A Hybrid Station of a Different Sort

A California gas station straddles a public-private line with an oil company operating the pumps but the city owning the property.

April 04, 2018

PLACENTIA, Calif. – At the corner of South Placentia and West Crowther in Placentia, Calif., the fuel-only gas station appears to be like any other—dispensing fuel via self-service pumps. But this station sits on land owned by the city of Placentia, which partnered with Galaxy Oil Co. to run the pumps, the Orange County Register reports.

Drivers who fill up help fund the city’s police department, parks and other services, according to city officials. While public-private ventures aren’t new, the partnerships are generally for redevelopment of blighted areas or toll roads—generally not for profit-making businesses.

The city had purchased several parcels of land needed for a railroad underpass project, but when that project was completed, the city had to figure out what to do with the unused lots. A suggestion from a former member of the city’s economic development committee led to the partnership with Galaxy.

Galaxy, which built the station, leases the property from the city for $25,000 annually, plus 50% of the station’s gross receipts. Currently, the oil company has a 10-year agreement with the city. Galaxy maintains the station as well. Galaxy CEO Jim Caiopoulos said he actively considers “properties that are not readily developable, but that we can come in and monetize on behalf of the property owner.” Other cities, such as Santa Ana and Montclair, are also interested in a similar private/public venture.

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