The Hollister, Calif., City Council has given a local Honda Powerhouse dealer another two-year extension to repay $1.9 million in redevelopment loans due to the sagging economy.
Marty Greenwood says business at Hollister Honda "has been almost nonexistent over the past couple of years."
The 22,000 sq. ft. store, which has nine full-time and three part-time employees, was built on the site of a former bowling alley, partly with redevelopment agency loans. This is the second extension the council has granted.
A letter Greenwood sent to the council says he’s only selling half the 50 to 60 units per month he needs to move to make a profit. "We have lost hundreds of thousands (of) dollars in this venture thus far and we are taking every step to survive these difficult economic times. At this time it would be catastrophic to our business if we incur any more expenses," reads a letter cited in the Hollister Free Lance.
Despite its struggles, Hollister Honda has consistently ranked among the top 10 sales tax generators in the city, according to Development Services Director William Avera.
Greenwood and his partners can seek another extension in two years if they are unable to repay the loan by then, or the redevelopment agency could foreclose on the business.
Posted by Holly Wagner
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