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Council approves sale of city‑owned parcel at Auto Center Drive for Cadillac dealership; one recusal noted
Summary
The council authorized a purchase-and-sale agreement with Simpson Holdings for development of a two‑story Cadillac dealership on 6245 Auto Center Drive. Terms include a $50,000 deposit, $2,723,625 land price, a 60‑day contingency to resolve electrical undergrounding, and a roughly 22‑month construction timeline; one council member recused from the vote.
The Buena Park City Council voted to approve a purchase-and-sale agreement for a city‑owned parcel at 6245 Auto Center Drive, clearing the way for a proposed two‑story Cadillac dealership with a two-level parking structure.
Director Matt Folkes presented the project background and deal terms: escrow opens within 10 days of approval with a $50,000 deposit; total land acquisition price is $2,723,625; the agreement includes a 60‑day contingency period to resolve underground electrical line issues in coordination with Southern California Edison, and the buyer must provide evidence of financing, a project budget and permitting readiness. Construction was described as a roughly 22‑month effort from groundbreaking.
Folkes noted the site was acquired over a multi‑year period tied to I‑5 widening and that the property’s sale complies with the state Surplus Land Act; the city previously obtained HCD approval to offer the parcel for commercial use, and staff said the city will provide HCD required notice again prior to close of escrow.
Developer David Simpson attended the meeting and thanked the council; Vice Mayor Traut asked whether the city expected direct sales‑tax revenue and whether the sale was at fair market value. Staff replied that comparable dealerships suggested the site could generate roughly $1 million in annual city sales tax revenue and that the sale uses a state‑recognized appraisal process (the same method used by Caltrans) to establish fair market value — staff said there is no tax‑funded subsidy in the transaction.
Council member Hoch recused from the vote citing a conflict of interest; the motion carried for the remaining members and the city authorized the city manager and city attorney to finalize non‑monetary technical changes to the agreement.
Next steps: With council approval, escrow procedures will begin and staff will work with the buyer and external parties (including SCE and permitting agencies) during the contingency period to resolve undergrounding and financing conditions prior to closing.
