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HomeMy WebLinkAbout112006 Agmt SA Auto Maill for Half Cost of Fwy ID SignREQUEST 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 To complement the mall expansion and enhancement efforts that are underway, it is necessary to again replace the outdated freeway sign with one that has a more modern, high tech appearance.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 Agreement with Santa Ana Auto Mall Dealers Association for Half the Cost of New freeway Identification Sign November 20, 2006 Page 2 opportunity for the mall, consistent with signs currently utilized by other malls and individual dealers. Significant construction cost savings will be realized with reuse of the existing sign base, and on- going cost savings of at least $1,000 per month are expected with use of the more energy efficient LED display. The total cost of the sign, including reinforcing the base and permit and plan check fees, is $736,623. It is being proposed that the Agency partner with the dealers in paying half of the cost, amounting to $368,312. The dealers will be responsible for all aspects of the sign contract. It is anticipated that once approvals are received, fabrication of the sign will commence and installation will be completed by May 2007. The sign was reviewed and unanimously approved by the Planning Commission at its November 13, 2006, meeting. The sign required Planning Commission Site Plan Review approval because it is located within a Specific Development zoning district (SD 60). ENVIRONMENTAL IMPACT In accordance with the California Environmental Quality Act, the proposed project is exempt from further review. Categorical Exemption Environmental Review No. 2006 -178 will be filed for this project. FISCAL IMPACT Funds are available in the South Main Tax Allocation Bond Series 2003A Capital Project account (account 552 - 936 -6631, Project 9257). APPROVED AS TO FUNDS AND ACCOUNTS: 11*�h" Nancy T. wards `� UL-F'rancisco Gutierrez Assistant irector Executive Director Community Development Agency Finance & Management Services Agen�_ SGH /SG /mlr H: \ACTIONS \2006 CRA \AgreeAuto Mall Dealers Assoc for freeway sign 11- 20- 06.doc • eo � � ` � a [1 \\ t o; �^ « k © /®C )) §ME � / i 2 -C / /3: 6 ) -- � � § -§ EXHIBIT I »\