75A - PH 75 FT DIGITAL PYLON AUTO MALL

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SANTA AN, {A AUTO MALL DEALERS ASSOCIATi TON; LLC C!0 Premier Property Management ♦ 25108 Marguerite Parkway #A-2621 Mission Viejo, CA 92692 0: 949.837.2701 D: 714.348.0002 E: emilybenedick@gmail.com August 28, 2017 City Council City of Santa Ana 20 Civic Center Plaza Santa Ana, CA 92701 RE: Santa Ana Auto Mall Freeway Sign Upgrade for Increased Revenue Dear Honorable Mayor and City Council Members, The Santa Ana Dealers Association (SADA) is hereby requesting the City's assistance in a Sales Tax Participation Agreement to upgrade the electronic freeway sign that is used as the Auto Center's main advertising medium to reach the 250,000 cars/day that drive on the 55 freeway. It is near Impossible to convey to the public driving by on the freeway, that the Santa Ana Auto Mall encompasses 35+ acres of different Auto Dealerships without an Impactful electronic freeway sign that has up-to-date technology. The assistance needed from the City of Santa Ana for this project Is an upfront funding of $1,032,948 (100% of project cost) In order to capitalize on the 11 %-13% average sales increase for a sign upgrade of this size. This sales increase will result in a sales tax revenue increase of the same proportion to the City; this will allow the City to recoup their costs in 12 years or less. If the total amount of is not recouped by year 12, the SADA will pay the remaining balance to the City. Note: final terms of agreement to be finalized and approved by SADA and the City of Santa Ana. The recoup structure breakdown Is as follows: ➢ Total Remitted Sales Tax 2016 (approx.): $3,000,000 ➢ 12% Increase Estimate on 2018 (approx,): $360,000 ➢ 50% of that Increase Goes To City: $180,000 ➢ Recoup Time: approx. 6 years $1,080,000 SADA agrees to guarantee that any shortage not paid back to the City from Increased sales tax at the end of the term, shall be paid by the Dealers Association. With this mutual investment, the SADA will be able to make their sign a landmark and will be able to capture more of the Orange County market share from other Cities who also have digital Auto Center signs such as: Tustin, Irvine, Anaheim, Huntington Beach, Westminster and Garden Grove. In order to capture the above market share as soon as possible, please support our request and schedule the SADA project for a Planning Commission meeting to vote on approval by the last meeting In September 2017. Regards, Santa Ana Auto Mall Dealers Association EXHIBIT C 75A-34