The University Ford dealership at 450 El Camino Real in Menlo Park shut down business July 26, along with a sister dealership at 4180 El Camino Real in Palo Alto.
It is Menlo Park’s third auto dealer to close in the last year and a half, joining Cadillac Buick Pontiac GMC at 1300 El Camino Real and Anderson Chevrolet at 300 El Camino Real, which closed in April and August of 2005, respectively.
The only remaining dealer in Menlo Park is Stanford Lincoln Mercury at 444 El Camino, next door to the former Ford site.
“We’re not happy about it,” said David Johnson, Menlo Park’s business development manager. “It is not without impact (on the city’s sales tax revenues).”
The city’s sales tax income in the transportation category has fallen 55 percent over the last five years, a loss that can be attributed in large part to struggling and closing auto dealers, said Menlo Park Financial Director Carol Augustine. The transportation category includes the sale of new and used cars and auto parts, plus income from service stations and car-repair shops.
During the 12-month period ending March 31, the city received $698,371 in sales tax revenue from businesses in the transportation category — down 29 percent from the year-ago period, and 43 percent from 2003-2004. That is the latest data available, Ms. Augustine said.
Ms. Augustine declined to say how much the Ford lot contributed to the decline, though she said Ford’s revenues have been dwindling over the last few years.
Mr. Johnson said he doesn’t have any businesses lined up to move into the Ford site, but the city is open to a wide range of tenants, including auto dealers. Because Stanford owns a lease on the property that is about to expire, any new tenant would have to be approved by the university.
To increase sales-tax revenue, the city is looking at ways to bring new businesses to El Camino, and is entertaining proposals for major housing and retail developments there.
Also, the city is considering an idea for a new auto mall off Marsh Road near U.S. 101. “This may be an opportunity for Ford to become interested in the east [Menlo Park] site,” Mr. Johnson said.
— The Palo Alto Weekly contributed to this report.
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