CVS Pharmacy Considering Plans For Long Beach Traffic Circle Auto Dealership Lots
By Sean Belk - Staff Writer
July 3, 2012 – Future plans for two lots at the Traffic Circle – one recently vacated by a Mitsubishi auto dealership and another currently occupied by Hooman Toyota of Long Beach – are being considered by CVS Pharmacy, which purchased the property from Bixby Land Company in 2008, according to city officials.
CVS Pharmacy purchased the two lots totaling 3.14 acres with initial plans for developing a new retail center. Recently, the Mitsubishi auto dealership’s lease of the lot, located at 4400 E. Los Coyotes Diag., expired and the auto dealer made a “business decision” to move to the Cerritos Auto Square, according to Reggie Harrison, Long Beach deputy city manager.
“Mitsubishi reached the end of its lease term on the property and elected to locate on the Cerritos mall, which they saw as being advantageous for them and their property where they would have greater visibility from the freeway and be more closely aligned with other dealerships in that area,” he said. Harrison said the property owner is currently considering future plans of the site.
In addition, Hooman Toyota, located at 4401 E. Pacific Coast Hwy, is currently contemplating plans to either negotiate a deal to stay at the site or move as well, he said. “Hooman is exploring its options in terms of either working out a business relationship with CVS to remain there on site, purchasing that property from CVS, some other agreement or potentially relocating elsewhere . . . hopefully in the City of Long Beach,” Harrison said.
Hooman Toyota entered into a sales tax revenue sharing agreement with the city in 2010 and the agreement expires in late 2013. Harrison also said the city did not have a sales tax revenue sharing agreement with the Mitsubishi auto dealer.
Sales tax revenue sharing agreements are typically offered to auto dealerships and other large retailers that provide a significant amount of sales tax revenue to the city, he said. The city typically establishes a minimum sales tax revenue base amount and shares any additional sales tax revenue in a 50/50 split with the business, typically as a way to finance redeveloping property and expansion, Harrison said. Long Beach Circle Audi, located at 1919 N. Lakewood Blvd., entered into a similar sales tax revenue sharing agreement to pay for improvements to its Porsche dealership site, he noted.
Contacted by the Business Journal, Colin Hemphill, sales manager for the former Mitsubishi auto dealership in Long Beach, confirmed that the move was primarily a business decision and the facilities, built in the 1980s, needed major renovations. He said Mitsubishi had occupied the site for eight years. “Long Beach was a great city to have our company . . . Thank you for being a good host,” he said.
Meanwhile, the property at 3399 E. Willow St., previously occupied by Boulevard Cadillac (formerly Coast Cadillac), which moved to the Signal Hill Auto Mall, was recently vacated. Harrison said city staff is currently working with the property’s management group to find either another auto dealership or another tenant best suited to the site.
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