Agency Deal Will Add Used-Car Lot to Auto Row
Eager to expand the city’s lucrative Auto Row, the Redevelopment Agency has struck a deal with a private company to build a 20-acre used-car lot on the northeast corner of the business district.
Under the plan, CarMax, a unit of Circuit City, will lend the agency $13.3 million to buy the property and to relocate tenants and buildings from the site.
A gas station, some empty buildings and miscellaneous car shops will have to make way for the project.
The car company, which is opening dealerships throughout Southern California, will then buy the land from the agency for $10.8 million, according to the agreement. The remainder of the loan will be paid back through tax rebates.
As its payback, the city expects to receive about $1.25 million per year in sales taxes.
CarMax will submit site plans to the Planning Commission on Wednesday that include an 80,000-square-foot showroom, offices, indoor service bays, auto detailing and spaces for 1,000 used cars.
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