Downey : Car Dealer to Get Rebate
The Downey City Council this week approved a redevelopment agreement to bring an Acura dealership to Firestone Boulevard.
The agreement includes a rebate from the Downey Redevelopment Commission to help the developer--DCH Investments Inc.--acquire land at 7534 Firestone Blvd. DCH Investment is to buy the land from owner Naomia Sweet of Palos Verdes Estates for $1.95 million and build a $1.25-million dealership. The deal is in escrow, said Erin K. Tenner, an attorney representing DCH Investments.
Under the agreement, the agency will rebate an amount equal to 60% of the sales tax revenue the dealership generates for 10 years, or until the rebate totals $1.75 million.
The agreement requires the dealership to operate in Downey for 10 years. During that period, city officials project Downey will receive $1.16 million in sales tax revenue in addition to what is rebated to DCH Investments, said John F. Wager, redevelopment manager. The dealership also is projected to produce $27,060 a year in additional property tax revenue for the city.
The Regency restaurant, Genes Muffler Shop and the Downey Trailer Park are on the 2.6-acre parcel being acquired by DCH Investments. The dealership will be built where the restaurant and muffler shop now stand. The firm has no plans to close the trailer park, Tenner said.
Construction of the dealership is scheduled to begin next February, Wager said. DCH Investments is a subsidiary of the Delaware-based Dah Chong Hong Trading Corp.
