Compton : Auto Plaza Sale Rejected

A proposal by a truck sales and service firm to locate in the Compton Auto Plaza was rejected Tuesday night by the City Council, which reiterated that it will not approve the sale of property there by Brett Mitchell, whose auto dealership closed owing the city money.

Mitchell and Universal Mack Truck Sales and Services Inc. have an agreement under which the Mack franchise will pay $3.9 million for the property--$1.4 million more than the purchase price.

City Council members pointed out angrily that they gave Mitchell title to the property last fall for $2.5 million but that he never made a single mortgage payment. He also owes the city more than $100,000 for loans it gave him.

Under its original agreement with Mitchell, the council says, he cannot sell the property without council approval. The council has begun legal action to take back the property. The dealership was closed by the state in December for tax and license irregularities.

The council told Universal Mack that it was not sure it wanted a truck service business so close to the city’s new hotel, which adjoins the auto plaza. The council told its staff and Universal to work together to come up with other possible sites.