ESCONDIDO: Developer scraps condo plans, proposes used car lot

City praises change in plans for site adjacent to Lowe's

By DAVID GARRICK - Staff Writer | Tuesday, September 16, 2008 7:53 PM PDT

This vacant lot was earmarked for 160 condos, but it's now slated to became a CarMax used car lot. (Photo by Waldo Nilo - staff photographer)

ESCONDIDO ---- The real estate market crash has prompted a developer to abandon plans for 160 condominiums next to Lowe's Home Improvement in favor of leasing the empty acreage on Mission Avenue to CarMax, a national chain of used car dealers.

City officials applauded the change in plans Tuesday, explaining that they never thought it made sense to build multistory housing in an industrial area outside of the city's urban core.

The 17-acre Lowe's parcel, former site of a large Kmart, is just south of Highway 78, a half-mile east of Interstate 15 and several blocks north of downtown.

"Approving a residential project there was always a challenge for us, but we wanted a 'big box,' " said Mayor Lori Holt Pfeiler, explaining that the developer presented the condos as a package deal with the Lowe's in 2005.

Cities typically woo big-box stores and auto dealers in order to increase sales tax revenue. Other examples of big-box stores include Costco, Circuit City and Home Depot.

In order to gather enough land for the Lowe's store and the condos, the city used its power of eminent domain to seize the El Mexicano Taco Shop and the rest of a 1.4-acre parcel at 700 W. Mission Ave. for the project.

The decision was somewhat controversial at the time, the eminent domain lawsuit has not been resolved, and the taco shop is still there. But city planner Jay Petrek said Tuesday that Escondido officials are confident the issue will not delay the CarMax project.

Pfeiler said city officials are pleased that the entire Lowe's site will now feature commercial uses.

"The developer decided that a residential project would take too long for them to get a return on their investment," said Pfeiler. "It must mean that the housing market is even worse off than the car market."

Sales of new and used cars have dropped sharply in 2007 and 2008, but CarMax is still opening new locations across the nation, company spokeswoman Trina Lee said Tuesday.

Escondido would be the company's first North County location. The first San Diego County store opened last November in Kearny Mesa.

Petrek said the city will release an environmental review for the CarMax proposal at the end of this week. The city's Planning Commission is slated to consider the plans Oct. 28, and the City Council is scheduled to do so Nov. 19.

Petrek said CarMax would be the largest used car dealership in the city, with an 8,150-square-foot showroom, 3,350-square-foot service building and 900-square-foot car wash. The 5.6-acre CarMax site would also feature 324 parking spots to display cars available for purchase, and 132 spots for customer and employee parking.

The project would also include a new entry road into the Lowe's parcel and a new stoplight on Mission Avenue between Rock Springs Road and Quince Street, said Petrek.

Stephen Fitch, an attorney for developer Sunset Centers II, said CarMax hopes to begin construction early next year and open the dealership by the end of 2009. Fitch said the company was attracted to the Lowe's, a Bank of America branch and other new commercial projects nearby.

But Lee, the CarMax spokeswoman, said company officials recently decided to slow the pace of new dealership construction and that she doubted the Escondido site would open in 2009.

Lee said CarMax, which has grown to include 98 dealerships since it was founded 15 years ago, is popular with customers because its "no haggling" policy makes buying a car simpler.

City Councilman Dick Daniels said he has heard much praise for CarMax as a first-rate operation, and that he was pleased the dealership would generate new jobs and sales tax for the city. But Daniels said he was somewhat concerned that CarMax would take significant business away from the city's existing used car dealers.

However, Daniels said building condos on the site would have been a mistake.

"If we want to do any high-density housing, it should be in our urban core," he said.

Contact staff writer David Garrick at (760) 740-5468 or dgarrick@nctimes.com.

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Jaque wrote on Sep 16, 2008 7:36 PM:Another stop light in the area. Great!

Chula Vista North wrote on Sep 16, 2008 7:39 PM:We should rename our city to Chula Vista North. Please, let's use some common sense. There is a vacant (newly built) used car lot west on Mission (across from Palomar Water). Why waste the vacant lot space near Lowe's on another car lot. On Mission between Centre City Parkway and Enterprise there are about 4-5 used car lots. This area will become another Auto Parkway. How does Car Country Escondido sound?

