Newport would welcome car dealers

June Casagrande

NEWPORT BEACH -- Though it’s still a longshot, city officials are

holding on to the hope of someday luring one or more car dealers to the

airport area.

In his State of the City speech Wednesday, Mayor Tod Ridgeway said

officials are talking with car dealer representatives about the

possibility of one of these tax-rich businesses setting up shop near John

Wayne Airport. Ridgeway said attracting car dealers and hotels to the

already industrial area could have significant tax benefits with minimal

or no effects to the coastal zone or on traffic near homes.

“For every city, the highest generators of income are car dealers and

hotels,” Ridgeway said Thursday. “I would be happy to see a car dealer

come here.”

Assistant City Manager Sharon Wood said the city has been approached

several times in the last few months by auto retailers interested in

setting up shop in Newport Beach.

“We have, over the last several months, talked to a few potential

dealers who were looking for sites in that area, but as you know there’s

nothing vacant,” Wood said.

In 1995, the city gave an eight-acre parcel to Fletcher Jones

Motorcars, betting that the investment would pay off. In January,

officials declared that move a huge success when reports showed the

dealer had brought in $6.6 million in taxes over a five-year period --

$4.6 million more than they’d hoped for when they made the deal.

A few years ago, a Lexus dealer wanted to set up shop in Newport

Beach, but those talks fell through.

Though the city does not own any available land in the area, it’s

possible officials might still have some options for attracting a dealer,

perhaps by offering tax incentives for a dealer that leases land from a

private owner.

And, unlike the Koll Center expansion that was stopped by voters last

year, the lucrative tax benefits of a car dealership could be enough to

win popular support.

The Koll Center project would have added 250,000 square feet to the

existing office complex there. Compared with hotels and car dealers,

office space brings in a relatively small amount of taxes.