RESOLUTION NO. __________
RESOLUTION OF THE CITY C OUNCIL OF THE CITY OF
CHULA VISTA ACCEPTING AND FILING AN ECONOMIC
DEVELOPMENT SUBSIDY REPORT PURSUANT TO
GOVERNMENT CODE SECTION 53083 FOR SUNROAD BCV,
HOLDINGS, INC. TO CONSTRUCT A BMW AUTO
DEALERSHIP
WHEREAS, on December 15, 2015 the City Council of the City of Chula Vista approved an Owner Participation Agreement (“Agreement”) with Sunroad BCV Holding, Inc. (the “Participant”); and
WHEREAS, the Agreement establishes an economic developme nt subsidy authorized by Government Code Section 52200, et seq. and the Charter of the City of Chula Vista; and
WHEREAS, on May 17, 2018 the City Manager of the City of Chula Vista (“City Manager”) agreed to extend the outside opening date of the Agreement to December 31, 2019; and
WHEREAS, on December 7, 2021 the City Manager agreed to extend the outside opening date of the Agreement to July 1, 2023; and
WHEREAS, the Agreement provides for the Participant’s operation of a BMW Automobile Dealership (“Ap proved Dealership”) on approximately 3.85 acres of vacant real property currently owned by Participant; and
WHEREAS, the property is located along the southerly side of Main Street, east of Brandywine Avenue and west of Maxwell Road in the City of Chula Vista (the “Site”), and
WHEREAS, the Agreement provides for the operation of the Approved Dealership for a period of no fewer than twenty (20) years; and
WHEREAS, in exchange for the Participant’s operation of the Approved Dealership during each year in accordance with the various requirements of the Agreement, the Agreement requires the City to reimburse the Participant for fifty percent (50%) of the sales and use tax (excluding Measure A and Measure P revenues) generated by the operation of the Approved Dealership at the Site for a period of twenty (20) years, net of any third party costs incurred by the City to calculate the sales and use tax generated by the Approved Dealership and up to a maximum cumulative payment to the Participant of three million, three-hundred thousand dollars ($3,300,000); and
WHEREAS, pursuant to Government Code Section 53083(d), the City is required to prepare a report within the term of the economic development subsidy containing various information regarding the Agreement an d the economic development subsidy set forth in the Agreement; and
WHEREAS, the City (i) made the information required by Government Code Section 53083 available to the public in written form and on the City’s website , and (ii) held a noticed public hearing regarding the report; and
BE IT FURTHER RESOLVED by the City Council of the City of Chula Vista, that it accepts and files the economic development subsidy report in substantially the form presented in Exhibit A attached hereto and incorporated herein and on file in the City Clerk’s Office pursuant to Government Code Section 53083(d) for Sunroad BCV Holdings, Inc. to construct a BMW Auto Dealership.
Presented by Approved as to form by
Eric C. Crockett Glen R. Googins
Deputy City Manager City Attorney