Auto_Park wrote on Sep 16, 2008 7:43 PM:Shouldn't this business be in the autopark area? It seems like we have plenty of car dealerships and not enough parking.

department of central planning wrote on Sep 16, 2008 8:11 PM:i'm glad the city council of escondido is wise enough to realize that we should all live in multi-story condos in "the urban core".

"Approving a residential project there was always a challenge for us, but we wanted a 'big box,' " said Mayor Lori Holt Pfeiler.

one has to wonder what university granted the mayor her Phd in urban planning...or are all her decisions based on what "she" wants ?

gimmeabreak wrote on Sep 16, 2008 8:11 PM:Another car lot. Great. Not many of those in town are there? Maybe we could add a little strip mall with a check cashing biz, a tattoo parlor, a taco shop, a Mickey Ds and a 7-11, too, 'cause there shore ain't enough of those in town either.

Hilarious wrote on Sep 16, 2008 8:37 PM:I just blogged about not having ANY more used car lots when responding to the article about restricting discount stores in downtown. Apparently, the city council only cares about downtown?! Seriously, do you realize how many used car lots we have (not counting Auto Parkway)? It is disgusting. Very disappointed.

Perfect wrote on Sep 16, 2008 8:58 PM:That's exactly what we need is another used car lot

To Hillarious wrote on Sep 16, 2008 9:05 PM:You mentioned you just blogged. I am interested in reading your blog. What is your blogsite?

Escondeeter wrote on Sep 16, 2008 9:33 PM:That was a condo project that made absolutely no sense on that site. I'd have to log this one under the "developer recovered his sanity" column.

OMG wrote on Sep 16, 2008 9:40 PM:OMG. You have got to be kidding!!

The city is constantly whining about used car lots and 99cent stores and liquor stores and 2nd hand stores!!

What kind of insanity is this??

A used car lot! That will NOT enhance this area!!!

Not to mention the fact that the taco shop issue is still outstanding. Bad planning!!! Total disregard for the "little guy's property rights".

Geez Louise! What a bumble!!!

Concerned_Citizen wrote on Sep 16, 2008 10:15 PM:I remember the contentious council meeting where the four members voted to take the family owned business in eminent domain as reported here. Only Marie Waldron had sense enough to vote no.
Remember the Kelo decision? That is exactly what happened here and Abed, Pfeiler, Daniels and Gallo supported it. The city took the private business to benefit a private development. Waldron should be Mayor and maybe we can finally clean up this city!

Christine wrote on Sep 16, 2008 10:53 PM:I agree with Escondeeter...neither Condos or a car lot make a bit of sense. Where is the closest grocery store like Von's? You have to drive quite a ways in either direction. That area would be great for a Mall. We need some nice restaurants as well.

Oh Sure wrote on Sep 16, 2008 11:04 PM:We need Waldron as our Mayor...just like we need to gauge our eyes out with a sharp instrument!!

Floyd wrote on Sep 17, 2008 1:14 AM:Well, since the seized properties won't be used for the purposes originally planned, they should be returned to the original owners at no charge by way of apology.

Mariah wrote on Sep 17, 2008 5:45 AM:As if the average Escondidoian can afford a car now, new or used! Affordable "upscale" eateries would work here--Chipotle, Baskin-Robbins, Bruegger's Bagels--places not in the immediate area, but with items people can and will splurge on.

Bill wrote on Sep 17, 2008 5:47 AM:Maybe they should build a 99 cent car lot?

What happened wrote on Sep 17, 2008 5:51 AM:I am a native of Escondido and am sad to see what this once beautiful city has become.... Esconghetto. I'm out of here. Thanks a lot Council!

WOW wrote on Sep 17, 2008 6:19 AM:What and "original" idea!! Not.

Karl wrote on Sep 17, 2008 6:23 AM:Put the miniature golf course back.

