Joel Belding
Economic Development Director
Freeway Signs
Funding Participation Request
Ask
That the City Council authorize staff to
enter into an agreement with Toyota of
Corona to fund 50% of the proposed
freeway sign, with a not to exceed amount
of $396,015.
Toyota of Corona Freeway Sign
• Sign has reached the end of its
functional life
• Dealer has requested city
assistance with replacement
• City participation is a common
practice
396,015
Examples
from other SoCal Cities
Puente Hills
Cost: $708,919
City Funding: 80% ($506,135)
Balance: City loan (20% at 4%
interest) to dealers
PSA Time: 9 min/hour
Cost: $694,093
City Funding: 80% ($555,274)
Balance: City loan (20% at 4%
interest) to dealers
PSA Time: 9 min/hour
Ontario
Cost: $829,140
City Funding: 50% ($414,570)
PSA Time: 9 min/hour
Cost: $450,641
City Funding: 50% ($225,320)
PSA Time: 9 min/hour
Ontario
Cost: $497,312
City Funding: 50% ($248,656)
PSA Time: 9 min/hour
Cerritos
Cost: $892,891
City Funding: 50% ($446,445)
Balance: City loan (50% at 4%
interest) to dealers
PSA Time: 6 min/hour
Cathedral City
Cost: $478,765
City Funding: 75% ($359,073)
PSA Time: 9 min/hour
Fontana
Cost: $794,587
City Funding: 50% ($397,293)
PSA Time: 9 min/hour
Montclair
Cost: $700,000
City Funding: 50% ($350,000)
PSA Time: 6 min/hour
Duarte
Cost: $833,532
City Funding: 50% ($416,766)
PSA Time: 9 min/hour
Norco
Cost: $376,244
City Funding: 50% ($188,122)
PSA Time: 9 min/hour
Chino
Cost: $576,384
City Funding: 50% ($288,384)
PSA Time: 9 min/hour
Corona Auto Center Freeway Sign
• City provided $150,000 for
rehabilitation of sign
• Council approval 11/18/20
• City messaging on sign 20% of
time as public benefit (12 min
per hour)
Proposed Toyota Sign Cost Summary
• Cost: $792,031
• Requested
City Funding:
50% ($396,015)
• PSA Time: 9
min per hour
Old vs. New Sign Details
48’ high
23’11” wide
51’2” high
35’8” wide
347 sq.ft. 668 sq.ft.
Deal Points
•City pays 50% of sign cost
•$ 396,015
•City receives 9 minutes of every hour (15% of time)
•City name / logo / wordmark on sign
•All upkeep and electricity costs paid by Toyota of Corona •Warranty for 10 years
•Life of asset 10 years
Return on Investment
• New ownership dealership
projected to generate
$200,000 to $300,000
additional sales tax under new
ownership based on sales data
• Dealership estimates
10% increase in sales
from enhanced visibility
• City investment repaid
within 1.5 years of current
operations (current trend +
sign increase)
Prior ownership
5.05 4.67
4.28 10.85
9.49 Next Steps
Funding agreement
presented to City Council
(June/July ‘26)
Dealership submits
application for Variance to
Planning & Development
Dept (July – Dec ‘26)
Planning Commission acts
on Variance request
(December ‘26)
City Council affirms
Planning Commission
approval or overrides
denial on appeal
(January ‘27)
Sign permits; Sign
fabrication
(February – May ‘27)
City messaging begins; City
recoups investment through
sales tax collection
(June ‘27– June ‘28)
That the City Council authorize staff to
enter into an agreement with Toyota of
Corona to fund 50% of the proposed
freeway sign, with a not to exceed
amount of $396,015.
17 Recommendation
18 Questions?