HomeMy WebLinkAbout04/13/1993 Item 3 - Water Allocation Exemption 7�
This item was continued from the meeting of 4/6/93. Please refer to your agenda report
from that meeting. Copies of the report are also available in the City Clerk's Office and
in the Council Office.
- M E AGENDA
DA REM#
MEMORANDUM
April 8, 1993
TO: City Council
FROM: John Dunn, City Administrative Of ' er
SUBJECT: April 13th Council Meeting: Item 3
Mr. John Frangie asked that the attached information be provided to Council relative to
Item 3, which relates to Mr. Frangie's request for certain exemptions and fee waivers.
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84. 06. 93 01 : 44 PM P 0 2
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INVITATION A REQUEST FOR PROPOAAL
March 31, 1993
Mr. John Frangie, President
San Luis Nissan
1484 Auto Park Way
San Luis Obispo, CA 93401
Dear Mr. Frangle:
Would you open a car dealership In Lompoc If your debt service was around $10,000 per
month?
There Is a unique opportunity for one or two auto dealerships that are in a position to move
quickly,develop a new facility,and open for buslness In approximately 12 months. TRe City
of Lompoc is considering an application to the U.S.Economic Development Administration
to assist the City In providing off-site Improvements such-as curbs,gutters,sidewalks,street
lights, utility extensions, traffic signals, electrical transformers, fees, etc. to cut the public
improvement cost of the development on two sites. The Clinton Administration Is proposing
$45 million for public improvement projects that can create jobs within 12 months. The City
has selected the best remaining commercial site In town. T Zhe site is a 5-acre corner
property across the street (Highway 1) from Lompoes two largest auto dealers (Sunset
Chevrolet and Lompoc Honda). It has the potential to be developed as two auto
dealerships, each with 21h acres. We estimate an employment impact of 35 new jobs per
dealership. Since we have the commitment of one existing Lompoc dealer on another site,
we are looking for two more. We have the cooperation of both property owners. Three
dealerships equals a total of 105 new jobs, or one job per $3,428.57 of EDA grant. We
believe this would make Lompoc's application very competitive.
I have enclosed some demographic information regarding the Lompoc market. The
Lompoc area has a population of 60,000. There is an additional 20,000 in the Buellton,
Solvang, Santa Ynez area. The 1989 income information for these areas has been
highlighted for your convenience. The enclosed map shows these areas relative to Santa
Maria. The proposed location has been highlighted and circled. Existing dealerships in
Lompoc include Chevrolet/GM, Ford,.Honda, Saab and Toyota.
The potential growth of the Lompoc area lies primarily with the potential for growth at
Vandenberg Air Force Base. This base is under consideration by Motorola for its iridium
project. It is actively being promoted by the State of California as the U.S. Private Space
04. 06. 93 01 : 44- .PM P 0 3
Page 2
Invitation & Request for Proposal
March 31, 1993
Launch Center. It is also under consideration to be the recipient of several Air Force
programs located on bases scheduled for closure. Non-base related growth Is also
anticipated as part of the City's marketing of Its 120-acre specific plan Industrial park.
Lompoc's Economic Development ice also functions as the Central Coast Development
Corporation. This corporation is certified by the U.S. Small Business Administration to
provide second trust deed fixed asset financing at very competitive rates (currently.7.16%
on a20-year term fixed rate loan). A loan flyer and funding memo are enclosed.
Please contact Tom Martin of Lompoc City's Economic Development Office If you are
interested. Time is of the essence.
Sincerely,
d• 'J
Gene L. Wahlers
City Administrator
enclosures