Fenty Administration Shuts Down Three Used Car Dealerships

Dealerships owe thousands in fines and have been the backdrops of illicit activities

Mayor Adrian M. Fenty today shut down three Northeast used car dealerships that owe thousands of dollars in fines after being stripped of their dealership registration status more than four months ago.

Fenty, joined by Acting Attorney General Peter J. Nickles, Metropolitan Police Department (MPD) Assistant Chief Diane Groomes, Department of Consumer and Regulatory Affairs (DCRA) Director Linda K. Argo, Department of Public Works (DPW) Director William Howland and Department of Motor Vehicles (DMV) Director Lucinda Babers announced through a Mayoral Order the immediate suspension of the business licenses for:
•    Excellence Motors Inc., 1000 Bladensburg Rd, NE
•    Solomon Motors, 1036 Bladensburg Rd, NE
•    Star Auto Sales Inc., 2919 Rhode Island Ave, NE

The Department of Motor Vehicles had revoked the dealership registrations of the three businesses in June after they failed to pay a combined $30,700 in fines for not maintaining proper insurance on vehicles using the DMV dealer tags issued to that dealership.

Despite multiple opportunities to come into compliance, the dealerships’ owners failed to appear at hearings or meet the terms of a negotiated payment plan with the District. The suspensions are effective immediately. Fenty said the City will move to revoke their licenses indefinitely.

“We cannot allow these businesses to continue to operate one more day,” said Mayor Fenty. “They have snubbed their nose at City officials and operated illegally for months. We will not tolerate this activity, which puts the residents of the District of Columbia at risk.”

Mayor Fenty also announced an immediate citywide sweep of more than 100 used car dealerships across four main corridors in three Wards including Georgia Avenue, Bladensburg Road, Benning Road and Rhode Island Avenue. Over the next two weeks, City officials from ten District agencies will investigate each location for environmental hazards, business and tax records, insurance and registration documents, and condition of properties.

Many of the targeted locations, which were also served with notices today, have been the scene of violent crime, illegal activity and questionable business practices, according to City records. There are more than 200 used car dealerships in the District.

“We want to know that these businesses are operating legally and maintaining their properties,” Nickles said. “If they are, they should not be concerned. If they are not operating legally, then we will use all of our resources to ensure they are no longer doing business in the District of Columbia.”

The three businesses closed today will have the opportunity to request a hearing on the suspension and revocation with the City’s Office of Administrative Hearings. The dealerships will be required to remove all of their motor vehicles from these properties by November 8, 2008, or the city will tow them and possibly seek criminal prosecution.

The administration is also considering proposing legislation and zoning amendments that would limit the number and size of dealerships in the city.