AGENCY OKS TERMS WITH DEVELOPER TOWN CENTER ADVANCES.

Byline: Naush Boghossian Staff Writer

GLENDALE - The city's redevelopment agency approved Tuesday the business terms of the deal with Town Center developer Rick Caruso, with three of the members agreeing that the city would financially benefit from the agreement.

Agency members Gus Gomez, Rafi Manoukian and Dave Weaver voted to support the agreement that includes transferring to Caruso ownership of 8.5 acres of the 15.5-acre site, in exchange for the city receiving 50 percent of the annual cash flow beyond Caruso's return on investment.

Frank Quintero dissented after urging city officials to consider leasing the land to Caruso, and Bob Yousefian abstained, choosing to make a decision after the city unveils the final business terms.

``I'm convinced in the end that the arrangement that's before us would be acceptable and would be proper for the community,'' said agency member Gus Gomez. ``I think the city would recoup its investment and the project would provide a number of jobs for the community. I think this deal works for the city.''

City staff will convert the approved business terms into a so-called disposition and development agreement - the formal, legal document outlining the specifics of the business deal with Caruso that the City Council will consider for approval on March 30.

Caruso described the deal for the $200 million Town Center development as a partnership.

He said the city could get paid back its $34.4 million land investment in 10 years just based on the projected yearly $3.2 million in property and sales tax revenue alone.

``In the worst case scenario if there's never a dime of profit, the $3 million each year in tax revenues pays them back within 10 years - so there's very little risk to the city,'' said Caruso.

The development is planned between Brand Boulevard and Central Avenue, south of the Glendale Galleria.

According to the agreement, if Caruso decides to sell the development within seven years, the city will participate in 50 percent of the profit, but will not share in the annual profits under the new developer.

Caruso also agreed that union labor will constitute 90 percent of working trades, janitors will unionize on the site and he will use Glendale's Verdugo Job Center to recruit workers for the project.

The city will also pay $4 million for Caruso to build a park and $8.7 million for public improvements on the site including upgrading streets, sidewalks and curbs - work that city officials said would cost Caruso double what they're paying him.

Naush Boghossian, [phone]

naush.boghossian(at)dailynews.com

NAME THAT PROJECT

GLENDALE - Rick Caruso, developer of the Town Center shopping and entertainment complex, announced a citywide contest Tuesday to formally name the downtown Glendale project.

The winner will receive a $1,000 shopping spree at any Caruso Affiliated Holdings center and another $1,000 will be donated to a local school.

``We have worked hand-in-hand with the community for the past two years to plan and design the Town Center, so we thought a logical next step was to invite the community to name it,'' Caruso said. ``We are looking for a name with creativity and flair that will evoke the spirit of Glendale.''

The winning name will be announced March 30 at a joint City Council and Redevelopment Agency meeting.

Only Glendale residents may participate in the contest. City employees and associates of Caruso Affiliated cannot enter.

Proposed names may be sent by mail to Caruso Affiliated Holdings, 101 The Grove Drive, Los Angeles, CA 90036 or via e-mail to names(at)glendaletowncenter.com. All entries must have a name, address and phone number and be postmarked or e-mailed by Friday, March 12.

CAPTION(S):

box

Box:

NAME THAT PROJECT (see text)