65C - VIP INCENTIVES PROG - Laserfiche WebLink

Home Browse Search

Santa Ana Resident VIP Program November 20, 2018 Page 3 Exclusion of leases and used vehicles Staff is recommending that leased vehicles are not included in the incentive program as sales tax is not paid up front rather over the time of the lease. By allowing leased vehicles, the initial economic impact of the incentive to the City would be reduced as more residents would be inclined to pursue a lease instead of a new purchase. As the City of Santa Ana has numerous used car dealerships (outside of the participating dealers list), Staff is also recommending that used cars are not included in the incentive program. This would create significant processing, auditing and an administrative burden to manage such a program. Additionally, defining which used vehicle dealerships are accepted into such a program may create inequities for dealers and buyers. Marketing With marketing of the program, city staff is expecting that the number of new cars sold to local residents and entitled to the incentive could reach up to 2,000 vehicles. With a rebate amount of $500 per resident, the anticipated first year budget for the program would be $1 million dollars. The marketing and administration of the Program is expected to be up to $50,000. STRATEGIC PLAN ALIGNMENT Approval of this item supports the City's efforts to meet Goal #3 Economic Development, Objective #3, (Promote a solutions -based customer focus in all efforts to facilitate development and investment in the community), Strategy C (Explore opportunities to encourage a business friendly environment within the city through the reduction of non-essential regulatory requirements, improved coordination between agencies for development review and addition of monetary incentives). FISCAL IMPACT There is no fiscal impact associated with this action Steven A. Mendoza Executive Director Community Development Agency 65C-3