75A - SALE PROPERTY ON S.MAIN - Laserfiche WebLink

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DDA with Donald J. Crevier, as Trustee of the ~onald J. Crevier Trust, Crevier Motors, Inc., ~ California Corporation, and Crevier Leasing Company, Inc., a California Corporation - Crevier BMW Dealership July 6, 2004 Page 3 The subject actions will enable the expansion of the existing BMW Dealership at the Santa Ana Auto Mall by Donald J. Crevier, as Trustee of the Donald J. Crevier Trust (Developer) (Exhibit 1). Crevier BMW, one of four BMW dealerships in Orange County, is currently ranked first in "New Car Sales" in the nation and holds the title of number one in the nation for "Certified Pre-Owned Sales". The Santa Ana dealership with 267 existing employees expects to add 200 employees upon completion of the expansion, while creating 175 construction jobs during build-out. Sales volumes have nearly doubled from 1993 ($45.8 million) to 1998 ($88.1 million) and more than doubled again from 1998 to 2003 ($233.3 million). Projected total sales are expected to reach $560 million by 2008. The proposed Disposition and Development Agreement (DDA) calls for the ~eveloper to purchase approximately 4.23 acres or 184,597 square feet of ~~and from the Agency at $20 per square foot, or $3,691,940. This acreage includes a 161-square foot parcel located adjacent to the property to be conveyed. This 161-square foot parcel is addressed in an Option Agreement referenced in the DDA. The Agency secured this option as part of the acquisition of property from the Wyne-Snow Industrial Park Partnership. The 4.23 acres owned by the Agency will be conveyed in two phases to accommodate the Developer's construction schedule. The Agency is responsible for conveying a clear and buildable site, and will thus be providing the Developer with a credit against the purchase price for demolition of improvements on the property being sold. A reuse analysis found that the purchase price of $20 per square foot is consistent with fair market value for clear and buildable land; thus, the Agency is being fairly compensated for the land. The Developer received site plan approval from the Planning Commission at its May 10, 2004 meeting in accordance with Specific Development No. 60 (SD-60), the zoning document that governs the Auto Mall (Exhibit 2). On June 7, 2004, the City Council received and filed the subject staff report. The proposed facility consists of approximately 170,066 square feet of service, sales and office space and a five-level, six-tier, approximately 730-space parking structure. The parking structure will be used primarily for the storage of new car inventory. The project is ~roposed to be built in three successive phases, each taking ~pproxirnately one year to complete: construction of the Phase I parking structure is anticipated to commence in August 2004 following conveyance 75A-3