Item 8.1 - Alternate Uses for South Poway Business Park Auto Mall ~qENDA REPORT SUMMARY
TO: Honorable Mayor and Members of the City Council
FROM: James L. Bowersox, City Mana~jm.m~
INITL&II~D BY: John D. Fitch, Assistant City Manage~'~)lL
DATE: April 25, 1995
SUBJECT: Alternate Uses for the South Poway Business Park - Auto Mall
ABSII~ACT
At their March 21, 1995 meeting, the City Council discussed possible alternative land
uses that could be considered for the South Poway Business Park. One of the uses that
was discussed was relocating the auto dealers from Poway Road to the South Poway
Business Park. While this idea has merit, the use of Redevelopment funds for this
purpose appears to have been precluded by the passage of AB 1290, which went into
effect on January 1, 1994.
ENVIRONMENTAL REVIEW
This report is exempt from environmental review.
FISCAL IMPACT
There is no fiscal impact related to the action recommended.
ADDITIONAL PUBLIC NOTIFICATIONAND CORRESPONDENCE
None.
RECOMMENDATION
It is recommended that the City Council receive and file this report.
ACTION
auto.sum
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CITY OF POWAY
AGENDA REPORT
TO: Honorable Mayor and Members of the City Council
FROH: James L. Bowersox, City Man~/¥~
INITIATED BY: John D. Fitch, Assistant City Manager~J'
DATE: April 25, 1995
SUBJECT: Alternate Uses For The South Poway Business Park - Auto Mall
ABSTRACT
At their March 21, 1995 meeting, the City Council discussed possible alternative
land uses that could be considered for the South Poway Business Park. One of the
uses that was discussed was relocating the auto dealers from Poway Road to the
South Poway Business Park. While this idea has merit, the use of Redevelopment
funds for this purpose appears to have been precluded by the passage of AB 1290,
which went into effect on January ], 1994.
It is recommended that the City Council receive and file this report.
BACKGROUND
At the March 21, 1995 meeting, the City Council discussed several alternative
uses that could be considered for the South Poway Business Park. At that meeting
it was suggested that staff look into and report back on the feasibility of
re!ocating the automobile dealerships along Poway Road to the Business Park and
creating an auto mall, as other cities have done.
FINDINGS
Many cities, as part of their economic development efforts, have participated in
the creation of auto malls in order to attract automobile dealers into their
city. These cities have generally used their Redevelopment Agency to assist in
the development of the auto malls by acquiring land, underwriting its
development, and often selling the property to auto dealers below the market rate
in order to induce the auto dealers to locate in their city.
During the late 1980s, many of the members of the state legislature became
concerned with cities competing with one another to attract large sales tax
producers, such as "large box retailers" or automobile dealers, into their
communities by offering various concessions or sales-tax sharing agreements.
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Agenda Report - Auto Mall
April 25, 1995
Page 2
They argued that developing previously undeveloped land for auto malls, regional
shopping centers or large discount stores was not the original intent of
Redevelopment Law. As a result, there was a movement in the state legislature in
the early 1990s to eliminate redevelopment.
In an effort to resolve this issue, the California Redevelopment Association
sponsored AB 1290, which was designed to reform redevelopment law and make
illegal some of the activities that the legislature was concerned about. AB 1290
was approved by the state legislature and went into effect on January 1, 1994.
Section 33426.5 of the Health and Safety Code which was created by AB 1290 reads
in part that:
"...an agency shall not provide any form of direct assistance to:
(a) An automobile dealership which will be or is on a parcel of land which
has not previously been developed for urban use, unless, prior to the
effective date of the act that adds this section, the agency either owns
the land or has entered into an enforceable agreement, for the purchase of
the land or an interest in the land, including, but not limited to, a lease
- or an agreement containing covenants affecting real property, that requires
the land to be developed and used as an automobile dealership."
While land along Poway Road can generally be described as having been previously
developed for urban uses, it is questionable whether the undeveloped property in
the South Poway Business Park would qualify. )he key is whether the property
could be defined as developed for urban uses prior to the law going into effect.
The industrial pads were created prior to the enactment of the law; however, the
majority of the property had not been built upon by the time the law went into
effect.
Without assistance from the Redevelopment Agency, it would be cost-prohibitive to
try to relocate the automobile dealers to the South Poway Business Park.
ENVIRONMENTAL REVIEW
The subject matter of this report is exempt from environmental review.
FISCAL IMPACT
There is no fiscal impact related to the action recommended.
ADDITIONAL PUBLIC NOTIFICATION AND CORRESPONDENCE
None.
RECONHENDATION
It is recommended that the City Council receive and file this report.
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