GM Dealership to Expand Facilities in San Fernando

The operators of an existing General Motors dealership will spend an estimated $10 million to double its size, possibly tripling tax revenue for San Fernando, City Administrator John Ornelas said Thursday.

Rydell Automotive Group, which operates four GM dealerships in the San Fernando Valley--one each in San Fernando and Van Nuys and two in Northridge--will begin the work immediately, GM spokesman Jim Price said.

North Dakota-based Rydell Automotive Group has a network of more than 30 dealerships in the upper Midwest and began operating the San Fernando dealership less than three years ago.

“We think it’s a great place for a new facility because it’s a great market,” Price said.

The land for the expansion was purchased by Rydell from a private owner, Ornelas said. The lots are adjacent to the existing dealership on San Fernando Road, just south of Chatsworth Drive, and across the street from it.

The expansion will span about two blocks, bordered by Celis and Wolfskill streets.

San Fernando officials said the project is a tremendous boost as the city strives to improve its economic base, as car dealerships are among the most lucrative generators of sales taxes.

“There will be a significant increase in sales tax revenue--from $360,000 a year now to $900,000 a year,” Ornelas said.

“Also, this sends a message to the business community that San Fernando is a viable place to do business.”