Eminent domain abuse wrote on Sep 17, 2008 6:25 AM:I thought eminent domain was only to be used for the public good, and here we have seizure of another family-owned business for something that does not happen - the condos. Why not give the property rights back to the original property owners and let them decide IF they want to sell their property and/or swap their property for another desireable location. It just isn't fair. The big guys get bigger. The little guys just get swept away.

lol wrote on Sep 17, 2008 6:32 AM:all the people who have their cars confiscated when the police impound their cars, now can just go walk and buy another......perfect.

bogie wrote on Sep 17, 2008 7:10 AM:Oh Sure @ 11:04 PM:

Tell us how you really feel. I am very comfortable with Waldron and I think I'll leave the peepers alone.

Gallo and Abed for council

Might want to think wrote on Sep 17, 2008 7:11 AM:twice on approving a car dealership. My friends that are in the industry say they are hurting by all of the defaulted car loans. Most of the cars with defaulted loans go to Mexico so it is a total write off and causing some car lots to close. How about the Mayor put in a El Mexicano Taco Shop?

Great another wrote on Sep 17, 2008 7:41 AM:car lot. Why not a restaurant row. Oh that's right, that is only best for the protected downtown. Crazy!!

It aint right wrote on Sep 17, 2008 7:57 AM:You take away Chuck-E-Cheese and Mini Golf Course (family friendly businesses). Now you replace it with another used car lot. I don't get it, it's stupid.

Karl wrote on Sep 17, 2008 8:07 AM:Now that's funny Bill @ 5:47 AM. I laughed out loud when I came upon that one.

Dude wrote on Sep 17, 2008 8:14 AM:As others have said, auto dealers are HURTING right now, does not seem to be very good long term planning.

The mini-golf place was fun and seemed to be quite busy most of the time. Maybe another family recreation type business. There are more than enough places to buy a car.

Newblood wrote on Sep 17, 2008 8:16 AM:Does this fit into the plan to increase the number of elegant restaurants, boutiques and other upscale shops?
Our elected officials are obviously poor city planners and even worse investment managers.
If they get re-elected, we deserve this nonsense.

sheep wrote on Sep 17, 2008 8:17 AM:Some of you people are like sheep following a bad newspaper reporter off of a cliff. I love the label of "used car dealership". Kinda funny how I see CarMax commercials on the TV during primetime hours ALL THE TIME. Those commercials are not cheap. Is that the action of a lowly "used car dealership"? The author of this article is an embarrassment to journalism. CarMax is of equal quality to ANY dealership in the Auto Park, plain and simple. It BLOWS ME AWAY that people come on this blog and dis what is a great decision to abandon poorly placed condos in lue of a quality car dealership. Are you people paying attention or just mindlessly responding to David Garrick's Jedi mind tricks? Pathetic job by NC Times, by both the editor and staff writer.

What a joke wrote on Sep 17, 2008 8:18 AM:the mayor is. Not that anybody with a brain didn't already know that. Yep, just what Escondido needs - another car lot. The other poster was right - they should put the miniature golf course back in. There is pretty much NOTHING for a family to do in this city, except go to the mall, or out to eat in some crap restaurant. Yes, we have the IceOPlex, but that is a limited attraction. We have nothing. The teenagers all drive out to Oceanside, Vista, San Marcos, etc., where they can bowl, play miniature golf, play pool, and eat out at places like Elephant Bar, In 'n Out, Pei Wei. When is the city going to admit what the real problem is - that they cannot attract decent businesses because of the overall city demographics? They can't have In 'n Out, because of a billboard, but they are willing to put all sort of eyesores, like car lots, at ground level. No worries, you fools. We'll all just keep giving those tax dollars to those other cities, and you'll keep going downhill, because you are crippled by your politically correct mindset.

I agree with Floyd wrote on Sep 17, 2008 8:23 AM:Give the taco shop back. It's the right thing to do, not that we don't have too many of those around either. Really, I love my Mexican food, but maybe give it a face lift and like other posts suggested, add some other restaurants. How about Soup Plantation? Mimi's or that place with the big giant chocolate cake?

Eminent Domain wrote on Sep 17, 2008 8:27 AM:Are you kidding? I thought Eminent Domain was to be used only when the public as a whole would benefit. I don't think a used car lot is for the benefit of all.
I'm sickened by this!

Lets turn it into wrote on Sep 17, 2008 9:14 AM:a day laborer site, where workers can sit inside and wait for their emplorers to come in and pick them up?

