Marina and Mercedes-Benz work on a new plan after previous agreement was never finalized.

Mercedes-Benz of Monterey plans to move into Marina’s Dunes development in the former Fort Ord, gaining Marina City Council’s approval to help with construction costs. That agreement got the green light from the council in May, with the stipulation that Unstoppable Automotive Group, the owner of the dealership, break ground by Jan. 1.

It’s now more than halfway through January, and the spot, located at the corner of Divarty Street and 1st Avenue, remains a dirt lot and staging area for construction equipment for the nearby housing development.

The sales tax revenue sharing agreement has yet to be finalized. Marina City Manager Layne Long says the dealership has not submitted a building permit. “We are continuing to meet with them and they are getting closer to submitting their application,” he says, adding that an updated construction schedule and incentive agreement will have to come back to the council once the development plans are finalized.

An inquiry to Unstoppable Automotive Group was not returned as of press time.

Unstoppable Automotive Group plans to build a 60,000-square-foot dealership, estimating it would start with more than 80 employees. Land acquisition and construction costs are expected to top $40 million.

Under the agreement approved by the council in May, Marina would rebate half of the city’s 1-percent local share of sales tax revenue generated by the dealership to Unstoppable Automotive Group, for up to five years. The city expects to receive $6.4 million in tax revenue over the five years, according to a report by Long.

Monterey County Clerk-Recorder documents show Marina Community Partners sold the property to Marina Auto Properties, a subsidiary of Unstoppable Automotive Group, on Dec. 19 for $5.3 million.

Mercedes-Benz of Monterey is currently located at 498 Fremont St. in Monterey. It’s one of the top sales tax generators in the city, according to city reports.

The business is billed as one of the first Mercedes-Benz dealerships to be established in the U.S., opening in 1957. Temecula-based Unstoppable Automotive Group purchased it in 2023.