City Puts Hold on Land-use Permits at Former Honda Dealership Site

At least another 45 days of vacancy is ahead for the former Diamond Bar Honda dealership.

The city council voted last night to issue a 45-day moratorium on permits for the property and will likely hold out for longer, according to City Manager Jim DeStefano, in order to draft development plans that would account for two possible projects on the neighboring property in the city of Industry.

The city's community development director, Greg Gubman, said that the city took a hit when the car dealership left in mid-2008, when it was the single highest producer of sales tax revenue into the city.

Now, a has cast more uncertainty over the construction of a football stadium in Industry on property that abuts the former Honda dealership.

A stadium proposal in downtown Los Angeles is currently competing with the Industry project.

The battle of two stadiums has complicated matters for the on which the former car dealership sits, separated from the bulk of Diamond Bar by the 57 and 60 freeways with a vacant lot and Burger King as neighbors.

DeStefano said the city will look to draft development plans suited to neighboring the stadium project and additional development plans if that project falls through and an industrial park is built on the property instead.

"They are two completely different projects and both are significant," DeStefano said.

City staff said in a report to the council that inquiries about the property have increased in recent weeks and further speculated that these requests come "perhaps [as] the result of rumors that the Industry NFL stadium may not come to fruition."

The city staff report indicates that the current zoning of the property is not in line with the long-term vision set out in the city's 2010-2011 economic development goals:

Several of these uses are at odds with the City Council’s adopted Goals and Objectives, particularly the Fiscal Responsibility/Economic Development goal which states, "(i)dentify and implement development opportunities for the former Honda dealership property that will result in the greatest net benefit to the community."

Resident Allen Wilson took issue with what he said was government interference and criticized city staff for proposing to put a moratorium on a property "that has not been used for so long."

"You're picking the winners and losers in this process and you need to let the free market work," Wilson said.

Mayor Steve Tye and Councilmember Carol Herrera said in response that there is a need for economic development planning.

Herrera said that the council is often criticized for not doing careful enough planning and that the council members are "ultimately responsible for the economic health of the city."

"We're faced with a situation where the uses would allow little to no benefit to the city," Tye said.

DeStefano said that a moratorium on permits for the property could be extended for up to two years and that the city will likely need longer to develop standards and incentives for development on the property.

Development incentives, DeStefano said, come as a result of the property being separated from any residential development — allowing zoning for taller buildings, for example.