City Council

CC 14. Memorandum of Understanding between the Cities of Lancaster and Palmdale Prohibiting\nthe Use of Incentives to Relocate Existing Vehicle Dealerships\nRecommendation(s):\n1. Authorize the City Manager or his designee to negotiate, finalize, and execute a\nmemorandum of understanding (MOU) with the City of Palmdale to prohibit the use of\nincentives to relocate existing vehicle dealerships, in a form to be approved by the City\nAttorney.\n2. Authorize the City Manager to finalize and execute all related documents.\nVehicle dealerships are major sales tax generators for California cities. As a result,\njurisdictions often go to great lengths, including offering sales tax rebates and other\nincentives, to attract and retain dealerships. In order to avoid these negative impacts, it\nwould be beneficial for the cities of Palmdale and Lancaster to work together to prevent this\npractice from occurring in the future.