Don’t Look at Me
Within the last year, the Hooman Automotive Group (HAG) purchased the Slauson-Sepulveda site it had been leasing from the U. J. Automotive Group for $9 million. The Redevelopment Agency then rightly demanded repayment of the $1,163,547 that it had kept on the books for over 12 years. Neither automotive group wanted to pay it.
How May We Help You?
Last spring, the Redevelopment Agency and HAG met in closed session negotiations 3 times, on Feb. 21`, in March 20 and on April 17. HAG finally agreed to pay the amount, but only after it had been discounted, once again, another $230,976 down to $932,571. HAG agreed to pay the newly discounted amount off in 12 equal installments of over $77,000 a month, leaving $230,976 to carry on the books.
This would finally let the Redevelopment Agency wash the larger 12-year discounted figure off its books, rewrite it, and update it at the lower amount of $230,976. The Agency also conceded that after doing its official fiscal laundering, it would turn around and give the $932,000 back to the HAG, in order to open a second dealership in Culver City. The very next month, May 15, the Agency met in closed session about redeveloping our industrial tract, the very same area that Mr. Nissani had showed interest in last year. This, of course, would be described by some Agency members as just being a coincidence.
Dealership 101
It was Mr. Nissani’s interest in our tract that led me to seek out advice from someone in the automotive trade. I contacted a local owner, who was a former president of an automotive advertising association in Los Angeles, about the interest shown in our property. He was gracious enough to take the time from his busy schedule to give me a primer and describe what amenities car dealers look for in a site. First and foremost, as with any business it’s location, location, location.
- The site must be freeway-close. It is better if it is next to a freeway. But, he continued, just being alongside the freeway was no guarantee of success. He had seen too many new dealerships set up along freeways, put up large, towering signs and announce themselves only to fail. Better yet, he said, it was very important for potential buyers to be able to see the cars on the lot as they drove by.
- The dealership should be close to a freeway off-ramp.
- The site should be easy to find once you get off the freeway.
- The lot should be a minimum of 5 acres in size.
- It should have space to store the dealership’s inventory.
- Finally, the location should be away from residences so as not to bother neighbors with the early morning noise when unloading shipments of new cars.
Here Is a Surprise
When I told him exactly where our properties were, east, along the 405, and north of the Fox Hills Mall, he said that he previously had considered the area himself. But he had decided to settle elsewhere because he felt that at 3.54 acres, it was too small. He thought there wasn’t enough room to handle inventory. When I told him that the HAG dealership was storing its excess inventory over in the Fox Hills Mall parking structure, across from its lot on Slauson, he seemed surprised by this "revelation."
I found out our area has 5 out of the 6 prime amenities that dealers are looking for in setting up a new dealership. Since much of the other areas in Culver City are far below freeway level, it wouldn’t be a stretch of the imagination to actually describe our two adjoining parcels as being "Prime Freeway Frontage."
I Wonder Where
By their actions, it seems the Redevelopment Agency and Mr. Nissani have established a good working relationship. They look to be now fiscally conjoined at the hip, contracturally, on the opening of a second site in Culver City and possibly where the site will be. It looks as if the Agency has decided to, and will now, champion Mr. Nissani’s previously lost cause to displace the 16 diverse businesses now in the area with his second dealership Of course, the members of the Agency cannot comment on this, because, as stated at the beginning of the article, they are legally bound to remain silent on all aspects of a project…that is, "If there is a project to talk about. "With all this Closed Session intrigue, doesn’t it make you wonder where the second dealership might be located? Along the 405? Hmm. Could be.
