The Virginian-Pilot
                            THE VIRGINIAN-PILOT  
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Wednesday, September 13, 1995          TAG: 9509130522
SECTION: BUSINESS                 PAGE: D1   EDITION: FINAL 
SOURCE: BY ALEX MARSHALL, STAFF WRITER 
DATELINE: NORFOLK                            LENGTH: Short :   38 lines

NORFOLK CAR DEALERSHIP MAY MOVE TO CHESAPEAKE CONOLY PHILLIPS LINCOLN-MERCURY IS ONE OF THE CITY'S LARGEST DEALERSHIPS.

Councilman G. Conoly Phillips has applied to move his car dealership, Conoly Phillips Lincoln-Mercury, one of the largest in the city, to Chesapeake.

Phillips wants to move the dealership to South Military Highway and Georgetown Boulevard near the Greenbrier area. Phillips said that the decision isn't final but that he is seeking a use permit for the site.

If the Phillips dealership leaves Norfolk, the city would lose property taxes, sales taxes and business taxes, as well as jobs.

Phillips said Ford motor company is pressuring him to move the dealership to Chesapeake for business reasons. He said he would prefer to keep the dealership, now at 3525 N. Military Highway, in Norfolk.

``It's not my decision, it's theirs,'' Phillips said.

But the councilman also said that no final decision has been made. In 1987, Phillips announced he was moving the dealership to Chesapeake, only to have the move not materialize. Phillips said he has been talking with Ford about such a move since 1983.

``We are still in negotiation mode,'' Phillips said. ``If I were to come to an agreement with Ford, I would move.''

The news of Phillips' possible move was revealed at the end of Tuesday's council meeting. Councilman Paul R. Riddick, who has often tangled with Phillips on city policy, raised the subject. Riddick said he had heard a rumor that Phillips was moving the dealership. He urged Phillips to keep it in Norfolk.

Phillips said the decision to move could come within ``a month or two.'' by CNB