HomeMy WebLinkAboutPOWERPOINT - TUSTIN TOYOTACity of Tustin
and
Oremore of Tustin
"Tustin Toyota
"
• Currently Operates at 44 Auto Center Drive
• Recently Purchased 36 Auto Center Drive to:
• Compete in Marketplace
• Meet Toyota Motor Credit Corporation
Factory Requirements
• Retain a Presence in Tustin
• Building and Site Will Require Major Renovations
• Requests City Assistance for a Portion of Certain
Constructions Costs Up To A Maximum of
$2)800)000
Summary of Terms of Agreement
Tustin Toyota:
• Fund, Design and Construct all Improvements
• Requires Recordation of a Covenant That:
• Will Operate Dealership for a Minimum 10
Year Term
• Site Will Be A Point of Sale For All
Transactions
• Will provide Tustin Toyota Annual Assistant
Payments Based on Excess Sales Tax
Generated:
• Over a Minimum Threshold Level Reached in Sales and
Use Taxes Each Year Adjusted Upward by 2.5% Per Year
• Years 1-3, 80% of Excess Sales Tax
• Years 4-10, 50% of Excess Sales Tax
• Reimbursement Shall Not Exceed $2,800,000 For Actual
Improvements Incurred of $5.5 Million
Benefits of Agreement
• Revitalizes A Commercial Property
• Promotes Maintenance, Marketing and Development
of Tustin Auto Center
• Retains a Business and Creates New Jobs
• Promotes Expansion of City's Tax Base
• Assistance Provided only Reimburses For Project
Costs That Make Expansion in Auto Center Feasible
• Assistance Provided is only Incremental Sales Tax
Generated