LYNNWOOD — Thanks to a $2.57 million land deal with the city, a Jaguar/Land Rover dealership will open in Lynnwood by November.
Seattle Investment Properties agreed to buy the 3.45-acre lot from the city of Lynnwood in June 2004, but the deal officially closed last week. The deal was delayed because the site is next to I-5 and needed special permits from the State Department of Transportation to be developed, city officials said.
Jaguar/Land Rover of Lynnwood is being built on a narrow, wedge-shaped lot along Poplar Way, located east of I-5 and west of Heritage Park. The parcel owes its unusual shape to the curve of the I-5 northbound 196th Street off ramp, which defines the parcel’s north boundary.
The 28,900-square-foot luxury car dealership will generate about $350,000 per year in retail sales taxes and create about 50 new jobs in the city, said David Kleitsch, the city’s economic development director. Jaguar’s arrival also proves the market for luxury goods is growing, he said.
“It shows that we are maintaining our retail dominance,” Kleitsch said.
The new Lynnwood dealership is affiliated with Auto Center Northwest, which operates Jaguar/Land Rover of Bellevue and Jaguar/Land Rover of Seattle.
Al Monjazeb, the company’s president, said Lynnwood is a good place for a new dealership because the area is growing. Market studies indicate there are people in Snohomish, North King and Skagit counties who want to buy Jaguar and Land Rover vehicles but don’t want to drive to Bellevue or Seattle for maintenance, Monjazeb said. A Lynnwood dealership will be more convenient, he said.
“There is a lot of growth, but our cars have become extremely affordable,” Monjazeb said. “With all of the investment the city has made with the (Lynnwood Convention Center), they are more focused about bringing more business into that area. … We are excited. We like the idea, otherwise we would not be spending millions of dollars on it.”
The city of Lynnwood acquired the land for $1.85 million to build the I-5/196th Street interchange and realign Poplar Way. After the interchange was built in 1998, the city decided to sell the left-over land.
Jaguar/Land Rover of Lynnwood will be a good addition to the city’s robust automobile market, Kleitsch said.
In 2005, the city collected $2.98 million in retail sales taxes from automotive sales and maintenance, according to Pat Dugan, the city’s interim finance director. That is about 17 percent of all retail sales tax revenue the city collected in 2005, Dugan said.
Tax revenue from automobile sales and maintenance has grown steadily in recent years, Dugan said. The city collected $2.83 million in 2004, $2.78 million in 2003 and $2.56 million in 2002.
Poe Construction of Auburn, the general contractor, started clearing the site in recent months with the city’s permission. Construction is now underway, Monjazeb said.
The dealership building will be about 30 feet tall, according to city records. There will be 153 parking stalls, including 105 reserved for vehicles on display or waiting for maintenance.
A 90-foot-wide demonstration track where customers can test drive vehicles on rugged terrain is being built next to I-5.
Jaguar/Land Rover’s arrival is part of a growing market of luxury car dealerships in Lynnwood.
Mercedes-Benz of Lynnwood, 20515 Highway 99, opened last October. The lot used to be occupied by Lexus of Seattle, which opened in Lynnwood in 1989 and has moved to another Lynnwood location.
“The city of Lynnwood has been very good for us,” said John Halata, dealer principal at Mercedes-Benz of Lynnwood. “They have welcomed us here and it is a pleasure to be here.”
Halata’s business partner is Phil Smart Jr., who owns and operates Mercedes-Benz of Seattle. The Seattle dealership has been in business for 46 years, Halata said.
The Lynnwood location is more convenient for customers in Snohomish and North King counties, Halata said.
“It makes it easier for people to come to us and it is not as congested as other areas,” Halata said.
Last June, the Lexus dealership in Lynnwood moved to 20300 Highway 99, which is twice as large as its former site. Kuni Automotive, which owns the Lexus dealership in Lynnwood, looked at other cities and decided to stay in Lynnwood because the business and political climate is “favorable,” said Greg Goodwin, the company’s chief operating officer.
“Business is up quite a bit (in Lynnwood),” Goodwin said. “Lexus is strong nationally. We are very confident in the demographics, the growth in the area and the direction the general economy is taking. Our increases last year were double digits.”
Goodwin said Lexus welcomes the competition from Jaguar/Land Rover or others.
“We think having many — if not all — of the luxury brands represented in Lynnwood will strengthen our hand. We know our product is competitive,” Goodwin said. “It means other dealers are seeing the opportunities that exist in Lynnwood.”
Jenny Lynn Zappala, editor of the Lynnwood/Mountlake Terrace edition of the Enterprise, can be reached at lynnwood@heraldnet.com or 425-673-6531.
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