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AUTOMOBILE DEALERSHIPS - IN THE STUDY AREA
DOWNTOWN CAR DEALERSHIPS SURVEY
On July 27, 1973, questionnaires teen new and used car dealerships
were mailed to seven-
located in the central area
extending from 35th Street to 120th Street and from the River to 104th Avenue. The purpose of the questionnaire was to assess the problems, plans and opinions of these low intensive land users, with a view to up-dating and evaluating the policies and objectives of Chapter X of the General Plan.
A short time after the questionnaires had been sent, the managers of the firms were contacted by telephone to discuss any difficulties with the form, and were, at this time, verbally encouraged to respond.
Of the seventeen dealerships contacted, two were discovered to be under the same management and were subsequently treated as one business. Though two of the firms considered had recently moved out of the study area, they responded nonetheless.
Of the sixteen possible replies, eight (507) responded.
* See Appendix A ** See Appendix B
ANALYSIS
In accordance with the promise of confidential treatment of the questionnaires, the dealerships shall remain anonymous.
A.
Background Information
The questionnaire revealed that dealerships have been established in the central area over a range of from two to twenty-seven years, the average age being about thirteen years. Expansion of the businesses has occurred through the acquisition of additional lots in the same vicinity, so that in almost all cases, all functions - sales, servicing, and parts supplies are performed within the central area. The size of the establishments varies from 5,000 square feet to almost 300,000 square feat.
B. Space Occupied and Required
Indications are that 75% of the automobile firms are dissatisfied with their present areas and/or are expecting a need for expansion within the next ten years. Their general space requirements are listed below; present square footages and future estimates are tabled in Appendix C.
Interior space refers to area utilized for showrooms, offices, and parts and servicing departments; while exterior space relates to the number of parking spaces required for display purposes and for staff and customer parking.
Future Space Requirements
Responses
- both interior and exterior space needed
2
- interior space only
1
- exterior parking space only
2
- no increase in space required
2
- a reduction in space required
1
No correlation exists between the type and amount of space required and the size of establishment.
C. Consolidation of Functions - number of firms occupying more than one location
4
- number of firms desiring consolidation of functions
4
Apparently, having different functions of a firm located on different sites is a definite disadvantage to a dealership. Reasons given by the 4 firms (3 large, 1 small) for desiring consolidation were:
a.
management and the entire operation would function more efficiently
b.
fewer employees would be needed
c.
the costly movement of automobiles could be avoided.
Three of the four firms identified the need for consolidation as a reason to consider moving from their present location.
D. Problems Encountered in the Central Area
Considering the low intensive nature of their business, it is not surprising that car dealerships face problems with being located in Central Edmonton. Grievances mentioned were:
Responses
Reasons
- limited space; parking problems
4
Land for expansion is expensive and not readily available. High demand for few parking spaces.
- high taxes
2
Taxes become utterly unreasonable when such large tracts of land are required. The shift in emphasis from taxing improvements to taxing land has hurt the low intensive automobile firms.
- poor access
1
A unique problem to this specific dealership
- no major problems encountered
1
These problems are causing enough concern that 75% of the businesses have contemplated moving.
.Locational Preferences
Under the assumption that all needs could be met in either area, dealerships were asked to choose between the central region and the fringe area as desirable future sites. Results were as follows: A. Center
3 responses
Reasons: - for continuity from the past - retention of present customers
b.
fringe
2 responses
reasons: - lower taxes - availability of land - easy access
c.
no preference
I
response
d.
no response
1
response
Regardless of the location in the city, future sites would have to satisfy most of the following criteria: -
easy accessibility - on or close to a major artery increased space good display areas reasonable taxes proximity to markets eg. schools, large apartment complexes and business services - presence of other dealerships in the area
F. Automobile Dealership Center
The questionnaire investigated the attitude of firms towards the development of an automobile dealership center and its possible location along the vacated railway track area once the CNR and CPR have relocated their operations.
Questioned as to whether or not they believed being part of an automobile center would be advantageous to their firm, the businesses responded very favourably.
Responses
Yes
No preference
Number
Reasons:
6
- people like variety less advertising would be required - small firms would benefit from the customers attracted by the larger firms
1
- this firm was a specialty dealership with an exclusive market
1
Other questions asked concerning the center were: 1. Would you be particular about which other dealerships were in the center? Responses
Number
Yes
1
No
5
No response
- G.M. and Chrysler dealerships only - Presumably it is felt that any type of dealership will draw potential customers, and thus be an asset to the center
2
2- Should therebe a maximum number of firms in the Center? Responses Yes
Number 3
(maximums of 4 3 a 4)
No preference
1
- but no duplication
No response
2
No
3. Should related firms be included in the Center?
Responses
Number
Yes
7
No response.
1
COMMENTS:
- people are attracted by variety - automobile-related firms would be readily accessible to satisfy the needs of the dealerships themselves (for reconditioning, re-upholstery, etc.) - recreational vehicles were suggested as a logical addition to the center - surprisingly, one business believes that related firms should be complimentary services only - banks, coffee shops - no competitive enterprises.
4.
Would your firm consider moving to the CNR area (eg. adjacent to Crosstown "Motor City")?
Responses
Number
Yes
6
No response
1
No preference
1
The CNR area is unique in being able to offer adequate space, good accessibility along 104th Avenue, an established firm with a good clientele as a neighbour - and all at a central location very close to the high rise and downtown markets. Such a situation promises to be very profitable, and the car dealerships appear eager to take advantage of it.
SUMMARY
The question which revealed that six of the eight dealerships have contemplated moving indicates that low intensive car establishments are facing difficulties with being located in the central area.
