DEVELOPER TALKING TO NORDSTROM; RETAILER WANTS BIG INCENTIVE.

Byline: Patricia Farrell Aidem and Mary Schubert Daily News Staff Writers

The Newhall Land and Farming Company is negotiating with Nordstrom to open a store at the Valencia Town Center, but the deal hinges on the city's willingness to contribute an incentive as high as $20 million.

``The community has been clamoring for a Nordstrom,'' Newhall Land spokeswoman Carol Maglione said Thursday. ``The city is reviewing their proposal.''

Officials with the Seattle-based retail chain have toured the mall, reviewed Santa Clarita's demographics and shown interest in locating at the Town Center. But their price for doing business in Valencia is hefty.

``Recently, they informed us they are interested in locating a store here,'' Maglione said. ``They proposed that in order to do that, they receive their standard deal of $20 million, which is normally accomplished by the local municipality contributing sales tax revenue.

``This is their typical fee - $20 million. This is something they've been asking for and receiving. Nordstrom is a major sales tax revenue generator.''

Santa Clarita Mayor Jan Heidt gave the idea a thumbs-down.

``No way. Twenty million dollars is way out of my line of sight,'' she said Wednesday evening. ``I can tell you right now I would vote against it. The cost is just simply too high.''

The city's annual budget of about $60 million relies heavily on sales tax. ``I think it's our largest source of revenue,'' the mayor said.

Municipal lures to private industry aren't unheard of in Santa Clarita. ``We cut a couple of very good deals with Price Club and Home Depot, but it was in the neighborhood of $600,000 for Home Depot and $2.2 million for Price Club,'' Heidt said.

``I think there are times when (incentives) could work because there's not a lot of (public) money put out, and there's a reasonable expectation that it could be paid back in a reasonable amount of time.''

The company also wants $8 million to $12 million worth of amenities, including a building, parking and money toward operating costs. Maglione said again those are typical demands, ones that a developer would cover. Newhall Land, she noted, is willing.

``The city is reviewing the proposal,'' Maglione said. ``We're willing to work with the city to facilitate the deal.''

The Valencia Town Center is anchored by Robinsons-May, J.C. Penney and Sears. It is designed to accommodate two more anchor stores and about 100 smaller mall stores, Maglione said. The center is being expanded with an open-air row of trendier, more upscale shops due to open later this month.

Across from the Town Center is the newly opened Hyatt Valencia, built by Newhall Land, which received $3.2 million from the city's share of federal funding earmarked for economic development.