75A - PH 75 FT DIGITAL PYLON AUTO MALL

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"Required Operations" shall collectively refer to the following on and with respect to Auto Mall dealerships conducting automotive retail sales and service operations in the City: (i) Auto Mall shall have dealerships as its members which own or lease facilities in the City to allow the automotive retail sales and service operations to be conducted; and (ii) Auto Mall shall have dealerships as its members which operate automotive retail sales and service operations within the corporate boundaries of the City. "Sates Tax(es)" means that portion of taxes that is allocated, paid to, and actually received by City from the imposition of the Bradley -Burns Uniform Sales and Use Tax law (commencing with Section 7200 of the California Revenue and Taxation Code), or any successor law thereto, arising from all taxable sales transactions, occurring from Required Operations conducted by Auto Mall dealerships within the City during the Operating Period. "Sales Tax" shall not include sales tax revenues that are provided to a city based upon a special election and are limited to be used for a specified governmental function or functions. "Sales Tax Reports" shall include, for each Contract Year: (t) a statement identifying the amount of Sales Tax paid by Auto Mall dealerships from Required Operations within the City during the Contract Year; and, (ii) copies of all statements and reports filed with the State Board of Equalization. SALES TAX LOAN. 2.1 Loan Amount. On behalf of the Auto Mall, the City shall make payment to EMI in an amount not to exceed $1,032,948.00 ("Loan Amount") for the delivery and installation of a new 75 -foot tall double face digital illuminated pylon Sign at the Santa Ana Auto Mall, including the demolition and removal of the old sign, pursuant to the terms of the EMI purchase order attached hereto as Exhibit B. The City shall not be responsible for any other payments, expenses, or change orders beyond the Loan Amount. 2.1.1 Interest Rate. The Loan Amount shall include an Interest rate of 0.92°/x, which is the California Local Agency Investment Fund ("LAIF') rate of return as of June 30, 2017. 2.2 Repayment of Loan Amount to City. 2.2.1 Calculation of Auto Mall Consideration. The Auto Mall will be responsible for repaying the Loan Amount, including interest, to the City. Each Contract Year the Auto Mall will receive Loan Repayment credit for 50% of the new sales tax revenue generated to the City over the base year, which will be applied as a yearly repayment of the Loan Amount. The base year shall be calendar year 2016, in which the City received two -million, four -hundred and eighty-three thousand, and eight -hundred and eighty-nine dollars ($2,483,889.00) in sales tax revenue from the Auto Mall. At the end of 10 Contract Years of repayments, commencing with calendar year 2018 and continuing through calendar year 2027, the remaining Loan Amount not covered by the Loan Repayments, if any, will be due and payable by the Auto Mall to the City. 2.2.1.1 Subject to Paragraph 2.1.1.2 below, for Required Operations conducted by Auto Mall dealerships in the Operating Period, the Auto Mall shall receive Loan Repayment credit toward the Loan Amount based on the actual net amount of Sales Tax directly received by the City from the State Board of Equalization during that Contract Year. Subject to the terms of Section 2.1.2, the Loan Repayments for each Contract Year shall be 75A-23