Poway OKs deal to move Toyota dealer

The dealership will lease a redevelopment agency-owned building that once housed a Chrysler dealership for 15 years, committing to maintain a new car business there for at least 12 years. The owners will not be charged rent providing the company generates $3 million in net sales tax revenue over the life of the agreement. The amount represents what the city recently paid to buy the property. If the revenue goal is met, the building will be sold to the dealer for $1.

Vincent Castro, who has owned the Toyota store since 2008, will privately purchase the two lots immediately to the west of the old Chrysler property. The properties include the former Dodge/Jeep dealership and a recently relocated auto repair business.

Assuming the necessary conditional use permits are approved by the council next spring, the relocated dealership could open sometime in 2012, according to Dena Fuentes, the city’s redevelopment and community services director.

Meanwhile, the Lowe’s home improvement chain has submitted plans to build a new store on lots occupied by the current Toyota store and the former Chevrolet dealership, which still houses a used car lot and repair shop. Permit applications needed for the store will be reviewed by the City Council at a later date.

Castro said his plans call for his Toyota showroom to be housed in the renovated Dodge/Jeep building and for his Scion showroom and used car business to be located on the city-owned land. A Toyota service center will be housed in the former auto repair building, Castro said. All three buildings would be extensively remodeled to comply with Toyota design standards, he said. A city staff report estimates that Castro will put $13.5 million into renovating the properties.

Whether the new Toyota dealership will include an auto body shop remains to be seen. The possibility dominated Tuesday night’s public hearing on the development agreement, with the owners and employees of three private auto body shops in town lobbying against a new Toyota shop. They argued that the recession has already cut their business by 35 percent and that it is unfair for the city spend tax dollars to create new competition.

Several neighbors living behind the properties also questioned an auto body shop’s impact on air quality, noise and dust.

Castro told the council he plans on dedicating four of his service bays to Toyota-only customer collision repairs. City officials said that Castro would need to apply separately for the use, which is not part of the development agreement, and go through an environmental review process.

It was unclear Tuesday night how a four-bay collision center would impact the other body shops or whether not having a collision repair service would be a deal-breaker for Castro.

Two other speakers, one a former Toyota employee and the other a representative of a statewide Peace and Freedom Party candidate, questioned whether the city should do business with Castro, whom they said purchased the Poway business knowing that the business had a history of mold problems that allegedly cause health issues. Castro did not comment on the allegations.

In other business, the council:

• Heard former Councilwoman Mary Shepardson ask that neighbors be brought into the process of planning for the new Lowe’s store. A neighbor herself, Shepardson said her concern is “that the train has left the station. I just hope the homeowners aren’t thrown under the train.”

• Heard comments from four residents in opposition to a proposal to light the soccer fields at Arbolitos Park. One person spoke in support of the idea. The council will take up the matter on Sept. 7.