One bad decision after another wrote on Sep 17, 2008 9:48 AM:Escondido is becoming the joke of north county! The mayor and council continue to provide students of public administration text book examples of poor planning and stupid decisions. Not only were the condos a bad idea, but then they allowed Ralph's grocery store to foil the WalMart deal only to close its doors a few months later. Now a used car lot on prime retail real estate along the freeway? Why weren't they at least courting the WalMart again? In this economy at least people are still shopping there even if they are upside down on the SUV they drive to get there! If the council and mayor really want those of us with high disposable incomes to spend it in the city they are making all the wrong decisions to accomplish that!

Bad decisions indeed wrote on Sep 17, 2008 10:37 AM:While agree with most of the points made by "One bad decision after another", I have to state that Wal-mart is definitely not needed in this town. As I have pointed out before, the Wal-mart in San Marcos is only 4 miles away from the former Ralph's site, and there is no way that any urban area needs that many of those monstrosities so close together. If you love Wal-mart so much, shop at the one in San Marcos and leave Esco Wal-mart free...we have enough problems.

Lew wrote on Sep 17, 2008 10:48 AM:At least CarMax isnt an eye sore like the rest of the used care lots across town. Has anyone ever seen the one in Kearny Mesa? Its actually a nice looking building.

Vertigo wrote on Sep 17, 2008 11:09 AM:Leave the lot empty for awhile. The city is almost built out. Why do our leaders always sell it so cheap? If they have no respect for the city how do they think it looks to others?

We need a red light district wrote on Sep 17, 2008 12:09 PM:It's OK - Lowe's will shut that store down because of low sales. We can make the building and land into a repo auto auction facility. CarMax will be next door and can sell the leftovers. We can add strip clubs, this can be our red light district. Add a couple of bars and a few liquor stores. Put a park in at the old Albertsons/Office Depot building for the homeless (to move them out of Grape Day Park). Move F Street from Grand to Mission (use eminent domain if they don't want to move). Keep the swap meet and leave the day laborers alone.
I think I'll run for City Council!!

Use it to wrote on Sep 17, 2008 12:16 PM:Drill for oil!

mmm YUM wrote on Sep 17, 2008 12:51 PM:I say let's put an In-N-Out Burger there! I think the freeway is lower on that side and INOB can get their sign approved! Gotta go, hungry now...

i know wrote on Sep 17, 2008 1:03 PM:lets just Escondido into a minature Tijuana and open markets and shops all over the place.. yeah that's the ticket.

pat wrote on Sep 17, 2008 1:23 PM:Kick the owners of El Mexicano Taco Shop out and build a car lot?

Tell me why this is legal or right!

Heres A Thought wrote on Sep 17, 2008 1:41 PM:How about yet another giant hispanic-themed giant grocery store? Maybe the council deems these Caja Grande (big box) stores... Lord knows I don't already get enough of those flyers in the mail!

realization wrote on Sep 17, 2008 2:06 PM:Do you people realize that city councils don't dictate what developments go where? The free market does. Some of you people are acting like the city council is sitting around a table pushing pins in a map deciding where car dealerships and taco shops go. It doesn't work that way. There's no discretionary action involved in a car dealership building a dealership in a commercial zone when it's a permitted use. There's no "bad decisions" about any of this. Welcome to a free market economy folks........

Abusing Eminent Domain wrote on Sep 17, 2008 2:11 PM:If the eminent domain issue isn't solved yet, are the taxpayers on the hook for this lawsuit or is the developer? Is the developer going to pay a fine for not following through with the plan? Can the city allow anything other than the intended use, considering they used eminent domain?
How much is this costing us, the taxpayer?

Cars over Education wrote on Sep 17, 2008 2:23 PM:The city OKs another used car lot but wouldn't work with High Tech High. Put the CarMax on the Ash & Washington property, they need a used car lot on the east side.

