CITY NIXES LOAN FOR NEW STORE DEVELOPER WAS LURING URBAN OUTFITTERS SHOP.

Byline: Susan Abram Staff Writer

BURBANK - In a blow to downtown revitalization efforts, the City Council has denied a plan to bring in a popular retailer to San Fernando Boulevard.

Council members balked at granting a $742,500 loan that would have brought Urban Outfitters, the trendy clothing and home furnishings shop, to the old Newberry's site at 328 San Fernando Blvd.

The 20,000-square-foot building that once housed a five-and-dime shop has been vacant since 1996.

``It's sad because that building has been there a long time, and Urban Outfitters could have changed that area,'' said Bill Tucker, president of Tucker Investments Inc., which was seeking the loan to remodel the space. ``It would have been the anchor that would have brought in other retailers.''

Under the city's newly developed Downtown Tenant Assistance Program, which assists quality retailers to the area, Tucker Investments was requesting $742,500 of a possible $1.5 million loan for the project.

Tucker said he had been working on the proposal for six months and was one of the first to come forward to work with the city's redevelopment program. Because of Tuesday's decision, there are no further plans to pursue a deal, he said.

``Unfortunately, the message the city is sending out is that they really are not interested in allocating that money,'' he said. ``I hope one day they won't look back on this and say they could have had a great retailer.''

City officials have listed filling the Newberry's site as the number one priority in downtown revitalization.

Council members Stacey Murphy and Dave Golonski, who voted against the Urban Outfitters proposal, said the loan was excessive just for one store. In addition, Golonski said, the new AMC mega-movieplex, scheduled to open next summer, will generate improvements in the area.

``All of us would have loved to see Urban Outfitters move in,'' Golonski said. ``If there was nothing else going on in downtown, I could swallow that load. But there's a lot going on. It's really a question of how much money can you put in one site. That's what really made us stop and think about it.''

Councilman Jef Vander Borght had recused himself from the 2-2 vote, saying he has worked with Tucker Investments Inc. in the past. Mayor David Laurell and Councilwoman Marsha Ramos supported the deal.

Urban Outfitters, a highly successful retailer with 75 stores nationally and in Great Britain, was one of the first to open on Santa Monica's Third Street Promenade, acting as a catalyst to attract additional shops to the area. In addition, Urban Outfitters also can be found in Old Pasadena, and on Los Angeles' Melrose Avenue.

The city's Redevelopment Agency estimated that Urban Outfitters would have generated about $30,000 a year in tax revenues, based on its performance and Burbank's demographics.

``That would have been an excellent location for them,'' said Susan Bowers, executive director for the Burbank Chamber of Commerce. ``Based on demographics, the 1.8 million people who shop at Ikea each year would have rounded the corner to shop there.''

Its parent company, the Pennsylvania-based McDevitt Co., considered Burbank because of its promising retail opportunities, said President Wade McDevitt.

McDevitt said Wednesday he was uncertain if Urban Outfitters would still try to move into Burbank. The company had envisioned opening next year.

``Burbank is a city that has good bones. It's almost like a mini-Third Street Promenade,'' McDevitt said. ``We only open a handful of stores each year. We're very particular about where we open. We're hoping Burbank is capable of working with us.''

CAPTION(S):

map

Map:

Site of former Newberry's store

Daily News