5/2/2022
HUNTINGTON
Five-Year Economic
INCORPORATED
Development Subsidy Report
Pursuant to Government
Code Section 53083
Sales Tax Sharing Agreement with
Surf City Auto Group II, Inc.
May 3, 2022
Background
• Surf City Auto Group II, Inc. approached City in 2017 CHRYSLER for assistance with the expansion of their Chrysler,
Jeep, Dodge, Ram dealership and the construction of
a new stand-alone Jeep Dealership
• To help facilitate the expansion that would in turn
increase car sales, the City provided an economic DODG
development subsidy in the form a sales tax sharing
agreement
• Subsidy provides a 50/50 split of sales tax revenue
received by the City in excess of $1,681,797 (base
amount), increases 1% each subsequent year RAM
SUPPLEMENTAL
COMMUNICATION
Meeting Date:_ 5/3/2022
1 Agenda (sam No: 24(22-373)
5/2/2022
AB 562 - Section 53083
• Enacted January 1, 2014 16701
• Requires local agency to provide specified Jeep.
information to the public and review, hold
hearings, and report at specific intervals
• Economic Development Subsidy - any
expenditure of public funds or loss of
revenue - ($100,000 or more) for the
purpose of stimulating economic
development
5 Year Report - Key Points
Fiscal Year Sales Tax Revenue Sales Tax Rebate City's Revenue FY 2018-2019 $1,645,216 $0 $1,645,216
FY 2019-2020 $2,392,231 $338,315 $2,053,916
FY 2020-2021 $2,625,515 $446,379 $2,179,136
FY 2021-2022 $558,379 TBD $558,379
TOTAL $7,221,340 $784,694 $6,436,646
• Term through 2038 (or can be terminated after 10 years by Surf City Auto) • $7,221,340 in Sales Tax Revenue
• City has retained $6,436,646
• Surf City Auto provided with $784,694
• 25 full-time jobs, 75 temp. construction jobs
2 5/2/2022
New Stand-Alone Jeep Dealership
CHRYSLER
Jeep
DODGE
Jeep
WRAM
Questions?