhance the quality of facilities, goods, and services that Palm Springs Motors makes available to the public and the City's residents; that the renovation will provide a desirable and attractive shopping experience for 1 the City's residents and visitors; and that the renovation will increase sales tax revenue to the City. B. That the Applicant meets all requirements of the Program and has been designated as an Approved Business in accordance with Sections 3.46.020 and 3.46.030 of the Municipal Code. C. That the Second Amendment to the Tax Sharing Report accurately depicts the anticipated benefits to the City and its residents of the proposed renovation/expansion of the Mazda facility at Palm Springs Motors by the Applicant, and the anticipated increase in sales tax receipts by the City derived from the project. D. That the staff report, Tax Sharing Report, testimony and other evidence presented to the Council during the public hearing on this matter support the findings and satisfy the requirements of Title 3, Chapter 3.46. E. That the staff report, Tax Sharing Report, and other evidence received support providing assistance to Palm Springs Motors, LLC, in an amount that does not exceed fifty percent (50%) of the Sales Tax Increment (as defined in Section 3.46.020 of the Municipal Code) over a period of ten (10) years from issuance of the Certificate of Occupancy for the Mazda facility, for a total amount of assistance not to exceed $1,400,000. F. That the Sales Tax Base and Sales Tax Increment (both as defined in Section 3.46.020 of the Municipal Code) is fairly determined and form the basis for the amount of assistance provided under the Program. G. That the Second Amendment to the Sales Tax Sharing Agreement, Operating Covenants (which will be recorded against the site) and Indemnity Agreement (included within the Sales Tax Sharing Agreement) shall be in accordance with and meet all of the requirement of Title 3, Chapter 3.46 of the CCMC. H. That the assistance provided under the Program by the City to Palm Springs Motors, Inc., is necessary to achieve the renovation of the Mazda facility and will increase the sales tax receipts to the City, thus providing benefit to the City and its residents. SECTION 2. APPROVAL OF APPLICANT AS AUTHORIZED BUSIESS Palm Springs Motors, LLC, has been approved as an Authorized Business in accordance with Sections 3.46.020 and 3.46.030 of the Municipal Code. SECTION 3. AUTHORIZING SALES TAX SHARING AGREEMENT The City Council hereby authorizes the City Manager and City Attorney to negotiate and prepare the appropriate Second Amendment to the Sales Tax Sharing Agreement, Indemnity Agreement and Second Amendment to the Operating Covenant, all consistent with the determinations and directions of the City Council memorialized in this Resolution and in accordance with all of the requirements of Title 3 of Chapter 3.46 of the CCMC, and also authorizes the City Manager to execute such documents on behalf of the City Council and City, with the City Attorney approving as to form and the City Clerk attesting to the documents. The City Council's authorization and approval is conditioned Palm Springs Motors, Inc., approving and executing the aforementioned documents within sixty (60) days of the date of this Resolution. SECTION 4. AUTHORIZATION TO SIGN RESOLUTION 2 The City Council authorizes the Mayor to sign this Resolution. SECTION 5. EFFECTIVE DATE This Resolution shall become effective immediately. SECTION 6. CERTIFICATION The City Clerk shall certify to the passage and adoption of this Resolution; shall enter the same in the book of original Resolutions of the City; and shall make a minute of passage and adoption thereof in the records of the proceedings of the City Council of the City, in the minutes of the meeting at which this Resolution is passed and adopted. PASSED, APPROVED AND ADOPTED at a regular meeting of the City Council for the city of Cathedral City held on this 11th day of December, 2019, by the following vote: Ayes: Councilmembers Lamb, Gutierrez and Carnevale; Mayor Pro Tem Gregory and Mayor Aguilar Noes: None Absent: None Abstain: None Jo' Aguilar, Mayor , ATTEST: Tracey R artinez, CMC Sip City Clerk APPROVED AS • F• 'NI: ems Eric S. Vail, City Attorney 3