Auto Dealership Plans $3.1 Million Expansion In Temecula

TEMECULA, CA — An auto dealership that is already a top 25 sales tax producer for Temecula is planning a $3.1 million expansion in the city.

Temecula Valley Toyota is undertaking the "substantial" private investment to expand its operations at 26631 Ynez Road and 41902 and 41922 Motor Car Parkway.

Once complete, the expansion is expected to bring thousands of dollars into the city's coffers through annual sales tax revenue. The project is also anticipated to create approximately 60 jobs within five years, according to city documents.

Once complete, the project will feature a customer service center, a canopy for queuing cars, and a detached canopy for waiting customers. The expansion includes approximately 4,182 square feet of new building space, a new 287-square-foot detached canopy, and an additional 7,918-square-foot canopy to support high production output and sales, according to city documents.

"The improvements will enhance the City’s economic base, create new employment opportunities, and increase property and sales tax revenues," according to city documents.

The city of Temecula offers an auto dealer incentive for dealerships looking to establish a new

location or expand within the city, and on Tuesday City Council is expected to approve a fee reimbursement agreement with Temecula Valley Toyota. The incentive will reimburse development impact fees and/or user fees associated with the expansion.

Under the terms of the proposed agreement with Temecula Valley Toyota, the dealership will be reimbursed up to 75% of verified annual sales tax revenue over the first four quarters of the expansion's operation, or 2% of the actual construction costs. The maximum reimbursement is $250,000 according to city documents.