City Council

CC 14. Memorandum of Understanding between the Cities of Lancaster and Palmdale Prohibiting the Use of Incentives to Relocate Existing Vehicle Dealerships Recommendation(s): 1. Authorize the City Manager or his designee to negotiate, finalize, and execute a memorandum of understanding (MOU) with the City of Palmdale to prohibit the use of incentives to relocate existing vehicle dealerships, in a form to be approved by the City Attorney. 2. Authorize the City Manager to finalize and execute all related documents. Vehicle dealerships are major sales tax generators for California cities. As a result, jurisdictions often go to great lengths, including offering sales tax rebates and other incentives, to attract and retain dealerships. In order to avoid these negative impacts, it would be beneficial for the cities of Palmdale and Lancaster to work together to prevent this practice from occurring in the future.