Compton : Council Rescinds Franchise for Truck Dealer in Default

An agreement to develop a truck franchise in the Compton Auto Plaza was unanimously rescinded by the City Council Tuesday night after the firm, Universal Mack Truck Sales and Services Inc., failed to deliver its $1-million down payment.

The money was due April 30, and on May 8 the city sent the firm a notice saying it had 30 days to make good on the promised down payment. It was to be the first installment on a development agreement that promised Compton $500,000 a year in sales tax revenue, in addition to the $2.8-million purchase price for the land.

Mack’s withdrawal is a setback for the city, which has been trying for a decade to develop what it originally envisioned as a thriving auto mall alongside the Artesia (91) Freeway. When dealerships failed to materialize, however, the city used some of the land for the Compton Lazben Hotel. The council recently rejected a bid by a nonprofit group to put low-cost, owner-occupied townhouses in the plaza.