Court Sides with Palmdale in Dealership Squabble

A Los Angeles Superior Court judge put the brakes on a car dealership moving from Palmdale to Lancaster. In issuing an injunction that prevents Lancaster from providing $600,000 to dealer owner Lou Gonzales, Superior Court Judge David P. Yaffe invoked a state law that municipal funds cannot be used to entice car dealers to relocate within the same service area. With the financial assistance, Gonzales was going to move his Antelope Valley Chevrolet dealership from Palmdale to the Lancaster Auto Mall. Yaffe’s injunction will keep the city from offering any assistance, either directly or indirectly, said Murray Kane, a special counsel for the City of Palmdale. Lancaster officials said the Antelope Valley Chevrolet relocation will move ahead while the monetary incenitive issue is handled at trial. The city is also going ahead with the purchase of a vacant dealership building at the auto mall. “We are pleased with the judge’s decision today which now allows Antelope Valley Chevrolet to move forward in opening this new dealership,” said Lancaster City Councilman Marvin Crist. “This strengthens the City’s retail base and cements the Lancaster Auto Mall as a regional auto sales destination.” Mark R. Madler