City of Oakland - File #: 003832b

• File #: 003832b
• Version: 3
• Name: Development of Infiniti Automobile Dealership
• Type: Ordinance
• Status: Passed
• File created: 9/23/2003
• In control: Concurrent Meeting of the Oakland Redevelopment Agency / City Council
• On agenda: 10/21/2003
• Final action: 10/21/2003
• Title: Subject: Development of Infiniti Automobile Dealership From: Community and Economic Development Agency Recommendation: Approve the Final Passage (Second Reading) of an Ordinance authorizing sale of .93 acres of City land near Oakport Street and Hassler Way to the Redevelopment Agency for $40,593.00, for sale to Hendrick Automotive Group for development of an Infiniti dealership

Date	Ver.	Action By	Action	Result
10/21/2003	3	Meeting of the Oakland City Council	Approved for Final Passage	Pass
9/30/2003	1	Meeting of the Oakland City Council	Approved On Introduction and Scheduled for Final Passage	Pass
9/23/2003	2	*Concurrent Meeting of the Redevelopment Agency and Council Community & Economic Development Committee	Approved as Amended the Recommendation of Staff, and Forward	Pass

Title
Subject: Development of Infiniti Automobile Dealership
From: Community and Economic Development Agency
Recommendation: Approve the Final Passage (Second Reading) of an Ordinance authorizing sale of .93 acres of City land near Oakport Street and Hassler Way to the Redevelopment Agency for $40,593.00, for sale to Hendrick Automotive Group for development of an Infiniti dealership

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 the new auto dealership will augment general fund revenues, enhance economic
development in an underutilized area, and will create new jobs for Oakla...