DOWNEY -- Downey Nissan is asking for $2.25 million in financial assistance from the city so it can build a new, larger dealership.
Currently located at 7559 Firestone Blvd., dealership owner Tim Hutcherson wants to build a larger facility just down the road at 7321 Firestone. The new dealership would be spread over 6 1/2 acres and meet Nissan's corporate design standards.
"Although Mr. Hutcherson is confident that the dealership can generate significant sales over time at the new location, the expansion cost will render the project infeasible without financial assistance from the City," community development director Aldo Schindler wrote in a staff report.
If the proposal is approved, financial assistance would be provided two ways:
a.) through an operating covenant agreement and sales tax revenue sharing arrangement valued at $1.25 million;
b.) and a $1 million grant through the Community Development Block Grant program.
City officials are recommending council members approve the arrangement, and suggested Downey could potentially lose the dealership without a deal.
"The potential relocation of Downey Nissan and total loss of revenue would be much more detrimental and undermine the City's delicate economic recovery and cause significant impact to services," Schindler wrote. "The City is making a significant commitment to maintain the economic momentum it has gained over the past 18 months."
Council members will consider the arrangement at its meeting tonight.