West Covina : Car Dealer Ponders Move

Covina faces losing another car dealership and sales tax revenue now that Clippinger Chevrolet is negotiating for a better location in neighboring West Covina.

Clippinger, a longtime Covina dealership on West San Bernardino Road, has signed an agreement to negotiate with West Covina for an 11-acre vacant parcel along the San Bernardino Freeway (10). The property is at the northwest corner of Holt and Grand avenues.

If Clippinger makes the move, Covina will have lost two car dealerships, and hundreds of thousands of dollars in annual sales tax revenue, in less than a year. Earlier this year, Covina Dodge became West Covina Dodge after the Covina dealership changed hands and moved to West Covina’s Auto Plaza.

At its meeting last Tuesday, the West Covina City Council approved the negotiating agreement with Clippinger, as well as an option-to-buy agreement with the owners of the land. Steve Wylie, West Covina’s assistant city manager, said the city’s Redevelopment Agency will now consider buying the parcel for $12.7 million, and then sell it to Clippinger at a reduced cost.

The city wants to entice Clippinger Chevrolet to locate within its borders because the dealership could generate more than $500,000 a year in sales tax revenue for the city, Wylie said.

Clippinger Chevrolet approached the city earlier this year to talk about the parcel, Wylie said.

Scores of car dealers statewide have relocated along freeways, which offer increased visibility and easier access.