To realization wrote on Sep 17, 2008 2:31 PM:Funny - they found a way to use "discretionary action" when they wanted a Lowe's and condo project. In Escondido it's only a free economy when the council allows it.

to realization wrote on Sep 17, 2008 2:36 PM:City councils do in fact dictate where developments go via the passage of zoning laws. Read the article on how new zoning laws are intended to keep $.99 stores out of downtown Escondido, then tell me if you think this town operates in a free market. Furthermore, never in a truly free market would a government agency be allowed to abuse their eminent domain powers by benefiting one private business at the detriment of another.

to realization wrote on Sep 17, 2008 2:48 PM:To realization who wrote on Sep 17, 2008 2:06 PM,

Perhaps you need to read the article from Monday, ESCONDIDO: New zoning aims to keep discount stores out of downtown
Bolstered rules apply to pawn shops, thrift stores, 99-cent outlets... so, yes dear, the city is sitting around a table pushing pins. Moreso, they are actually considering drafting zoning laws! This goes beyond "free market."

Grocery Store wrote on Sep 17, 2008 3:17 PM:There are no groceries on Mission. There already exists at least a few used car lots on Mission within a mile from Lowes. From that neighborhood we lost Albertsons and Office Depot. We don't need ANOTHER used car lot in that neighborhood. We are hungry for groceries. Duh.

Grocery Store wrote on Sep 17, 2008 3:31 PM:How close is the nearest house to this empty lot?

To Realization wrote on Sep 17, 2008 3:35 PM:The council used "discretionary action" when they used eminent domain for this project. It's only a free market in Escondido when the council allows it.

John wrote on Sep 17, 2008 3:36 PM:Real restaurants don't like Escondido!

Its Unfortunate wrote on Sep 17, 2008 3:58 PM:It's unfortunate. But, our city of Escondido has become the spoiled child that just wants attention. It doesn't matter if it's good attention or bad...as long as we get attention.

Thanks alot for nothing - Escondido City Council!!!

Everyday, I think about the day I will get to move. It is something to look forward to. Escondido is in the hands of those that wish to make it into their very own "Pleasantville"...When they succeed, they will find they no longer like that either.

Karl wrote on Sep 17, 2008 4:51 PM:Grocery Store @ 3:17 PM:

The Albertsons and the Office Depot failed because of the location. People just don't go there for groceries. I guess the residential that is close is faithful to the 2 Vons and Stater Brothers.

Janet wrote on Sep 17, 2008 5:06 PM:Eminent domain to allow a car lot to go in? That's abuse! Sue, sue, sue. Use of eminent domain and redevelopment agencies is out of hand in San Diego. Rob the poor and give to the rich.

To Grocery Store wrote on Sep 17, 2008 5:07 PM:Not that I'd want a grocery store at that location - but there are homes just north over the 78 bridge. Hundreds of San Marcos customers could spend their money in Escondido. Also, another "quality" used car lot will take away from an already struggling Auto Park. But what do I know?

Tell me why wrote on Sep 17, 2008 5:18 PM:How come San Marcos gets the County Tax, IRS, great restaurants, Camping World and all the other high end tenants, while Escondido gets the motel, taco shops and used car dealers?

EsconGhetto Teen wrote on Sep 17, 2008 6:42 PM:Why take down what was once Boomers and replace it with a used car lot? What fun is there in Escondido for teens? The bowling alley is gone and now boomers is no longer there. Why do you think teens are getting into trouble and whatnot? There's nothing to do in this town if your a teen. Either go to the mall or go to the movie theatre. There's not if anything fun to do here. I hate how escondido has changed and well with gas prices its not cheap to go to poway for bowling or go to vista for go carts or video arcades. The only other thing in escondido is Club inferno and its nasty there. Its more about promoting your kid to go clubbing and I was very uncomfortable there when somebody groped me. this place is turning into slum! Im just saying that the crime rate with teens is up because theres nothing to do here anymore. And why put another used car lot there when theres allready used car lots along mission allready. Its not like everyone here is making enough to buy these cars. Were all suffering from being unemployed or lack of pay. Its rediculous and stupid of them to put a used car lot there. It seems as if the city doesnt think of the kids. There's only chuck E cheese and well im sure teens arent welcome there let alone who would want to go there at age 14. The city has taken so much away from kids and family outings that alot of people are wasting gas on going to other cities for family fun. There's NOTHING here for families in less your a movie freak and want to pay 10dollars a person to watch a 2 hour movie.

alfredo wrote on Sep 17, 2008 6:55 PM:I am sure that's a very good move on the part of th developer. By the time the first condo would be ready to occupy absolutely no potential buyer will be able to buy one at cost of construction. Even if the workers worked for minimum wages. On the other hand the market will be flooded with used cars. The prices will drop and former condo dwellers will try to buy them to live in. SUVs may stil have role to play here. Bushvilles are filling up fast already.

