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SANTA AICA AUTO MALL. DEALERS ASSOCIATION LLC <br />CIO Premier Property Management ♦ 25108 Marguerite Parkway #A-262 ♦ Mission Viejo, CA 92692 <br />0: 949.837.2701 D: 714.348.0002 E: emilybenedick@gmail.com <br />August 28, 2017 <br />City Council <br />City of Santa Ana <br />20 Civic Center Plaza <br />Santa Ana, CA 92701 <br />RE: Santa Ana Auto Mall Freeway Sign Upgrade for Increased Revenue <br />Dear Honorable Mayor and City Council Members, <br />The Santa Ana Dealers Association (SADA) is hereby requesting the City's assistance in a Sales Tax Participation <br />Agreement to upgrade the electronic freeway sign that is used as the Auto Center's main advertising medium to <br />reach the 250,000 cars/day that drive on the 55 freeway. It is near impossible to convey to the public driving by on <br />the freeway, that the Santa Ana Auto Mall encompasses 35+ acres of different Auto Dealerships without an impactful <br />electronic freeway sign that has up-to-date technology. <br />The assistance needed from the City of Santa Ana for this project Is an upfront funding of $1,032,948 (100% of <br />project cost) in order to capitalize on the 11% -13% average sales increase for a sign upgrade of this size. This sales <br />Increase will result in a sales tax revenue increase of the same proportion to the City; this will allow the City to recoup <br />thelr costs in 12 years or less. If the total amount of is not recouped by year 12, the SADA will pay the remaining <br />balance to the City. Note: final terms of agreement to be finalized and approved by SADA and the City of Santa Ana. <br />The recoup structure breakdown is as follows: <br />➢ Total Remitted Sales Tax 2016 (approx.): <br />$3,000,000 <br />➢ 12% Increase Estimate on 2018 (approx,): <br />$360,000 <br />➢ 50% of that Increase Goes To City: <br />$180,000 <br />➢ Recoup Time: approx. 6 years <br />$1,080,000 <br />SADA agrees to guarantee that any shortage not paid back to the City from increased sales tax at the end of the <br />term, shall be paid by the Dealers Association. <br />With this mutual Investment, the SADA will be able to make their sign a landmark and 411 be able to capture more of <br />the Orange County market share from other Cities who also have digital Auto Center signs such as: Tustin, Irvine, <br />Anaheim, Huntington Beach, Westminster and Garden Grove. <br />In order to capture the above market share as soon as possible, please support our request and schedule the SADA <br />project for a Planning Commission meeting to vote on approval by the last meeting in September 2017, <br />Regards, <br />Santa Ana Auto Mall Dealers Association <br />EXHIBIT p <br />75A-33 <br />