I just came across this article from The Press Enterprise. I think that the City of Moreno Valley can better utilize its money by spending it on other things that can actually improve the city and bring more jobs. Let me know what you think.
"The Moreno Valley Auto Mall began flashing its new and improved identity to motorists Monday by switching on its 97-foot-tall freeway sign that cost the city just under $800,000.
The digital marquee is part of a $2 million upgrade funded by the city's redevelopment agency to help revitalize an industry which is essential to Moreno Valley's economy.
Prominent, state-of-the-art readerboards are important marketing tools, said Barry Foster, the city's economic development director. He noted that the auto mall generates many jobs and a significant portion of the city's sales tax.
"Thirty-five percent of the people in Riverside County purchased new vehicles outside the county in 2008-09," Foster said. "Advertising our auto mall is a huge thing in competing."
The city's investment will upgrade these 74 acres east of Moreno Beach Drive immediately south of Highway 60, by replacing signs that are nearly two decades old and installing landscaped parkways, sidewalks, driveways and new vehicle display areas.
The city also is making street improvements, eliminating parallel parking areas along Eucalyptus Avenue with diagonal parking to create 40 to 50 additional spaces.
"The sign and street improvements are all part of the city's strategic economic plan to bring in more jobs and more sales," said City Manager Henry Garcia.
Foster said the auto mall represented 15.9 percent of the city's sales tax revenues in the 2006-07 fiscal year. By 2008-09, that income had plunged to 9.7 percent.
The following year, with the loss of Buick/GMC, which was represented by another dealer, the auto mall's sales tax contribution further dropped to 8.2 percent, Foster said.
But things began turning around after the Moss Bros. Auto Group brought the GMC andBuick stores back to the auto mall this past December, part of the expansion launched a year ago August when the group took over a Chevrolet franchise in the mall.
Under Moss Bros. umbrella, the five dealerships at the auto mall employ a staff of 400 and represent Jeep, Chrysler, Dodge, Ram, Honda, Toyota, Scion, Chevrolet, Buick, and GMC.
Sales, especially from the Internet, are up a bit over a year ago, said owner Glenn MossSr.
"The sign is spectacular," he said of the 21-foot-high by 30-foot-wide marquee with 261,888 light-emitting diodes (LEDs) on each screen. Construction started in April and wrapped up June 8.
Foster said the auto mall rehabilitation has been in the works for several years, one of the city's six capital improvement projects funded through a $42 million tax allocation bond issued in December 2007 and approved by the City Council.
The city must spend the bond money in five years, 20 percent equally spread out per year, subject to an IRS audit.
Thirteen months ago, the city approved a deal in which Moss Bros. will retain 20 percent of the sales taxes generated from its dealerships over two years, with a cap of $250,000 a year, to fund expansion efforts.
"Obviously, our goal was to try to stabilize the center, not have any more closings," Foster said.
Reach Laurie Lucas at 951-368-9569 or llucas@PE.com
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