TO: Honorable Mayor and Members of the City Council
THRU: Jarad Hildenbrand, City Manager
FROM: Russell Bunim, Director of Community Development
1. SUBJECT
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Public Hearing pursuant to Government Code Section 53083 to consider approval of the Vehicle Incentive Program Participation Agreement with five Orange franchised automobile dealerships, contingent upon voter approval of a future Transactions and Use Tax Measure
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2. SUMMARY
The proposed Vehicle Incentive Program (VIP) is a buy-local economic development initiative designed to encourage City of Orange residents and businesses to purchase or lease vehicles from participating franchised dealerships located within the City. The Program would provide a $500 rebate toward the purchase or lease of a new vehicle and a $250 rebate toward the purchase of a qualifying pre-owned vehicle (minimum purchase price of $15,000). By encouraging local vehicle purchases, the Program is intended to protect the City's point-of-sale (Bradley-Burns) sales tax base, support local automobile dealerships and the jobs they provide, and preserve revenues that help fund essential City services.
The Program is contingent upon voter approval of the proposed Transactions and Use Tax Measure anticipated for the November 2026 ballot. Pursuant to California Government Code Section 53083, the City Council must conduct a noticed public hearing and review the attached Economic Development Subsidy Report before approving the Participation Agreement and establishing the Program.
3. RECOMMENDED ACTION
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1. Conduct and close the Public Hearing pursuant to California Government Code Section 53083.
2. Authorize the Mayor and City Clerk to execute a Participation Agreement with the participating Orange franchised vehicle dealers (Mazda of Orange, Selman Chevrolet, Nissan of Orange, Toyota of Orange, and Villa Ford of Orange) to establish the Vehicle Incentive Program for the period of April 1, 2027 to April 1, 2040...
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