The Cerritos Redevelopment Agency has approved the sale of two lots for the expansion of the auto mall on the northwest corner of Studebaker Road and 183rd Street. One 3 1/2-acre parcel is to be sold to Network Motors Inc., a Pontiac dealership, for about $2.2 million. The second 5-acre lot is to be sold to Donald J. La Mar, a Chrysler/Plymouth dealer, for about $3.2 million.
The agency is selling the two lots at a combined loss of about $4.2 million, representing acquisition and improvement costs not covered by the sale price. In the long run, the city says the losses will be completely compensated by sales tax income, new jobs and other economic benefits associated with the auto mall's expansion. A major source of city revenue, the Studebaker Road mall has 17 dealerships.
The Pontiac franchise is moving from Bellflower, and the Chrysler dealer is moving from Lakewood.
The agency purchased the land from General Telephone of California, which operated a service yard on the site, and a company that leased the property to an auto leasing office and an office panel firm. The agency has started condemnation proceedings against a land third owner, Artesia Milling Co., which operates a mill on the property.