BUENA PARK : City Vying for Auto Dealerships, Taxes

City officials have launched an effort to lure lucrative, tax-generating auto dealerships to its “auto row” redevelopment project.

Buena Park has lost three dealerships to the city of La Mirada--creating an annual tax loss of about $1 million--and has lured one dealership from Fullerton since it began competing with nearby cities.

Buena Park officials approached three Fullerton dealerships and persuaded Fullerton Lincoln Mercury to move to Buena Park, said Mai Hui, acting deputy director of the Redevelopment Agency. The dealership plans to open in March, 1991, as part of the auto row planned at Manchester Boulevard and Stanton Avenue.

To entice Fullerton Lincoln Mercury, the city offered the land at a reduced rate, Hui said. In return, the dealer guaranteed to generate at least $300,000 in sales-tax revenue each year. The dealership is also expected to provide another $30,000 per year in property tax revenues.

The city still is trying to lure University Acura and McClaren BMW from Fullerton, Hui said.

If all three dealerships moved, Buena Park could receive more than $1 million in taxes each year to help offset the city’s growing budget deficit, which is close to $1 million, officials said.

Fullerton Redevelopment Manager Terry Galvin said a lack of space prevents that city from offering similar incentives.

“We don’t have a lot of vacant space to work with,” Galvin said. Therefore, dealerships are able to get a better deal elsewhere, he said.

While Fullerton has not been able to fend off the advances of Buena Park, La Mirada has already acquired three Buena Park dealerships for its new La Mirada Auto Center.

Gateway Chevrolet, Ted Jones Ford and Williams Volvo are expected to move into the redevelopment project along Artesia Boulevard just off the Santa Ana Freeway, said Community Resource Director Thomas Robinson.

Having direct, freeway visibility gave them an advantage over other cities, Robinson said.

By moving four-tenths of a mile, which puts it directly off the freeway, Gateway Chevrolet is expected to increase its sales between 10 and 20%, officials said.

Robinson said La Mirada officials are still recruiting from other areas to find buyers for its auto center.

“It is part of a friendly competition between cities. If you don’t compete for the better revenue producers, you fall behind,” Robinson said.