Galpin Makes Bid on Burbank Tract for New Ford Dealership

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Galpin Makes Bid on Burbank Tract for New Ford Dealership

By JACQUELINE FOX

San Fernando Valley Business Journal

Bert Boeckmann, owner of Galpin Motors, says he’s revived his long-stalled plans to purchase a prime swath of property in Burbank owned by the Ford Motor Co. and bring a Galpin auto franchise to the city.

Although Boeckmann remains tight-lipped about specifics, he confirmed he has made an offer on the 8.14-acre parcel, formerly home to Zero Corp., which sits adjacent to the Golden State (5) Freeway off-ramp on Front Street. He said he planned to meet with Burbank city officials over the coming weeks to present his final proposal.

“We have reached an agreement to acquire the property from Ford,” said Boeckmann, who owns the largest and most successful Ford dealership in the Valley and is Ford’s No. 1 franchisee. “Right now we are in the process of evaluating specific plans for the property and we are considering bringing in an auto dealership to Burbank.”

Burbank city officials confirmed the two sides have met and that Boeckmann appears ready to once again pursue his plans for bringing the city its first major auto dealership.

“(Galpin’s attorneys) called us to a meeting a couple of months ago and told us they were going to be bringing us a proposal to purchase the property and put in an auto dealership,” said Sue Georgino, Burbank’s community development director.

Carrie Owens, an asset manager for Ford, confirmed the company and Boeckmann have struck a deal but also declined to give specifics.

Ford is said to have purchased the property for $12 million in the late 1990s with the intention of luring its star franchiser, Boeckmann, to the site. The city, anxious to get its hands on a large dealership with a proven track record, offered Boeckmann $12 million in tax and construction subsidies, along with its own adjacent 3.8 acre parcel, to help seal the deal.

But Boeckmann balked in early 2000, leaving Ford with an empty parcel, a decaying building and a monthly maintenance bill of roughly $35,000.

In 2001, Boeckmann said he backed out of the deal because Ford reneged on a plan involving an initial public offering for his network of franchises that would have allowed Boeckmann to eventually buy out other investors.

Ford officials have refused comment on why that deal fell through but other Ford dealers in the Valley who have attempted to buy the property for their own expansion purposes, say Boeckmann has had Ford’s hands tied since.

Ford’s asking price for the land was believed to be $15.5 million, or roughly $40 a square foot, well above the roughly $15 per square foot automotive retailers are accustom to paying.

Ford officials had all but resigned themselves to holding out for a zone change, but have also let the property deteriorate in the process, to the point that Burbank’s then city manager, Robert “Bud” Ovrom, put the company on formal notice to clean it up or face stiff penalties. Those orders are still in place now, says Georgino, adding that Ford has begun to make some progress, an indication they have been preparing for a Boeckmann deal to come through.

Burbank’s retail sales tax revenues are roughly three times the state average, but its auto sales tax revenues have remained at roughly 25 percent below the state average.

By comparison, Glendale has 15 auto dealerships along its popular Brand Boulevard of Cars.

“I think it would be absolutely wonderful if Boeckmann’s plans finally move forward,” said Ovrom, who is now administrator of L.A.’s Community Redevelopment Agency, when told about Boeckmann’s latest plans. “That is the one hole in Burbank’s retail base that I’d hoped to fill and I’d sure like to see it done.”

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