Burbank Unveils Loan Plan for Boeckmann Dealership

In an arrangement backers say will boost city finances for years to come, city officials Tuesday unveiled their plan to advance auto dealer Bert Boeckmann $3 million for the construction of an auto sales supermarket.

City officials said the council may vote on the proposal next week.

The auto dealership is expected to cost Boeckmann--a prominent Valley political figure who owns Galpin Ford in North Hills and claims to be the largest Ford dealer in the country--$18 million to construct on 12 acres near the Golden State Freeway and Burbank Boulevard.

City officials said that in addition to the loan, Burbank would give Boeckmann half of the city’s share of the sales tax generated by auto sales at the business for 10 years, up to $9 million. But he would receive only 25% of the sales tax income until the loan is repaid, at 6.5% interest, which officials believe will take three to four years.

Officials say the dealership is expected to bring in $5 million in sales its first year and grow to $121 million by its third year. In turn, the plan estimates that over 25 years, Burbank would receive about $45 million in additional sales taxes and the Burbank Redevelopment Agency would take in an estimated $9.4 million in taxes.

But critics have questioned the wisdom of giving away funds to a prosperous businessman.

Councilman Ted McConkey called the proposal “a wash” financially for the city.

“We’re acting like a Third World country that has to buy its way into the economy,” he said. “The city will be out of business if we keep on subsidizing people.”

Critics also have blasted the city’s plan to realign Front Street to give the dealership better freeway access.