A groundbreaking ceremony Friday marked the beginning of construction for the new 35,000-square-foot MINI of Universal City dealership at 4338 Lankershim Blvd.
The three-story development will replace the current MINI dealer, which is a few storefronts down the street, and house 200 new and used vehicles.
A showroom and a maintenance shop on the second floor are also part of the project, said Dennis Lin, President of MINI of Universal City.
About 25 people will be employed at the new $12 million dealership when construction finishes in about 12 months, he said.
"This will increase the creation of new jobs and sales revenue in regards to helping the economy of the area and also will help in the beautification of Lankershim Blvd," Lin said in a statement.
Mayor Antonio Villairagosa was on hand for groundbreaking and commended MINI as well as his staff for working closely together on the project.
"The result is this new facility that's going to generate sales tax, construction jobs and permanent jobs," the mayor said.
In July, Villarigosa eliminated the in . The tax had driven dozens of car dealerships, jobs and sales tax revenue out of LA and into neighboring cities.