Wednesday, July 30, 2014
YOLO COUNTY NEWS
99 CENTS

Volkswagen dealership delayed

By
May 25, 2011 |

vw-logo

Hanlees Automotive’s plans to open a Volkswagen dealership in Davis are delayed because the owners hit structural complications while proceeding with construction.

The owners had planned to remodel an existing building for a showroom at the former Ford Motor Co. dealership on Chiles Road, but it now seems starting from scratch with new construction might make more sense, Community Development Administrator Katherine Hess said.

Construction was expected to start this spring, with occupancy in October, Hess said.

Despite the delay, there is no intention to abandon the project, owner Don K. Lee said Tuesday. Lee’s business partners are Dong I. Lee and Kyong S. Hong.

Lee said the owners have not yet decided how to address the engineering issues, but will have a better idea in a couple weeks.

The Davis City Council last August approved a $1 million loan to Hanlees from redevelopment funds to help the company offset what was at the time an estimated $2 million project.

If Hanlees decides to build new or almost new, rather than remodel, construction costs may be higher, but the owners do not expect more financial assistance from the city, Lee said.

“We’re not going back to the city for additional money at this time,” Lee said.

But the City Council will need to approve an amended loan agreement, which will reflect necessary changes, including the time frame, Hess said. The amended contract likely will be ready for council review in June, she said.

Planning changes can be reviewed and approved at the staff level, she said.

The council approved the loan because car sales are a reliable local revenue stream. The Volkswagen dealership is expected to create 30 new jobs and generate $235,000 in annual sales tax revenues for the city’s general fund.

Under the approved contract, the loan will be forgiven if the dealership generates enough revenue for the city. The repayment amount is $133,314 annually, but sales tax revenues of more than $174,007 a year will lower repayments to $59,307.

The debt is forgiven when sales tax receipts total more than $244,234 a year.

— Reach Crystal Lee at clee@davisenterprise.net or (530) 747-8057.

Comments

comments

  • Recent Posts

  • Enter your email address to subscribe to this newspaper and receive notifications of new articles by email.

  • .

    News

     
     
    Biggest book sale to date opens Friday at Davis library

    By Enterprise staff | From Page: A4

    Tee off for Davis’ continued prosperity

    By Lily Holmes | From Page: A4

     
    Tasting event benefits Yolo Land Trust

    By Lily Holmes | From Page: A4

    Center for Families hosts Summer Carnival

    By Enterprise staff | From Page: A4

     
    Vintage car show planned this fall

    By Enterprise staff | From Page: A4

    Davis native named a Schweitzer Fellow

    By Special to The Enterprise | From Page: A4

     
    Share your love of nature with young wetlands visitors

    By Special to The Enterprise | From Page: A4 | Gallery

    Movies in the Park return this fall

    By Enterprise staff | From Page: A4

     
    Tips, techniques will give you a green thumb

    By Enterprise staff | From Page: A5

    How the Bockler wasp got its name

    By Kathy Keatley Garvey | From Page: A5 | Gallery

     
    DHS Class of ’94 set 20th reunion

    By Enterprise staff | From Page: A5

    Kiwanis golf tournament supports local agencies

    By Enterprise staff | From Page: A5

     
    Grief support focuses on journaling

    By Special to The Enterprise | From Page: A5

    Drop off school supplies at Edward Jones offices

    By Enterprise staff | From Page: A5

     
    Wine-tastings will benefit YCCC

    By Enterprise staff | From Page: A5

    Yolo County CASA seeks volunteer child advocates

    By Enterprise staff | From Page: A7

     
    UC Davis alumnus hopes to bring amateur radio to Nepal

    By Rachel Uda | From Page: A7 | Gallery

    Recycle old paint cans for free

    By Enterprise staff | From Page: A8

     
    .

    Forum

    Violence as entertainment

    By Letters to the Editor | From Page: A6

     
    Shocked at vampires story

    By Letters to the Editor | From Page: A6

    Paul Krugman: Corporate artful dodgers

    By Paul Krugman | From Page: A6

     
    Nicholas Kristof: The world’s coolest places

    By Nicholas Kristof | From Page: A6

    Tom Meyer cartoon

    By Debbie Davis | From Page: A6

     
    Gravel mining affects us all

    By Letters to the Editor | From Page: A6

    .

    Sports

    A’s rally to win

    By The Associated Press | From Page: B1

     
    Morse homers but Giants lose 6th straight

    By The Associated Press | From Page: B1

    Fiona Buck pushes the limits in para-athletics

    By Felicia Alvarez | From Page: B1 | Gallery

     
    Schaub settles in as Raiders starting QB

    By The Associated Press | From Page: B2

     
    .

    Features

    .

    Arts

    Smither releases new CD Saturday at The Palms

    By Kate Laddish | From Page: A9 | Gallery

     
    RootStock kicks off ‘Día de Albariño’

    By Enterprise staff | From Page: A9

    Folk musicians will jam in the Arboretum

    By Enterprise staff | From Page: A9

     
    YoloArts to host a state of change exhibit

    By Enterprise staff | From Page: A9

    UCD professor Andy Jones named Davis’ new poet laureate

    By Rachel Uda | From Page: A9 | Gallery

     
    Molten art on display at Davis Arts Center

    By Enterprise staff | From Page: A9

     
    Brady earns top honors at State Fair

    By Enterprise staff | From Page: A9

    .

    Business

    .

    Obituaries

    .

    Comics

    Comics: Wednesday, July 30, 2014

    By Creator | From Page: B6