HomeMy WebLinkAbout1995 CON CDC Ball Automotive - MOU LoanORIGINAL
MEMORANDUM OF UNDERSTANDING
between the
COMMUNITY DEVELOPMENT COMMISSION
of the City of National City
and
BALL AUTOMOTIVE GROUP
March 7, 1995
The Mile of Cars is an important factor in the economy and image of
National City.
Sales taxes from automobile and truck sales contribute
significantly to the General Fund revenues of the City.
Customers from the entire San Diego Metropolitan Area obtain
impressions of the City from their visit to the Mile of Cars.
The effects of aging and non -conforming uses on the Mile of Cars
detract from the City's image and does little to promote the sale
of vehicles.
The Santa Fe Motel, at the corner of 22nd Street and National City
Blvd. on the Mile of Cars, is in need of redevelopment because of
the use and condition of the property.
The Ball Automotive Group has an opportunity now to purchase the
Santa Fe Motel at a cost considerably greater than the market
value.
The Ball Automotive Group needs the assurance of the Community
Development Commission that if they purchase the Santa Fe Motel
property, some form of financial assistance will be available to
them to improve the subject property.
The Community Development Commission will consider providing a loan
of up to $200,000 to improve the property, as the CDC's finances
will permit.
The loan would be subject to the following conditions:
The Santa Fe Motel will be demolished within three months of
the purchase date; and, the CDC shall have no obligation, if
any, as to relocation of the occupants or for clearance of the
site.
The Loan Note would be secured by a Deed of Trust for the
subject parcel.
Development plans are to be approved by the normal City
procedures and by the CDC.
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MEMORANDUM OF UNDERSTANDING
CDC & BALL AUTOMOTIVE
March 7, 1995
The facility will be for the sale of new cars. The newly
developed parcel will complement the enhanced right-of-way
improvements to be installed on the Boulevard.
The loan proceeds of up to $200,000 may be spent only on the
subject parcel for new improvements, as approved.
Payback of the loan, if $200,000, will be as follows:
$25,000 per year with no interest for eight (8) years; or, if
in any year, sales from the Ball Automotive Group exceeds 6%
of the base year 1995-96 or $30,000 in sales tax revenue to
the City, whichever is greater, the principal amount for that
year shall be forgiven.
Any amount under the $200,000 shall be pro -rated accordingly.
BALL AUTOMOTIVE GROUP
tS�hn�Ball/Pre ident
Approved as to Form
v✓
George H.40Eiser,
City Attorney
ball.mou
III
COMMUNITY DEVELOPMENT COMMISSION
of the City of National City
George We rsairman
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