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Placentia’s gas station partnership has made nearly $400,000 for city programs

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Since opening about four years ago, a gas station on city property has earned Placentia several hundred thousand dollars that goes toward police, fire, parks and other city services.

While the recent high gas prices have been frustrating for drivers, some of the cost to fill up at the Best 4 Less 76 station at South Placentia and West Crowther avenues goes back into the programs and services Placentia provides its residents.

The station opened in fall 2017 on a piece of land the city had leftover from a railroad underpass project. City officials partnered with Galaxy Oil, which built and operates the automated gas station (no convenience store or on-site employees); in exchange for providing the land, Placentia gets a lease payment and a cut of the gas sales revenue.

Business dipped early in the pandemic when people were driving significantly less, but revenue is now climbing back toward pre-pandemic levels, Placentia City Administrator Damien Arrula said. In its first full fiscal year, the station earned more than $100,000 for the city, and since October 2017 it has brought in about $397,000, according to data the city provided.

Placentia’s public-private partnership gas station on the corner of S. Placentia and W. Crowther Avenues in Placentia, CA, on Friday, March 25, 2022. The city owns the property and has a contract with a petroleum company that runs the gas station; the city gets a cut of the profits. (Photo by Jeff Gritchen, Orange County Register/SCNG)

Placentia’s public-private partnership gas station on the corner of S. Placentia and W. Crowther Avenues in Placentia, CA, on Friday, March 25, 2022. The city owns the property and has a contract with a petroleum company that runs the gas station; the city gets a cut of the profits. (Photo by Jeff Gritchen, Orange County Register/SCNG)

Placentia’s public-private partnership gas station on the corner of S. Placentia and W. Crowther Avenues in Placentia, CA, on Friday, March 25, 2022. The city owns the property and has a contract with a petroleum company that runs the gas station; the city gets a cut of the profits. (Photo by Jeff Gritchen, Orange County Register/SCNG)

Placentia’s public-private partnership gas station on the corner of S. Placentia and W. Crowther Avenues in Placentia, CA, on Friday, March 25, 2022. The city owns the property and has a contract with a petroleum company that runs the gas station; the city gets a cut of the profits. (Photo by Jeff Gritchen, Orange County Register/SCNG)

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The Best 4 Less station’s pricing is competitive with other stations in town, Arrula said, adding that although a Sam’s Club filling station across the road is a bit cheaper, it usually has a long wait.

As of Friday, the per-gallon cost of regular gasoline at Best for Less was $5.97 for drivers paying in cash and $6.09 for people using a credit card; the website Gas Buddy listed prices at nearby stations ranging from about $5.49 to $6.19.

And for Galaxy Oil, the partnership “has worked out well. The volume there is increasing,” CEO James Caiopoulos said. “People are finally realizing that every time they purchase fuel there, they are actually benefiting the community.”

The Placentia station, the company’s first city partnership, has drawn interest from other cities – there are plans for a project in Adelanto in San Bernardino County, and company officials are talking with Fullerton, where Galaxy is headquartered, Caiopoulos said.

Arrula said now that people’s driving habits are returning to normal, the city may revive a “pump up Placentia” marketing campaign to encourage local folks to fill up at the city station. Officials also are considering a partnership that would bring an electric vehicle charging station to the property.

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