REDEVELOPMENT AT ANY COST? VOTERS TO WEIGH IN ON AMERICANA AT BRAND.Byline: Naush Boghossian Staff Writer GLENDALE - Is $77.1 million too much for the public to pay for a redevelopment project intended to revitalize the city? That's the key question dividing Glendale residents over developer Rick Caruso's Americana at Brand Americana at Brand will be a large outdoor shopping community in Glendale, California. The site is owned by Caruso Affiliated, who owns many other commercial properties such as The Grove at Farmers Market in Los Angeles, CA. project - an issue that goes to a citywide vote Sept. 14. The Glendale Galleria-led opposition to the $264 million retail, housing and entertainment complex argues that to vote for the project is to vote to give away tax dollars and prime downtown land in exchange for increased traffic on already congested con·gest·ed adj. Affected with or characterized by congestion. congested ENT adjective Referring to a boggy blood-filled tissue. See Nasal congestion. streets. But the city maintains that the deal, which supplements Caruso's own $170 million investment, is fair and necessary to turn a blighted area that has not been producing much tax revenue into a vibrant part of downtown. A return on the city's investment would take years, so the decision of whether to proceed with the Caruso center is more a policy decision than a business one. ``The voters have to make a decision that the city in the long run is better with this project than without it,'' said Larry Kosmont, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Kosmont Cos., real estate advisers who specialize in public-private deals and economic development throughout California. ``Does it change the fate of Glendale? Does it make the future of Glendale better?'' Supporters argue it does. The project, which calls for condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. and housing units, a theater, restaurants and stores surrounding a park, would create a downtown centerpiece for Glendale. Most of the city dollars will go to buy land - about half of which will be handed over to Caruso - but the money will also pay Caruso to build a city park and improve city streets, curbs and sidewalks. The city projects that Americana at Brand will generate about $2.5 million in sales and property taxes the first year it's in full operation - a number officials expect will grow each year. Sales tax sales tax, levy on the sale of goods or services, generally calculated as a percentage of the selling price, and sometimes called a purchase tax. It is usually collected in the form of an extra charge by the retailer, who remits the tax to the government. will go into the city's general fund to pay for anything the city chooses, including libraries, fire and police services. A portion of the property tax will go back into improvements in the redevelopment area. And city leaders say they are banking on ripple effects from the new center. ``We are going to see reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. in the area,'' said Jeanne Armstrong, director of development services. ``It will create an incentive for nearby property owners to reinvest in their properties. ``Redevelopment isn't about getting your money back. It's to make a better downtown. It's not going to be a windfall, but there is value to the city. The reason you buy a house is to provide a nice place for your family to live - not to make money on it 30 years from now, even though you do.'' But opponents maintain the outdoor mall's price - including the city sweetening the deal by giving to Caruso 8.5 of the 15.5 acres - is too high, even taking into account the tax revenues and a profit-sharing agreement. ``Everyone agrees that we need to develop this area in some way. The question is, why is the city giving away so much money and getting so little in return when the developer is making so much money?'' asked Douglas Johnson Douglas Johnson (1925-2005), a British historian, was born in Edinburgh in 1925. He attended the Royal Grammar School, Lancaster, and then Worcester College, Oxford, on a history scholarship. , a volunteer for the campaign against the Americana. ``I think we can do much better for our money. The city didn't strike a good deal.'' One alternative to consider is being pushed by owners of the Glendale Galleria The Glendale Galleria is a large 3 story regional shopping mall located in Glendale, Los Angeles County, California. It is the second largest mall in Los Angeles County. It is located in Downtown Glendale. , who have said their plan would cost significantly less than Caruso's as well as address traffic and concerns about the Americana linking well with surrounding businesses. But Galleria owners have never provided any financial details about their alternative. Ralph Shaffer Ralph Shaffer was Senior Vice President of Creative and director of new-product development at American Greetings. Joining the company's design studio in 1964, Shaffer worked under Ziggy cartoonist Tom Wilson (cartoonist) and was instrumental in developing several commercially , who chaired the 1993-94 Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. County grand jury subcommittee on redevelopment, said inviting a developer into the city with a massive subsidy is not using money wisely. ``This is socialism for the rich,'' said Shaffer, professor emeritus of history at Cal Poly Cal Poly may refer to:
``It's wrong primarily because it's a form of extortion on the part of the developer that he'll go to a nearby city if they don't provide him with some sort of subsidy.'' Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the for the Los Angeles County Economic Development Corp., said that given the high cost of construction materials and other factors that can skew (1) The misalignment of a document or punch card in the feed tray or hopper that prohibits it from being scanned or read properly. (2) In facsimile, the difference in rectangularity between the received and transmitted page. a project's economics, cities may have to start resorting to upping the incentives to draw developers to their cities, he said. ``Sometimes you have to give land away. It goes back to that axiom - you have to spend money to make money.'' More than 30 years ago, the city of Glendale provided subsidies to help create the economic juggernaut Juggernaut, India: see Puri. Juggernaut (Jagannath) huge idol of Krishna drawn through streets annually, occasionally rolling over devotees. [Hindu Rel.: EB, V: 499] See : Destruction that is the Glendale Galleria. In 1973, the city spent $12.8 million assembling land for the Galleria, relocating the people and businesses there, clearing the property, rebuilding some of the streets, closing streets and building a parking garage. In 1983, city officials did the same thing to build Galleria II at a cost of $8.7 million. The investment paid off. For the past 20 years, the Years, The the seven decades of Eleanor Pargiter’s life. [Br. Lit.: Benét, 1109] See : Time Glendale Galleria has consistently been the first or second largest revenue generator for the city - along with the car dealers - with about $4.5 million just in sales tax last year. Americana at Brand supporters concede that redevelopment has always been controversial, polarizing communities throughout the nation. ``You're taking public dollars and assisting a private developer who is going to realize a profit. Some people don't believe that's the proper use of public dollars,'' Armstrong said. Armstrong and others maintain that rather than resort to easy sales tax generators such as big-box retailers, they are trying to be innovative in their vision for the downtown area and the future of Glendale. ``Great communities are not built purely on investments that equate only to a financial return,'' Kosmont said. ``Does Central Park pay for itself or is it one of New York's greatest assets? There are hundreds of investments like that that change the character and fate of a community and bring different benefits.'' Naush Boghossian, (818) 546-3306 naush.boghossian(at)dailynews.com CAPTION(S): 2 photos, box, map Photo: (1 -- color) Developer Rick Caruso (2 -- color) View looking south along Brand Boulevard. Box: PROPOSED AMERICANA OUTDOOR MALL SOURCE: Caruso Affiliated Caruso Affiliated is a real estate development company in California, U.S.A.. It is headed by Rick Caruso. It is known particularly for building higher-end outdoor shopping centers. Holdings, Elkus/Manfredi Architects, Ltd.; City of Glendale Daily News Map: Americana at Brand outdoor mall site |
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