Christine wrote on Sep 17, 2008 7:38 PM:No, the Albertson's was hidden. How did anyone know it was there? We need a grocery MALL there. There are apartment's and more business in the area. They need supermarkets so when they do build another bunch of businesses in the area there is somewhere to shop???? Maybe?

Mariah wrote on Sep 17, 2008 9:25 PM:I agree with the need for a grocery store. When Albertson's closed, the nearest grocer became more than two miles away; even "Latino" markets are at least a mile away. I remember how convenient Big Bear, then Lucky's, then Albertson's made picking up quick foodstuffs so easy and cenvenient.

AL wrote on Sep 17, 2008 9:41 PM:I shopped at the Albertsons that is now closed on Mission. It was real convenient. When I asked the store manager why they were closing he told me one of the thier biggest problems was theivery- people walking out with full grocery carts of food, etc..

AL wrote on Sep 17, 2008 9:45 PM:Build a modern bowling alley with a decent food court and a Dave & Busters type arcade. People will come because there is not much for a family do in this town!
Escondido not need another freaking car lot! STUPID! STUPID! STUPID!

Hungry wrote on Sep 17, 2008 9:53 PM:There are nearby homes as well as it's on the way home to Escondido from both college campuses and the employers nearby as well as those of us Escondidoers spending our money at WalMart for San Marcos.

to the three stooges wrote on Sep 17, 2008 9:59 PM:Gallo and Abed supported all this mess; can we take other four years of them?
can Escondido survive another day?
WE NEED A NEED COUNCIL; ANYBODY MAKE MORE SENSE THAN GALLO AND ABED!!!

matt wrote on Sep 17, 2008 10:12 PM:eminent domain to build a lowes and some condos?? are you serious!?!? didnt this site used to have a family fun center?? wow...how sad to see the city being so greedy

To to grocery store wrote on Sep 18, 2008 7:14 AM:Just over the bridge of 78 is still Escondido. They can go east on Lincoln and around that way to El Norte to another Vons, or over 7 Oaks to yet another Vons. But I'm sure someone will say...that's a long walk!

I'll say, here you have your cart thieves!!

Speaking of cart thieves wrote on Sep 18, 2008 8:19 AM:I saw a city employee rounding up shopping carts. Don't we have enough work for our city employees that are going to retire on city funds? Isn't there private companies running around retrieving the carts at a cost to the grocery store? If they can enact an ordinance and ticket people for parking on the street, can't they enact an ordinance and ticket people stealing carts? That's a bigger problem then the parking issues.

I think they should wrote on Sep 18, 2008 1:05 PM:Bring back Boomers. I miss going there and was surprised one day to drive by and see it gone replaced by a huge mound of dirt.

Paved Paradise wrote on Sep 18, 2008 1:37 PM:They paved paradise to put up a parking lot.

Did anyone ever know how prophetic those lyrics would be/are?

Take away Chuck E. Cheese & Boomers (something for kids) and put in a used car lot.

The city is desperate for any revenues...even if that means contradicting themselves and bringing in business that provides few jobs but big sales revenue...no good for the average citizen...but good for city pay raises!!

Vote ALL (from city to federal) INCUMBENTS OUT!!!

Al wrote on Sep 18, 2008 7:11 PM:Bring back Boomers! WE need it in this town. I went there often.

Mariah wrote on Sep 18, 2008 7:44 PM:When I first moved to the Lincoln Ave. area, Boomers was the best "date" place, and Chuck E Cheese was the best place to take my nieces and nephews, for a bit of fun when their parents were dying of cancer. And for great birthday parties and yes, great pizza. I can't believe they are taking any bit of fun away for a totally useless business that will go under within a year.

EscondidoTTTer wrote on Sep 26, 2008 1:05 PM:I love it. Another used car lot in Escondido. Put another low end mexican food establishment next to the car lot and you have the essense of Escondido. Nice job everyone. How about another swapmeet where the Paramont was supposed to be built?

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