Title
Subject: Development of Infiniti Automobile Dealership
From: Community and Economic Development Agency
Recommendation: Adopt the following legislation:
(1) Agency Resolution adopting a Mitigated Negative Declaration and authorizing the sale of approximately 4.35 acres of real property located on Oakport Street near Hassler Way for $3,318,047 to, and authorizing the negotiation and execution of, a Disposition and Development Agreement with Hendrick Automotive Group for the development of an Infiniti automobile dealership; and
Body
(1) AN AGENCY RESOLUTION ADOPTING A MITIGATED NEGATIVE
DECLARATION AND AUTHORIZING THE SALE OF +41.35 ACRES OF
AGENCY AND CITY REAL PROPERTY LOCATED ON OAKPORT
STREET NEAR HASSLER WAY FOR $3,318,047, AND AUTHORIZING THE
NEGOTIATION AND EXECUTION OF A DISPOSITION AND
DEVELOPMENT AGREEMENT WITH HENDRICK AUTOMOTIVE
GROUP FOR THE DEVELOPMENT OF AN INFINITI AUTOMOBILE
DEALERSHIP; AND
(2) A CITY ORDINANCE AUTHORIZING SALE OF.93 ACRES OF CITY
LAND TO THE AGENCY FOR SALE TO HENDRICK AUTOMOTIVE
GROUP FOR THE INFINITI DEALERSHIP
SUNTMARY
This report summarizes the proposal to construct and operate a new Infiniti auto dealership along
Oakport Street near Hassler Way. Under the proposal, Hendrick Automotive Group ("HAG")
would purchase 4.35 acres of Agency and City land for $3,318,047 under the terms of a
Disposition and Development Agreement. The sale price is based on the Agency fair market
value appraisal confirmed in 2003. The land sale provides substantial public benefits for the
City,including: I)thecreationofabout47newjobsmarketedto0aklandresidents;2)
increased general fund revenues through increased property, sales and business license taxes; and
3) employment of an underused property.
Staff is recommending approval of the Agency and City actions to establish the Infiniti brand in
Oakland and to capture sales tax revenues not currently available to the City. The land sale and
development of...
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