The Alhambra City Council, acting as the board of the city Redevelopment Agency, has sold $20 million in bonds to the brokerage firm of Paine Webber to finance development of the Alhambra Auto Row. The tax allocation and refunding bonds were sold at an interest rate of 6.97%.
The money will be used to retire an earlier debt and provide about $13 million to attract new auto dealerships and help existing dealers improve their properties. The city has 14 dealerships, most of them in the city's Auto Row on Main Street between Atlantic Boulevard and Fremont Avenue. City Manager Kevin Murphy said negotiations are under way for three additional dealerships, which would sell Acura, Chrysler and Pontiac cars.