Publication Date: Friday, January 09, 2004
Auto dealership closes
Auto dealership closes
(January 09, 2004) City worried about health of retailers
by Bill D'Agostino
One of the city's car dealerships, and largest producers of sales tax, quietly closed near the end of 2003, sparking a renewed concern among city officials about the health of local retailers.
Stanford Nissan -- located at 3001 El Camino Real, just south of Page Mill Road -- closed on Dec. 29, according to Jon Goldman, who is managing the property for Premier Properties Management.
The dealership, which former baseball star Reggie Jackson reportedly once owned, filed for bankruptcy earlier in the year. The store's bankruptcy attorney, Rattan Dhaliwal, said the shop was shut down due to economic doldrums and debts inherited by a relatively new owner.
During his first public address as mayor on Monday, Bern Beecham warned that many Palo Alto shops are in trouble and need the city's help.
"This is the kind of problem we have," Beecham said of the closed dealership in an interview. "We must look at how to protect and enhance our retail operations."
In the past, Beecham added, "we have tended to probably be a bit arrogant in our approach."
Car dealerships are one of the largest producers of sales tax for the city, raising approximately $500,000 combined in recent quarters. The city estimates that $19.3 million of its $121 million budget for 2003-2004 will come from sales tax.
The mayor has asked city officials to develop a plan to try to ensure no more shops leave town. Officials met with owners frequently in recent months, and heard that dealers needed more space to store inventory.
"That's not something we have in Palo Alto," Beecham warned.
City officials have also written letters to encourage dealers to stay in Palo Alto.
Stanford Nissan's lot is currently vacant and for lease, with hand-scrawled "closed" signs on a few windows. A colorful banner announcing a "year-end event" still blows in the wind on the storefront facing El Camino Real.
The closest Nissan dealer is in Redwood City, according to the company's Web page.
Although Stanford Nissan was one of the top 25 producers of sales tax revenue for the city, it was also one of the smaller car dealerships, according to city officials.
Palo Alto now has only eight car dealerships remaining, after starting 2003 with 10. Carlson Porsche moved to Redwood City early last year.
Anderson Honda is also believed to be considering relocation.
Bill D'Agostino can be e-mailed at bdagostino@paweekly.com
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