Council Seeks Ways to Help Car Dealers

The Simi Valley City Council has appointed two of its members to meet with the city’s seven remaining auto dealers to try to help them survive the recession.

Although the council acknowledged there may be little it can do, it selected Councilmen Bill Davis and Mike Piper on Monday night to meet with the dealers, who recently approached the city for assistance.

The auto dealers told city officials that business is off by 30% to 40% because of the recession, forcing two car dealerships to close in the last six months.

City records show that auto dealerships account for about 10% of the total sales tax revenue collected by the city each year, including $692,612 last year.

The council’s staff has recommended a series of options that the city may consider to help the dealers.

They include providing low-interest loans, participating in a joint advertising campaign, giving sales tax rebates and loosening restrictions on flags, banners or signs along the freeway.

But council members said they are uncomfortable with the idea of helping only one sector of the business community.

“I have real problems with this whole concept,” Councilwoman Judy Mikels said. “If we’re going to do it for one, we have to do it for all.”

The majority of the council members said they are opposed to providing loans or allowing the dealers to erect a sign along the freeway.

But they said they may consider easing regulations on sales promotions or participating in an advertising campaign.

Councilwoman Sandi Webb suggested renaming a portion of First Street, where the dealers are located, to Auto Center Drive.