Parking at center of dealerships’ complaints
Car dealers may drive right out of town if the city doesn’t kick it into gear soon.
Automobile dealerships in Santa Monica are in open rebellion and if the city cannot mend relations quickly, many are threatening to move out completely. They say the city has placed too many restrictions on them and as a result, it’s become too difficult to do business in Santa Monica.
Tonight, Mayor Michael Feinstein will propose that the city look at creating an auto mall stretching between Lincoln and 11th Street, between Colorado and Olympic, a one-block-by-three-block area that currently consists of old manufacturing facilities. Right now, the majority of car dealerships are lined up along Santa Monica Boulevard, east of Lincoln.
“What we are trying to do is amend the scope of the work we do on (dealership) standards to include the option to go outside of the district as well as along Santa Monica Boulevard,” said Feinstein. “Some repair services, for example, would be better located in an industrial area away from residences.”
But the process of building a mall for the dealerships would take years. Many dealerships risk losing their franchises if they do not expand soon.
“Even though the dealerships would love to be in an auto mall with freeway access, it wouldn’t pencil out,” said Len Sheridan, owner of Sheridan Toyota and chairman of the automobile dealers task force.
“First it would take years to build and the city would need to acquire the (current industrial) properties with eminent domain,” he said. “And (dealerships) either own our lots or have long leases. The economics in all probability will not pencil out.”
Auto dealerships are big business for the city, bringing in the single highest source of tax revenue. Annually, dealerships generate about $10 million for the city, which consists of about 3 percent of the entire city budget, according to Sheridan.
Some council members believe the city may be cutting off the hand that feeds it if it doesn’t start working with the dealerships.
“I think we’ve screwed them to no end,” said Councilman Herb Katz. “They need some regulatory placed on them, but we have swung that pendulum so tight that we’re choking them off.”
“I think we’ve screwed them to no end. They need some regulatory placed on them, but we have swung that pendulum so tight that we’re choking them off.” — — HERB KATZ City councilman
When dealerships first complained to the city about parking and regulation problems, the council asked for a report outlining their grievances and detailing the changes they proposed. The 200-page document took two years to produce and cost more than $100,000.
But just before the dealerships were about to submit their findings, the city council enacted preferential residential parking near their businesses from 7 a.m. to 2 a.m.
“Before we could submit our report, the city council took action,” said Sheridan. “So before ever reading this costly report, which they asked for, they acted. It is a very sore point with us (dealerships).”
The Santa Monica Chamber of Commerce sued the city, claiming that preferential parking infringed on the rights of businesses, but the chamber lost the first round in court and has appealed.
“We don’t think the chamber’s lawsuit is helpful,” said Feinstein, “but sometimes the path we take is circuitous.”
Now many of the residential streets remain empty during the work day. Sheridan and other dealerships must make their employees park by the beach and take a shuttle to work.
Sheridan said the city won’t let him build more parking. He said he bought a lot one block away from his dealership for a parking deck, but the city said it would only consider his plans after he brought his dealership, built in the 1950’s, up to current dealership standards. Yet it is difficult to determine what those standards according to the city’s ambiguous code, Sheridan said.
“It was so costly, it was prohibitive,” he said. “In the end, I had to sell the lot and now it’s sitting vacant.”
Feinstein said the city understands that the dealerships are suffering. He said the city has commissioned a study of the dealerships’ report by its own experts and they are making progress.
“We are moving smartly, taking a systematic approach that is hopefully going to relieve stress on neighborhoods and small businesses,” he said. “We hope to promote livability in the neighborhoods and prosperity for businesses in the city.”
Originally published in the Santa Monica Daily Press print edition on December 18, 2001. Read the original PDF.