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The Palmdale Auto Mall v. the Lancaster Auto Mall
Lancaster and the City of Palmdale, California (Palmdale)
are located in the Antelope Valley of California, which is 75
miles north of Los Angeles. The cities are only 5 miles apart.
During the period in question, Lancaster was engaged in an
auto mall development competition with Palmdale. Prior to
October 1990, Lancaster had invested approximately $10 million
into the development of an auto mall. Previously, Lancaster lost
a competition for a regional shopping center to Palmdale.
Lancaster felt that it needed a domestic auto dealer as an
anchor in its auto mall, and it wanted Mr. Johnson's motor
vehicle dealerships to relocate to the Lancaster Auto Mall.
On February 14, 1989, Mr. Johnson signed a Disposition and
Development Agreement (DDA) concerning a planned relocation to
the Palmdale Auto Mall located in Palmdale.3
On July 19, 1989, the LRA made a proposal to Mr. Johnson
concerning relocating his motor vehicle dealerships to the
Lancaster Auto Mall. In a letter dated July 26, 1989, Mr.
Johnson declined this offer and indicated he was going to move
his motor vehicle dealerships to the Palmdale Auto Mall.
3 It is unclear from the record whether Mr. Johnson would
be relocating his Ford dealership, his Lincoln-Mercury
dealership, or both dealerships; however, it is clear that Mr.
Johnson thought he would be moving both motor vehicle
dealerships.
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