Claremont : Loan for Auto Park Buyer
The City Council unanimously approved an $800,000 loan that would enable Takashi Sugimara of Honolulu to buy the bankrupt auto park that provides half of the city’s annual sales tax revenue.
Acting as the city Redevelopment Agency, the council authorized the 10%, seven-year loan Tuesday. Members agreed that the loan is necessary to the continued operation of Claremont Auto Park.
With sales of more than $101 million in 1989, the park generates about $1 million in sales tax each year and employs about 200 people. The park, owned by Chicago businessman Joe Wilson, filed for reorganization under Chapter 11 of the federal bankruptcy laws in April.
Peggy Proestos, economic development director, noted that the city would collect taxes equal to the amount of its loan if the auto park survives one more year.
Sugimara has owned and operated dealerships in Hawaii and Southern California for 11 years. In 1987, he opened an Acura dealership in Huntington Beach. The next year, he bought Los Gatos Honda and also developed an auto mall in Vacaville.
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