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Council advances amended agreement with Tustin Auto Center for freeway digital billboard
Summary
The council approved first reading of an amendment (DA 24-0007) to extend the term and set a five‑year sponsorship-indexing method for the Tustin Auto Center freeway digital display; the motion passed unanimously 5–0.
The Tustin City Council on first reading approved an amendment to a development agreement that governs the Tustin Auto Center’s freeway digital display sign, extending the agreement’s term and establishing a five‑year method to adjust a $25,000 annual community sponsorship contribution.
Real Property Manager Ken Figueroa told the council the amendment (DA 24‑0007) addresses two issues found in the original DA approved in June 2020 (Ordinance 1507): the previous short term and the lack of a formula to adjust the $25,000 annual sponsorship. Under the proposed amendment, the DA will have a renewable five‑year term that automatically extends unless terminated by either party. The sponsorship contribution would be adjusted every five years based on car sales tax data; adjustments would increase or decrease the base amount but never fall below $25,000.
"We are proposing a renewable five‑year term, which would be automatically extended unless terminated by either party," Figueroa said, summarizing the recommended changes. He also said the auto center generates about $8 million in sales tax for the city’s general fund and noted the proposed contribution is on top of other dealer contributions.
Council members pressed staff on the indexing approach and long‑term purchasing power. Council Member Fink urged the city to monitor the real‑dollar value of the sponsorship so the city does not lose value over time. "As that goes through...we want to make sure that we're keeping up with real dollar values," Fink said.
Multiple council members praised the auto dealers’ economic contributions and community support. After discussion Mayor Pro Tem Nielsen moved and Gallagher seconded the motion; a roll call vote recorded unanimous approval (5–0) to conduct first reading by title only and set second reading for a future council meeting.
Next steps: the council set the ordinance for a second reading at the next available meeting and staff will return with the ordinance language for final adoption.
