R2006-65 AUTHORIZING AGREEMENT DECATUR AUTO DEALERS ASSOCIATION

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LEGAL DEPARTMENT MEMORANDUM NO. 2006-08 Apri127, 2006 TO: Honorable Mayor Osborne and City Council � FROM: Steve Garm City Manager �`(� i:f� Wendy L. hland, Corporation Counsel John T. Robmson, Assistant Corporation Counsel SUBJECT: Resolution Regarding Auto Dealers Agreement SUMMARY RECOMMENDATION: The City has been asked to enter into an agreement with the Decatur Auto Dealers Association that provides for their tent sales to be moved to the City. BACKGROUND: We have reached an agreement in principle to bring the Automobile Dealers Association's semi-annual tent sale back to the City of Decatur, keeping with our stated budget goal of bringing in new revenue streams to the City. The Association has agreed to host its show twice each year at Progress City, events estimated to generate approximately $70,000 annually in new sales tax revenue. As an incentive for locating the tent sale at Progress City, in the first year of the agreement the City would rebate $15,000 of the new tax revenue to the Association for each of its two shows, and would then rebate 30% (30 percent) of the tax revenue each of the following years. It should be noted that we're not losing anything with the proposed rebates as all , of the funds represent net new revenue that is currently being spent outside of the city. If this agreement is approved, the first show is expected to be held on the site June 8 through June 12, 2006. In addition to bringing in new revenue, this agreement also helps to accomplish the all-important task of finding additional uses for the Progress City site and provides a direct return to the City for our front-end on-site infrastructure investment. POTENTIAL OBJECTIONS: None. INPUT FROM OTHER SOURCES: Decatur Automobile Dealers Association, and the Chief Operating Officer for Progress City, USA. STAFF REFERENCE: Wendy L. Morthland, Corporation Counsel, or John T. Robinson, Assistant Corporation, 424-2807. BUDGET/TIME IMPLICATIONS: This agreement is expected to generate annual gross new sales tax revenue of approximately $70,000 for the City.