GARDEN GROVE : City Is Buying Land to Expand Auto Mall

The city has agreed to pay $220,000 for property to be consolidated with adjoining land to form an expanded auto center, officials said.

Motivated by a consultant’s findings that the most successful car dealerships are located in auto malls within sight of a freeway, the city is buying property to expand its auto center on Trask Avenue next to the Garden Grove Freeway.

Ford, Nissan and Toyota dealerships are clustered in the auto center along Trask, from Brookhurst Street west almost to Magnolia Street.

With this week’s purchase of a lot and a 1,170-square-foot house, the City Council, in its capacity as the Agency for Community Development, has accumulated six of the 21 parcels the city plans for the auto center expansion.

City officials hope to attract their first new dealer to the expanded auto mall within a year to 18 months, according to Matthew Fertal, the city’s director of economic development.

The house that was purchased this week will be temporarily rented to a family in the city’s federally funded housing program. When enough land is accumulated to accommodate a dealership, the house will be sold to the highest bidder and relocated, Assistant City Manager Michael D. Fenderson said.

Even with expansion, there probably won’t be enough space to house the 11 car dealerships operating in Garden Grove, officials said.

Therefore, officials will make efforts to develop another center on Harbor Boulevard near the freeway, Fertal said.

Car dealers provided the biggest source of sales tax to the city in 1992, officials said. New car sales generated $1.27 million in sales taxes and used car sales provided an additional $570,000.