In the late 1980s, the Redevelopment Agency began talks with local auto dealers about the possibility of creating a modern Auto Center in Merced. At that time, some of the dealers were considering out-of-town locations to replace their older facilities downtown. In 1987, the Agency and The Merced Auto Center, Inc. agreed to the development of the Auto Center, located along Highway 99, west of V Street. The location was partly vacant, with part of it occupied by an old industrial plant, and part by other small businesses. The Agency agreed to buy the properties, relocate the tenants, and re-sell the property to the auto dealers who had joined together as The Merced Auto Center. The auto dealers agreed to construct high quality dealerships at their expense and build public improvements, including street, water and sewer lines. The Auto Center houses seven dealerships, with a total of fifteen makes of cars represented. Car sales in Merced have significantly increased with the project. The total Redevelopment Agency investment in the project is about $2.54 million for land, relocations, and public improvement reimbursements. This investment is recouped through new property and sales taxes.
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