Causing most concern is, apparently, lack of space - lack of space for expansion, for consolidation and for improved display and customer parking facilities. And yet, one dealer remarked that even at present square footages, taxes make parking lots "impossibly expensive". A final factor - poor. accessibility was also given as a major drawback to a downtown location.
It seems that many dealerships would prefer to remain in the central area if their needs could be adequately met - their needs being ample space, good accessibility, reasonable taxes, a propinquity of other dealers, and a ready market. Because the railway area (For example, adjacent to Crosstown) is unique in being able to satisfy most of these needs in a central location, 75% of the firms claimed that they would seriously consider moving to such a site.
Reception to the idea of developing a car dealership center was also very favourable, though opinion tended to differ as to the nature and number of firms to be included. The general attitude was that customers are drawn by variety, and that a dealership center would open up a larger market to each firm with no increase and perhaps even a decrease in advertising costs.
Smaller dealers especially felt they could capitalize on consumers attracted by the large, well known establishments.
Including related firms in the center also met with a great deal of approval, not only because they too would attract more customers, but because convenient servicing would be available for the dealerships themselves.
In addition, recreational vehicle
firms, banks and restaurants were suggested as possible participants in the center.
June, 1973
Appendix A DOWNTOWN CAR DEALERSHIPS QUESTIONNAIRE
A. Name of Dealership:
B. Please mark with an "X" the functions your establishment performs, and the location(s) of each: Function - new car sales - used car sales - service - parts - other (please specify
Location (s)
El
I
Li
C. How long have you been at the above location(s)?
D. Present space Occupied: 1. Please give the number of square feet presently being occupied for each of the following functions (if applicable) for each location: Function
Area
Location (s)
- showroom - office space - parts - service other (please specify) TOTAL
Sq. Ft.
2.
Please state the number of outdoor parking spaces presently being utilized for each of the following functions (if applicable) for each location: Function Area Location (s) - display - auto storage - truck storage - parking (staff) - parking (customer) - Other (please specify)
spaces
TOTAL E. Future space requirements:
Please give a rough estimate of what amount of space your firm is expected to need in five to ten years: - total interior area for establishment: - total exterior area for establishment:
sq. ft. parking spaces
F. If your firm presently occupies more than one location, would you prefer to have all functions of your establishment consolidated on one site? Yes I I
No Ti
Please explain:
G. Have you encountered any special difficulties by being located in the downtown area? No
L_J
Yes
f I
Please specify:
3
H. Has your firm ever contemplated moving? Yes I i
No
If "yes", please give reasons why moving from your present location has been considered. 1 lack of space poor parking facilities poor access high taxes desire to consolidate all functions on one site Other - Please specify I. If your firm decided to move to a new location, which area of the city would be preferred? (assume that your needs could be met in each area). Center
Reasons:
Fringe
Reasons:
J. If your firm decided to look for a new location, what. characteristicS would be desired in a new site?
K. Do you believe that being located in an automobile dealership center would be advantageous to your firm? Yes n No I I Please explain:
4
L. Would you be particular about which other car dealerships were also in the center: No E3 Yes C] If "yes" please describe the type of dealerships you would prefer.
M. Should there be a maximum number of dealerships in the If so, what should the maximum be? center?
N. Do you believe that the center should be restricted to car No ri dealerships only? Yes LI Could related firms (eq. car washes, transmission specialists etc.) be included to the advantage of the center? YesLJ N0Q Comments:
0. If the CNR and CPR lines were relocated would your firm consider moving to the railway area (eq. adjacent to Crosstown Motor City?) No ri Yes n If "no", please give reasons:
Thank you so much for your time. If you have any questions or further comments, please contact: Patricia Steen, Redevelopment and Rehabilitation City Planning Department, Seventh Floor, City Hall (425-3107)
APPENDIX B
NEW AND USED CAR DEALERSHIPS IN THE STUDY AREA
1. Anglo-Canadian Motorsport Center
10120 - 103 Ave.
2. Automart
10252 - 109 St.
3. Capri Auto Sales
11656 Jasper Ave.
L1.
Jasper Avenue Consignment Auto Sales
11405 Jasper Ave.
Convertible Auto Sales (1969) Ltd.
11658 Jasper Ave.
Now located at -
10635 - 127 Ave.
5. Credit City Car Sales
11424 Jasper Ave.
6. Crosstown "Motor City"
104 Ave. and 120 St.
7. Devonian Motors
Jasper Ave. & 114 St.
8.
Edmonton Motors Ltd.
11445 Jasper Ave.
9.
Edmonton Nothing Over $999
101 St. and 104 Ave.
10. G. B. Motors Ltd.
10315 - 109 St..
11. Healy Ford Center
10620 Jasper Ave.
1 9.
107 St. and Jasper Ave.
Jenner Pontiac Buick Ltd.
13. Miller Motors Ltd.
10019 - 104 St.
14. New Car Trade Center
10184 - 98 St.
15. Toyota Edmonton Sales
11822 Jasper Ave.
Now located at 16. Waterloo Mercury Sales Ltd.
Kingsway and 109 St. Jasper Ave. and 107 St.
APPENDIX C Space Occupied and Required
Dealership Number
Present Space Occupied Interior * (sq. Ft.)
I 2 3 4 5 6 7
8.
5,000 20,000 24,000 27,200 66,287 83,993 N/A
N/A
Exterior * (Parking Spaces) 12 65 90 620 501 2 213,382 (ft ) N/A no increase desired N/A more space required for interior
Future Space Requirements Interior (Sq. Ft.)
10,000 20,000 24,000 45,000 66,287 40,000 N/A
N/A
Exterior (Parking Spaces)
35 65 100 700 651 2 200,000 (ft ) N/A
N/A
* (nterior space refers to the number of square feet occupied with showrooms, offices, parts and servicing departments. * Exterior space refers to the number of parking spaces required for display and for staff and customer parking.