Seven more acres in the Compton Auto Plaza are being deeded to the Brett Mitchell Chevrolet dealership, the same company that received $175,000 in low-interest loans from the city last year.
By a 4-1 vote Tuesday night the council, acting as the city's Redevelopment Agency, sold Mitchell the land for $2.5 million, almost $800,000 under its appraised value of $3,289,385. Under redevelopment law, cities can declare land blighted and sell it for less than the appraised value.
Councilman Maxcy Filer opposed the sale, saying, "I don't think this classifies as blighted property. It's not deteriorated."
Under the terms of his sale agreement with the city, Mitchell has 10 years to pay off the land, making 24 monthly payments of $3,000 each and 96 monthly payments of $5,000 each. At the end of 10 years, he must make a final balloon payment of $1,948,000, plus 8% interest.
When he sought loans last year, Mitchell said it was not because the dealership was in distress. He wanted the loans, he said, to expand the body shop and service and parts departments.
The loans last year were to expand the body shop, service and parts departments.