MEETING MINUTES
Special Study Session

January 5, 2000
7:00 p.m.
City Council Chambers

Mayor Rocha called the meeting to order at 7:00 P.M. , and City Clerk Martin called the roll.

1. DISCUSSION OF PROPOSED BLIGHT ABATEMENT AND TAX REBATE AGREEMENT WITH THOMAS NOKES dba ANTIOCH AUTO CENTER

Council Member Davis asked to be excused as he felt his employment created a conflict of interest, and retired to the audience.

City Manager Ramsey introduced the item, explaining the presentation would not end in a vote, but could be agendized for the meeting of January 11, 2000 at Council's direction. He then presented the staff report dated December 27, 1999 and gave an overview of the progress of this item, stating discussion had begun a few years previous, before legislation was in place allowing agencies to work together, as it is now. He stated Mr. Nokes had been exploring various avenues to expand his business over the past year. He further explained the site being considered was blighted and the City had been actively seeking a means to correct the situation.

Financial Services Director Tasker went over sales tax revenue currently received by the City from this dealership. He stated the potential sales tax benefit loss to the City would be approximately $850,000 per year should Mr. Nokes relocate outside the City of Antioch. The dealership's current tax income to the City is closer to $514,173 per year. In response to Council Member Soliz, Mr. Tasker stated 90% of the funding for the Police Department and some administrative areas are funded with sales tax, which are a "point of sale" tax. He further stated this would not have an impact on the vehicle licensing fees received by the City, as those fees are based on the buyer's residence. Therefore, we only receive the fee from those who are City of Antioch residents.

Public Works Director Brandt stated he estimates the undergrounding would cost approximately $720,000 and was in the process of finding a private contractor to do the design, adding the City was also applying for grants to help defray the cost. He stated staff was also looking into Mr. Nokes' request to change the name of Somersville Road to Auto Center Drive.

City Manager Ramsey stated keeping the name the same from one side of the State Route 4 to the other would be more business friendly. However, he emphasized whatever obligations were attached to Somersville Road would roll over to the new road name, and would not change anything in the General Plan.

Community Development Director Ward stated the City would provide and expedite the rezoning of the area to Commercial.

In response to Council Member Freitas' question regarding the status of the most easterly parcel, Mr. Ramsey clarified the four parcels in question did not include the parcel with the single family home, to the farthest east. He added the use of ADA monies would involve some financial restrictions.

City Attorney Galstan stated the City would probably remove the Agency from the picture and the City would pick up any costs. Mr. Galstan reiterated Mr. Nokes' current businesses brings approximately $540,000 per year into the City coffers. He then went over the agreement as it currently stood, expounding on the high points, such as the agreement regarding the "readerboard," the minimum time the agreement would be in force, etc. He stated one issue not yet resolved was the undergrounding. He added the agreement included two new businesses to be brought into town, however, if Mr. Nokes brought in other businesses, they had discussed the possibility Mr. Nokes could receive sales tax reimbursement credits.

Thomas Nokes, the applicant, stated his plan was to build two very attractive businesses in a modern design guaranteeing sales tax revenue to the City from a first class business. He stated the business would also create high-paying jobs for local residents. He anticipated a 30% increase in sales tax revenue for the City, adding this project proposal represented a $7.5M investment for his company. He stated the readerboards would attract economic businesses with the possibility of increasing sales by 20%. He explained he would bear the $600,000 cost of the readerboard and the $1,500 per month for maintenance.

Council Member Sudario requested the agreement specify the readerboard display only items of economic and /or community interest, and not be used for political items. Responding to Ms. Sudario's question, City Attorney Galstan stated ADA was not to be used for this venture, and in fact, the City would not be advancing any money to Mr. Nokes. Seeing no provision for protection of the City in the case of bankruptcy during the first 10 years, Ms. Sudario requested such a provision be added to the agreement, and Mr. Galstan agreed.

Council Member Freitas requested a conceptual design and/or model of the readerboard be provided to Council at the next meeting for approval, including pictures of other such readerboards and the cost projections. He further stated guidelines should be established defining what could be displayed on the sign, adding the agreement could be amended to include the written guidelines regarding approved material for display, and asked the revisions also be available for the next meeting. He stated he was conceptually opposed to changing Somersville Road to Auto Center Drive, noting nothing would keep Mr. Nokes from moving this location to another location in Antioch. He felt the guidelines should denote a preference for local businesses on the readerboard.

Council Member Soliz stated his support of the readerboard, agreeing guidelines were needed. He stated this project represented a significant amount of money for the City and wanted to move quickly, adding while this street name change was not a problem for him, such changes needed to be evaluated on a case by case basis.

Jean Kuberra stated she was confused about the reimbursement as represented on the chart. She also questioned the sales tax base being used.

Jean Kuberra voiced her objection to the meeting not being taped for delayed playback, stating it appeared there was something to hide.

Allen Payton felt the City didn't have a choice, stating the person with the private business is the one with a choice. He added another option would be revenue sharing.

Mayor Rocha adjourned the meeting at 8:23 P.M. to the next regular meeting of January 11, 2000.

Respectfully Submitted:

L. JOLENE MARTIN, City Clerk