The City Council approved, 4-1, an incentive package of more
than $1 million for the controversial Ford store at its Wednesday
meeting. The package includes sales tax rebates over a 10-year
period.
The City Council approved, 4-1, an incentive package of more than $1 million for the controversial Ford store at its Wednesday meeting. The package includes sales tax rebates over a 10-year period.
Councilwoman Hedy Chang, who has opposed locating the dealership near a populated area, voted no.
Ford, planning to locate on Condit Road north of East Dunne Avenue, had run into objections from neighbors who live off Murphy Avenue behind Nordstrom Park and are afraid of noise and light pollution and danger from test drivers using local streets. Scott Lynch of Bob Lynch Ford in Gilroy also objected to a second Ford store locating so close to his long-established dealership on Monterey Road and is seeking an injunction to stop it.
Attorney Bruce Tichinin, who is representing Lynch in the injunction, said Monday that the case is heading for a initial hearing Oct. 30.
The city’s Auto Dealer Strategy, adopted by the council earlier this year, will offer similar terms to each dealership locating in the city’s auto district, particularly the area surrounding the U.S. 101 and East Dunne interchange.
The Ford incentive package would give Ford up to a maximum total of $1,225,000 over 10-years in sales tax rebates from the city; the arrangement would end after the 10 years whether or not the maximum amount has been paid to the dealer.
Tichinin questioned the council’s action.
“This is an illegal action because it constitutes a gift of public funds,” Tichinin said.
