FOUNTAIN VALLEY : Pact Will Allow RV Dealer in City

City officials have wrapped up a deal to bring the city’s first recreational vehicle dealership to town, a move that is expected to pour $300,000 in annual sales-tax revenues into the municipal treasury.

“This deal has the potential to take care of the money the state took from us,” City Manager Ray Kromer said.

Kromer said the city is expected to lose about $400,000 in state revenues from its general fund, money used to pay for services such as public safety.

Annual sales for the dealership, Sunset Motors, which for 31 years has sold luxury motor homes priced at $250,000 and up, are projected to be in excess of $30 million, said Leonard Basinger, an attorney representing owner William P. Whitledge Jr.

The City Council, acting as the Fountain Valley Agency for Community Development, approved an agreement Tuesday to allow Sunset Motors to move its operations to a four-acre site at Ward Street and Talbert Avenue, next to the San Diego Freeway.

A portion of the site is the former Elks Club property, which will be used for the showroom and sales storage lot. Sunset Motors will maintain a sales office next to the Elks Club property, which is within the city’s redevelopment area.

Basinger said Sunset Motors plans to renovate the Elks Club building at an estimated cost of $500,000. Its Irvine and San Diego showrooms will be closed to consolidate all sales operations in Fountain Valley, Basinger said.

Basinger said Sunset Motors is moving to Fountain Valley because of the freeway visibility of the site and the pro-business attitude of the city.

The dealership is expected to open in late November, he said. “Basically, it’s a win-win situation. Everyone’s going to profit,” Basinger said.