LANCASTER : Financial Aid OKd for Auto Dealer

Lancaster’s Redevelopment Agency has approved an estimated $800,000 in financial aid to help an auto dealer set up a Mitsubishi showroom in the struggling, city-sponsored auto mall.

Under the plan approved Monday, the city will put up a $750,000 loan guarantee for Ricky Clutter’s existing Jeep/Eagle, Mazda and Isuzu truck facility in the 45-acre mall, helping him free up enough money to build the Mitsubishi facility. The money is to be repaid in three years.

City officials said they also expect to give Clutter $50,000 to $60,000 to help relocate the Mitsubishi dealership from Palmdale. Last month, Palmdale officials approved nearly $2.5 million in aid for five dealers in that city’s auto mall.