HomeMy WebLinkAbout3/17/2004 - STAFF REPORTS (5) DATE: MARCH 17, 2004
TO: COMMUNITY REDEVELOPMENT AGENCY
FROM: DIRECTOR OF COMMUNITY & ECONOMIC DEVELOPMENT
APPROVAL OF BUDGET RESOLUTION FOR THE PURPOSES OF FULFILLING AGREEMENT
WITH VIP MOTOR CARS, INC.,4095 EAST PALM CANYON DRIVE,AND FDH ENTERPRISES,
INC., TO PROVIDE FINANCIAL ASSISTANCE FOR THE RENOVATION AND EXPANSION OF
THE AUTO DEALERSHIP
RECOMMENDATION:
That the Community Redevelopment Agency of the City of Palm Springs ("Agency")
approve a Budget Resolution in the amount of $60,000 to comply with the terms of a
Disposition and Development Agreement with VIP Motor Cars, Ltd. and FDH Enterprises,
Inc., providing tax increment financing assistance for the rehabilitation and expansion of
the automobile dealership.
BACKGROUND:
In March 2000, the Agency approved a DDA with VIP Motor Cars to help facilitate a
significant expansion of their facility in Palm Springs and preserve the sales tax revenue
of one of the largest generators in the city. The terms of the DDA require the Agency to
reimburse VIP an amount of property tax increment equal to their increment of sales tax
over the base year (when the current owner purchased the property), up to a cumulative
total of $1,000,000. This year's projected amount was $160,000 based on historical
performance, but the dealer has performed substantially better than expected. Staff is
therefore requesting an additional appropriation of$60,000 from Agency Fund Balance in
the Debt Service Fund (Fund 851).
The additional reimbursement this year does not affect the overall total commitment of
$1,000,000, except that it allows the dealer to recover that more quickly and increases the
present value of the income stream to him, thereby making the total reimbursement more
valuable.
J HN S. kAYMO
Di ector o Comma y & Economic Development
APPROVE
Executive Director
ATTACHMENTS:
1. Budget Resolution REVIEWED BY DEPT. OF FINANCE
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY
OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET
FOR THE 2003-04 FISCAL YEAR.
WHEREAS Resolution 1216 approving the budget for the fiscal year 2003-04 was adopted on
June 4, 2003; and
WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain
amendments to said budget;
NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-
fund cash transfers as required in accordance with this Resolution, and that Resolution 1216,
adopting the budget for the 2003-04 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
851 8209 Debt Service $60,000
SECTION 2. SOURCE
Fund Activity Account Amount
Fund Balance $60,000
Adopted this day of 2004
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By
Assistant Secretary Chairman
REVIEWED AND APPROVED AS TO FORM
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