The Alhambra City Council will seek federal approval to use $1.37 million in federal funds to help Chrysler Corp. establish a new Chrysler-Plymouth dealership at the southwest corner of Main Street and Atlantic Boulevard.
City Manager Kevin Murphy said the proposed agreement with Chrysler calls for the city to acquire slightly more than two acres and relocate six businesses, then provide the land to Chrysler at a reduced price. Chrysler would spend $1.4 million for the land, buildings and facilities.
Southern California Chrysler officials have recommended the project, but it still must receive corporate approval. The city also must obtain federal permission to borrow from future allocations under the Community Development Block Grant program.
Murphy predicted that the car dealership, which would be Alhambra's 14th, would generate more than $130,000 a year in sales tax revenue, and be a major accomplishment in the city's efforts to promote an auto row along Main Street.