![]() “They want to get into the market before someone else gets there,” he added.Ĭaldrello’s temporary site is vacant, save for a house that was occupied by a now-bankrupt insurance agency, Soto said. Mitsubishi did not apply pressure for the quick opening, Caldrello said, but the manufacturer is “definitely anxious” to start selling in Norco. “The whole thing worked out in everybody’s best interest.” Once they start selling cars, we start getting sales tax. The money for the lot will come from the city’s Special Asset Revenue Fund, which has $1.7 million.Ĭouncilwoman Robin Grundmeyer assured residents the project was vetted and said “the city has been burned a couple of times” and the council “does not take these decisions lightly.Caldrello Motor Group pressed the city to grant a “conditional use permit” that would allow it to operate the dealership from temporary buildings, Soto said. Subsidizing reliable businesses such as Blanco’s will enhance the city’s economic base for years to come, he said. Okoro said he’s fielded questions from residents who want to know why the city is acting as a bank for local businesses. California law requires cities to provide specified information to the public before approving an economic development subsidy of more than $100,000.Īnother dealer made an offer for $800,000, but Okoro said the estimated revenues and additional employment from Blanco made this “a better option for the city to pursue.” Subsidies are used to spur economic development within local agencies through things such as grants, bonds, loans, tax exemptions and fee waivers. If Blanco’s dealership folds, the land would become city property, Okoro said. ![]() “We’ve looked at their sales tax returns, and we feel very confident that they’ll be successful here in Norco.” “This is entirely different from the previous two businesses there,” Okoro said, adding that Blanco’s used car dealership is the second largest in California. Only about $50,000 of the remaining balance was ever repaid. The Mazda dealership closed in 2009 with $463,000 remaining on its loan, Okoro said. Though the agency generated its funds independently, the city council was tasked with making decisions on their expenditures. In late 2008, a Mazda dealership operating at the same location received a $500,000 loan from the now-defunct Norco Redevelopment Agency to help the business stay open, records show. Norco resident Karen Leonard pointed to two failed businesses at the location in recent years, saying Blanco should be responsible for a “good faith” down payment to ensure the city’s investment isn’t taken for granted. If Blanco fails to generate enough sales tax to cover the $805,000 purchase price, the company will enter into a monthly repayment plan for the difference. ![]() The land is owned by the successor agency to the defunct Community Redevelopment Agency. ![]() Blanco owns several dealerships in California, Nevada and Florida, according to .Īs part of the agreement, Blanco’s sales taxes exceeding $200,000 annually over the next five years will be applied as credits to repay the city for the land, City Manager Andy Okoro said. The company will also create roughly 60 jobs through a new call center and reconditioning shop, Blanco spokesman Kevin Knox said at the meeting.īlanco, who needs more space to park cars, asked the city for help purchasing a vacant spot along Four Wheel Drive, beside his rental lot that has already undergone some renovations. ![]() Paul Blanco has a lease agreement with Bob Hemborg for 2000 Hamner Ave., where Blanco plans to build a dealership that could bring more than $300,000 annually in city sales tax, a city report states. The City Council voted unanimously Wednesday night, March 16, to front the full cost of the 1.6-acre parking lot so Paul Blanco’s Good Car Company can run a new flagship dealership there. Norco will soon buy an $805,000 vacant lot and give it to a used car dealer looking to expand next to Hemborg Ford on Hamner Avenue. ![]()
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