112006 Agmt SA Auto Maill for Half Cost of Fwy ID Sign

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REQUEST FOR AGENCY ACTION AGENCY BOARD MEETING DATE: NOVEMBER 20, 2006 TITLE: AGREEMENT WITH SANTA ANA AUTO MALL DEALERS ASSOCIATION FOR HALF THE COST OF NEW FREEWAY IDENTIFICATION SIGN EXECUT E DIRECTOR RECOMMENDED ACTION AGENCY SECRETARY USE ONLY: APPROVED ® As Recommended ❑ As Amended G1�2S7LL1) ❑ Ordinance on 1s` Reading ❑ Ordinance on 2 n Reading ❑ Implementing Resolution ❑ Set Public Hearing For CONTINUED TO FILE NUMBER Direct the Agency General Counsel to prepare and authorize the Executive Director to execute a Cost Sharing Agreement with the Santa Ana Auto Mall Dealers Association for half the cost of a new freeway identification sign in an amount not to exceed $368,312. DISCUSSION The Santa Ana Auto Mall was originally established by the Community Redevelopment Agency in 1984 to assist with the retention and expansion of local auto dealerships. The mall currently has 12 manufacturers within eight new car dealerships, generating approximately $3.9 million in annual sales tax revenue for the City. As part of the original project, the Agency was responsible for the freeway identification sign, which was installed in late 1985 and then turned over to the Dealers Association. Due to technological advances, the sign and /or electronic reader board have been replaced once by the Agency and once by the Dealers Association. To complement the mall expansion and enhancement efforts that are underway, it is necessary to again replace the outdated freeway sign with one that has a more modern, high tech appearance. The Dealers Association has taken on the task of securing a sign contractor and has selected an innovative and cost effective solution for upgrading of the sign. The new sign will have a new LED display, including enhanced graphics, video and text, as well as a resurfaced base (see Exhibit 1). The LED display provides a more competitive advertising 6 -7