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EXHIBIT 1 <br />SALES TAX REBATE AGREEMENT <br />This SALES TAX REBATE AGREEMENT ( "Agreement ") is made and entered into this <br />20'h day of October, 2015, by and between SSF, INC., doing business as VOLVO OF ORANGE <br />COUNTY, a California corporation ( "Volvo "), and the CITY OF SANTA ANA, a charter city and <br />municipal corporation organized and existing under the Constitution and laws of the State of <br />California ( "City "). <br />RECITALS <br />A. Sales tax rebate assistance is an economic development tool used to encourage <br />the development or expansion of new businesses that create additional sales tax for a City. The <br />purpose of this Agreement is to help offset some of the building costs and to increase sales by <br />increasing vehicle allocation from Volvo Cars North America as a result of Volvo of Orange <br />County meeting the new facility requirements and not as dividends to stock holders. <br />B. The City was recently approached by Volvo, one of the Santa Ana Auto Mall <br />dealerships, to consider a sales tax rebate assistance agreement to help fund their facility <br />upgrade. The Volvo Group Global, the corporate office of Volvo of Orange County, has <br />requested dealerships complete a remodel, both interior and exterior, of their facilities to <br />reposition themselves within the automotive market. Enhancements to the Auto Mall should be <br />supported by the City to keep it competitive and state of the art. <br />C. The remodel of the facility is estimated to cost $2.5 million dollars and will take <br />approximately six months to complete. With the agreement to remodel, Volvo will receive an <br />increase in the allocation of newly designed and highly desired new vehicles for their location. <br />It was indicated that if the facility upgrade did not occur, Volvo would be at a competitive <br />disadvantage as compared to other Volvo dealerships in the region. <br />D. Currently, Volvo is one of the top 50 sales tax generators for the City, while other <br />dealers in the Auto Mall are in the top 10. Since 2011, Volvo saw a nine percent decrease in <br />sales, while other dealers saw increases in their sales. Improvements to their facility will only <br />enhance their prosperity for the future. <br />E. The proposed agreement for consideration is to reimburse 50 percent of the new <br />sales tax generated above the base year (July 1, 2015 — June 30, 2016) up to $1 million dollars, <br />or 10 years, whichever comes first. For the remodel, the Volvo Group Global has committed to <br />pay $500,000, while Volvo of Orange County will pay $1 million dollars for their facility upgrade. <br />NOW THEREFORE, in consideration of the mutual and respective promises, and subject to the <br />terms and conditions hereinafter set forth, the parties agree as follows: <br />1. DEFINED TERMS. <br />The following terms when used in this Agreement shall have the meanings set forth <br />below: <br />"Base Year" shall mean July 1, 2015, through June 30, 2016 <br />�y_g' <br />