Council approves sale and DDA for Porsche dealership at Lincoln and Manchester; staff cites $9.1M adjusted price and $1.1M annual sales-tax estimate

The council approved a disposition and development agreement with Manchester Lincoln LLC to sell a 2.8-acre former redevelopment property at West Lincoln Avenue and Manchester for a Porsche dealership and service center.

Economic development staff said the city's appraisal yielded a $10.4 million valuation, reduced by $1.2 million for extraordinary costs tied to utilities and work in the abandoned Manchester Court right-of-way and a $200,000 escrow credit for potential jet-fuel-line remediation, for an adjusted sale price of $9.1 million. Staff's third-party economist reviewed the appraisal and concluded the adjusted price represents fair market value.

City staff estimated the project will generate about $1.1 million in annual sales tax to the city, create about 75 permanent jobs and roughly 100 construction jobs, and represent an approximately $50 million private development investment. The developer presented renderings showing a five-story, approximately 150,000-square-foot showroom and service facility visible from I-5; the project will require standard planning approvals and a conditional-use path for an auto dealership.

Developer Danny McKenna, representing McKenna Auto Group and the Porsche brand interest, said the manufacturer sought a visible North-Orange-County site and that the dealership would complement private investment already occurring in the area. McKenna said the new store is privately funded and would be developed as a high-visibility, branded showroom.

A public commenter asked about appraisal and public-procurement transparency and the presence of an unused jet-fuel line; staff said the sale proceeds largely flow to affected taxing agencies and that remediation credits and escrow arrangements were included in the negotiated price. The council voted 7-0 to approve the DDA and conveyance.