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HomeMy WebLinkAboutRDA Reso 2004-1895 RDA RESOLUTION NO. 2004-1895 RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF CHULA VISTA APPROPRIATING $23,465 FROM THE AVAILABLE BALANCE OF THE MERGED PROJECT AREA FOR THE PURPOSE OF A INCENTIVE PAYMENT DUE TO PEOPLE'S CHEVROLET PURSUANT TO A 1993 DISPOSITION AND DEVELOPMENT AGREEMENT WHEREAS, in 1993, the City of Chula Vista Redevelopment Agency (Agency) adopted a Disposition and Development Agreement (DDA) for the Chula Vista Auto Park Phase 1, including a provision for an "incentive payment" to auto dealers for each of the first six years after the Auto Park was open for business; and WHEREAS, the DDA also provided for an annual "post-incentive payment" for the next nine years after the first six; and WHEREAS, it has been seven years since the Auto Park opened; and WHEREAS, the DDA requires the Agency to pay the post-incentive payment to auto dealers if certain sale tax receipt thresholds are exceeded; and WHEREAS, the calculation for the incentive, recognizing that three dealerships were operating during the period, is based on a formula found in the DDA that is roughly equal to 37.5 percent multiplied by the difference between the dealership's sales tax receipts and one-quarter (1;4) of a base sales tax figure which is specified in the DDA and adjusted upwards annually; and WHEREAS, although the method of calculation of the incentive and post-incentive payments are based upon sales tax received by the City of Chula Vista (City), the method does not constitute a commitment by the City or Agency of sales tax proceeds; and WHEREAS, People's Chevrolet exceeded the sales tax receipt threshold in Fiscal Year 2003. NOW, THEREFORE, BE IT RESOLVED the Redevelopment Agency of the City of Chula Vista does hereby appropriate $23,465 from the available balance of the Merged Project Area for the purpose of an incentive payment due to People's Chevrolet. Presented by Approved as to form by . Madigan ity Development Director C^'- ~&(~- Ann Moore Agency Counsel RDA Resolution No. 2004-1895 Page 2 PASSED, APPROVED, and ADOPTED by the Redevelopment Agency of the City of Chula Vista, California, this 21 st day of September 2004, by the following vote: AYES: Agency Members: Davis, McCann, Rindone, Salas, and Padilla NA YES: Agency Members: None ABSENT: Agency Members: None ~~ Stephen C. Padilla, Chairman ATTEST: STATE F CALIFORNIA ) COUNTY OF SAN DIEGO ) CITY OF CHULA VISTA ) I, Laurie A. Madigan, Secretary of the Chula Vista Redevelopment Agency, do hereby certify that the foregoing Redevelopment Agency Resolution No. 2004-1895 was duly passed, approved, and adopted by the Redevelopment Agency at a regular meeting held on the 21 st day of September 2004. Executed this 21 st day of September 2004.