New car dealership expects to be open by Christmas
Despite a lawsuit claiming unfair competition and poor judgment at City Hall, construction of the Ford dealership on Condit Road is poised to begin.

Tim Paulus, who will be in charge of the store, said the land sale is complete and that he has pulled permits for the building. He expects the new and used car dealership to be open by Christmas.

The City Council, except for Councilwoman Hedy Chang, voted in June 2003 to approved the Ford store as part of the city’s auto dealership strategy, designed to add much-needed sales taxes to the city treasury and a few jobs as well.

The dealership was the subject of several contentious City Council meetings in 2003 when residents who live off Murphy Avenue and behind Nordstrom Park on East Dunne Avenue complained that the store would pose a danger to their children and to their quality of life.

Responding to the residents’ worries, the City Council asked Paulus to make adjustments to his plans so light, noise and pollution would not affect the area and to restrict test drives to major streets and forbidding drivers to use sidestreets. Paulus did produce revised plans addressing those issues and said he followed the city’s suggestions.

Attorney Bruce Tichinin, representing Scott Lynch of Bob Lynch Ford in Gilroy – who objected to Ford Motor Co. locating a competing store so near – said the legal battle is not over despite several setbacks.

Tichinin differed with the council’s view that the problems would go away by Paulus’s mitigations, changes in the plan to alleviate the noise, light and safety issues.

Scott Lynch sued the city and Paulus saying the 10-mile distance between the new dealership on Condit Road and Lynch dealership on Monterey Road at Luchessa in south Gilroy was too close. The lawsuit claimed unfair competition. He further claimed that city officials and the council were too hasty in approving the Morgan Hill store.

The case was heard recently and the judge ruled against Lynch, said Sean Absher, Paulus’ attorney.

“The City of Morgan Hill and Paulus prevailed on all levels in trial court,” Absher said Thursday. “They were fully vindicated.”

Absher said the only outstanding issue now is whether or not Lynch decides to appeal. Tichinin said an appeal was likely.

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A staff member wrote, edited or posted this article, which may include information provided by one or more third parties.

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