The Downey City Council this week approved a redevelopment agreement to bring an Acura dealership to Firestone Boulevard.
The agreement includes a rebate from the Downey Redevelopment Commission to help the developer--DCH Investments Inc.--acquire land at 7534 Firestone Blvd. DCH Investment is to buy the land from owner Naomia Sweet of Palos Verdes Estates for $1.95 million and build a $1.25-million dealership. The deal is in escrow, said Erin K. Tenner, an attorney representing DCH Investments.
Under the agreement, the agency will rebate an amount equal to 60% of the sales tax revenue the dealership generates for 10 years, or until the rebate totals $1.75 million.
The agreement requires the dealership to operate in Downey for 10 years. During that period, city officials project Downey will receive $1.16 million in sales tax revenue in addition to what is rebated to DCH Investments, said John F. Wager, redevelopment manager. The dealership also is projected to produce $27,060 a year in additional property tax revenue for the city.