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CHINO CITY FUNDING REQUEST LETTER 040425

Chino City Council
June 3, 2025

Document
CHINO CITY FUNDING REQUEST LETTER 040425
Meeting
June 3, 2025
Body
Chino City Council
Original file
110 KB
Text extracted from the city's file for reading and search. Open the original on chino.legistar1.com. That file is the official record.

May 13, 2025

City of Chino
13220 Central Avenue
Chino, CA 91710

RE: Chino Ford Freeway Sign Upgrade – City Funding Request

This letter serves as an official request from the Chino Ford dealership for financial assistance in funding the upgrade of the Chino Ford digital freeway sign. The electronic display is no longer operational and is currently off and the Amber LED product has been discontinued, therefore we are unable to advertise to the 150,000 consumers driving by the Chino Auto Center daily on the CA-71 Freeway.

Chino Ford has secured a competitive bid for this necessary upgrade from Electra -Media, Inc., who has vetted through multiple technology options to provide us with the highest quality product at the best price. This upgrade will include a larger LED display as well as a new Chino Auto Center illuminated ID atop the sign, and City of Chino lettering on pole cover. It will also include refurbishment of all identification display lighting and a complete repaint of the structure which will make the sign appear new and return readership drastically back up to 98% resulting in increased sales and in turn, increased tax revenue to the City of Chino. Chino Ford is one of the top sales tax producers in the City of Chino with Gross Sales averaging $116,601,091 per year over the last three years and currently employs 125 people with the plan to increase to 150 employees.

Note: The average increase in car sales following the upgrade of a freeway sign that has been off to a large full-color LED display is typically 20% to 30% which is an increase in sales tax to the City of $233,203 per year.

In exchange for the city assistance and funding of 50% ($288,192) of the total purchase price of the upgrade ($576,384), the City of Chino will receive fifteen percent (15%) of each hour that the sign is in use for any public purpose such as PSA’s, emergency notices, etc., for the term of the City License Agreement. The remaining 85% is for Chino Ford to sell cars. Chino Ford is also covering ongoing operational costs.

Chino Ford
• Maintenance ---------- First five years parts and labor included. $986/month thereafter • Programming $325/mo. Upon activation, unlimited changes • Power $1,650/mo. Approximate costs
• Insurance $431/mo. Approximate costs

Operations for 10 years w/o CPI: $347,880 + initial 50% ($288,192) = $636,072 vs City at $288,192.

Recent City Funding (Last 24 Months)

-City of Cathedral City (75%) of $478,765 -City of Ontario (50%) of $518,590 -City of Duarte (60%) of $833,532 -City of Cerritos (50%) of $892,891 -City of Ontario (50%) of $1,279,781 -City of Ontario (50%) of $497,312 -City of Montclair (50%) of $750,000 -City of Norco (50%) of $376,244 -City of Cathedral City (50%) of $271,351 -City of Fontana (50%) of $794,587

We would like to have our item reviewed by the City Council at the first meeting in June .

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