The City Council, acting as the Redevelopment Agency, has approved an agreement with a car dealership that guarantees the agency at least $125,000 in sales tax revenue a year.
The agency approved a development agreement last month with Nick Alexander Imports, a BMW dealership and one of the four largest car dealers in the city. Under the agreement, the agency will loan the dealership $640,000 to allow it to relocate and expand its facilities. In return, the dealer agreed to remain in the city for 15 years and guaranteed from $125,000 to $150,000 in revenues a year, said James Funk, director of redevelopment.
Funk said the dealership, now on Pacific Boulevard, will move to Alameda Street and Gage Avenue.