San Juan Capistrano offers $5 Million incentive to dealership

[XDCX]

I've started a number of threads about cities that have offered tax incentives and capital loans to keep dealerships from moving or closing, but the recent deal the city of San Juan Capistrano offered the Tuttle-Click group is beyond belief.

The City Council voted 4 - 1 to offer the Tuttle-Click dealer group $5 Million in tax incentives to keep their Capistrano Ford dealership open when the expansion of a Costco store will force the dealership to find a new location. Capistrano Ford will relocate to the vacant Nissan and Chrysler dealerships that boarder I-5.

Here's a link to the news report - click here

As I see it, the City Council isn't spending $5 Million to attract new business, they're spending $5 Million to make sure one doesn't move away.

I'm very much "pro-dealership" but I wonder how a tax incentive like this is fair to the neighboring Ford dealers who will have to compete with Capistrano Ford. It's just like the OEM's two-tier pricing programs - it's hard to compete when the playing field is not level.