BIG DEAL FOR VALLEY NEIMAN MARCUS JOINS $300 MILLION TOPANGA MALL PROJECT.

Byline: Candice Choi and Brent Hopkins Staff Writers

CANOGA PARK - In one of the biggest privately funded projects ever in the San Fernando Valley, Neiman Marcus will open a store at Westfield Shoppingtown Topanga as part of a $300 million expansion that will alter the area's retail landscape, officials said Tuesday.

The expansion by mall owner The Westfield Group also includes another anchor store not yet identified, more than 100 new specialty retail shops, restaurants, a cafe-style food pavilion and three covered parking structures.

The project will create a behemoth shopping center that will span 1.6 million square feet - one-third of it new. When complete, the project is expected to drive more than $620 million in annual sales and could create as many as 1,500 new jobs.

At some point it will likely connect with Westfield Shoppingtown Promenade a few blocks away, said Richard Green, vice chairman of Westfield's U.S. operations.

``It's a logical thing to have easy access to both properties,'' Green said.

The plan calls for:

--Nordstrom to move into a separate three-story building that will be built on the southeast corner of the property. Neiman Marcus will take the current Nordstrom space along Topanga Canyon Boulevard.

--An additional anchor tenant will move into a two- or three-story building that will be built at the northeast corner of the property. A parking structure will separate the two buildings.

--The former Montgomery Ward space will expand out toward Owensmouth Avenue and will house a new food pavilion, sit-down restaurants and specialty retail shops.

--The area from Neiman Marcus through the food pavilion will be turned into an atrium area called The Canyon.

--The current food court will be renovated to incorporate several new specialty shops.

--Three new parking structures will bring the total number of spaces from 4,000 to 6,500.

Bruce Ackerman, president of the Economic Alliance of the San Fernando Valley, called it one of the largest development projects in the Valley's history, outpacing even Rick Caruso's massive Americana at Brand in Glendale, which sports a bill of $264 million.

``It'll generate more jobs, increase the attractiveness of the area as a retail center and complement what they've done with the Promenade. That area was just begging for more work.''

Bob Scott, executive vice chairman of the Economic Alliance, said the expansion dwarfs other recent retail developments.

``A few years ago, we had projects like the renovation of the Panorama and Fallbrook malls, so this would be the second lap of mega-malls here in the San Fernando Valley.''

Until Tuesday's announcement, redevelopment plans centered around the relocation of Nordstrom into the larger three-level space, the first major change for the store in 20 years.

Construction is expected to begin on the expansion in the spring, for an anticipated fall 2006 opening. Neiman Marcus expects to open in the spring of 2008.

Officials of the company did not return calls seeking comment.

Shoppers plan to embrace the change.

``It's going to make it a lot more convenient than going over the hill,'' said Rachael Bergen, a Sherman Oaks resident who often goes to the Beverly Center for her shopping. Bergen said she'd also like to see more luxury retailers in the Valley. Aside from Nordstrom, she said, her options are pretty much limited to Bloomingdale's in Sherman Oaks.

Westfield executives couldn't agree more.

``We're basically taking care of that demand we see. This is a catalyst that's going to improve the entire area,'' Green said, adding that Neiman Marcus and Nordstrom could help bring in a ``whole host of new tenants.''

Though Dallas-based Neiman Marcus has a limited footprint in Southern California, the Valley is ripe for the store's opening, said Jack Kyser, chief economist with the Los Angeles County Economic Development Corp.

``This is going to give them access to a huge customer base, most importantly in the West Valley and Calabasas. They'll be tapping into the customer base in Ventura County as well,'' Kyser said.

``That section of the Valley would get a little extra panache. It'll bring in a clientele that would have previously left the area for their purchases,'' said Dan Blake, director of the San Fernando Valley Economic Research Center and a professor of economics at California State University, Northridge.

While Neiman Marcus and Nordstrom will complement each other, Kyser said ``it's the other stores that could feel the impact.''

In particular, Macy's and Robinsons-May will likely step up their customer-service efforts to stay competitive. Ultimately, Kyser said, the finished product could deal a huge blow to The Oaks in Thousand Oaks as well.

The only missing piece of the puzzle now is which anchor tenant will round out Westfield Shoppingtown Topanga. Green said he expects to make a formal announcement within the next two months.

``Who's left? Anything's up for grabs, but if I had to put money on it I'd bet on Bloomingdale's,'' Kyser said.

Other possibilities suggested over the past year include Swedish home- goods chain Ikea, J.C. Penney and Lord & Taylor.

Gordon Murley, president of the Woodland Hills Homeowners Association, said he believed the two centers should be connected.

``It doesn't really have the warm, let's stroll around and let's enjoy this place feel,'' he said.

Hopes of bringing Neiman Marcus to the center were sparked last year when Westfield embarked on an unusual courtship of the tony department store.

Westfield put up signs encouraging shoppers to sign petitions asking Neiman Marcus to open a second Los Angeles store at Topanga and stocked its customer service desks and store with comment cards begging the store to come.

Neiman Marcus and Westfield executives began negotiations about six months ago, Green said. ``What brought them to the table was the opportunity and investment they saw here.''

In particular, Green said, Nordstrom's expansion plans demonstrated the market demand in the area.

With the median price of homes recently reaching about $500,000 in his district, Councilman Dennis Zine said it's no surprise Neiman Marcus is coming to town.

``It's more expensive to live here, and people want the convenience of the high-end stores to match.''

Candice Choi, [phone]

candice.choi(at)dailynews.com

CAPTION(S):

photo, map

Photo:

This rendering shows a newly renovated and expanded Westfield Shoppingtown Topanga, a $300 million project.

Map:

NEIMAN MARCUS COMING TO WEST VALLEY

SOURCE: The Westfield Group

Gregg Miller/Staff Artist