Agreement to Buy Site at Auto Center Reached

City officials’ efforts to attract a third dealer for their Garden Grove Auto Center redevelopment project moved closer to reality with approval of an agreement that calls for the city to purchase a 1.87-acre site.

Garden Grove will purchase the land, at the eastern end of the site, for $1.05 million and resell it for $530,000 to a developer representing the Korean-made Hyundai car. John Graichen, city redevelopment general manager, said the lowered resale price is necessary in order to attract a dealer and can be justified by the predicted annual sales taxes of $1.02 million and property taxes of about $15,000.

The City Council, acting as the Agency for Community Development, approved the agreement Monday night. Developer Kent Browning submitted a deposit of $25,000 on the project and the agreement calls for the price of the land to be increased if various conditions, including submitting construction drawings and a time limit on close of escrow, aren’t met.

Graichen said that Garden Grove Toyota, the only dealer now operating at the auto center, located near the Garden Grove Freeway between Brookhurst and Magnolia streets, saw sales increase after relocating to the site in 1984. Garden City Dodge will construct a second dealership at the site, with its opening tentatively set for late next year. Negotiations are under way with several potential dealers for the fourth site, Graichen said.