The malling of Simi Valley: with a brand new deal for a major shopping center in tow, Simi Valley city manager Mike Sedell has his sights set on building up the city's commercial core. (People).

UNTIL the early 1990s, building up the housing market in the 39-square-mile city of Simi Valley had remained at the top of officials' priority list, with quality of life and environmental issues consistently outweighing plans for large-scale commercial developments.

But things have clearly changed. Population figures have remained flat for the last four to five years at around 116,000, compared to 100,217 in 1990. And, although there are two housing developments in the early planning stages in Simi, with roughly 1,100 new homes set for completion over the next five to 10 years, homebuilding has slowed significantly.

During the 1970s roughly 50 percent of the city's workforce went to jobs in the San Fernando Valley or elsewhere. Today the figure is below 18 percent due to job market growth over the last decade and the number of residents who have also moved to Simi to set up their own small companies. Countrywide Home Loans remains the city's largest employer with about 5,000 workers.

"We are slowing down now in terms of population and in terms of daily commutes outside our city line," said Mike Sedell, who has served as city manager since 1995. "So clearly now we want to focus on retail and commercial developments that provide the kinds of amenities our residents say they want in their own backyard."

Earlier this month, the city reached an agreement with Corti Gilchrist Partnership LLC and Finley Group LLC, to build an 800,000-square foot shopping mall that will be anchored by Robinsons-May and Macy's. Simi Valley Town Center, set to open in 2005 on a 129-acre parcel north of the 118 Freeway, will also include space for 500 residential units and 500,000 square feet of peripheral development space for a major hotel and/or commercial center.

El Paseo Simi, a $30 million development currently under construction, will include some senior housing and condominium town homes, along with a 200,000-squre foot shopping center, anchored by Kohl's, Borders Books and Music and Pavilions. Kohls is set to open its doors in March.

With housing needs now taking a back seat to commercial projects, the challenge will come in balancing the growth with residential and environmental concerns, Sedell said

Question: Clearly the Robinson's-May and Macy's commitments earlier this month to anchor the Town Center is great news. But the center plans have been on the table for a good ten years. What's been the chief hurdle in getting to this point?

Answer: The number one obstacle for us has been getting a large number of people involved in the economic development industry to recognize what this community has known for some time now: that we have nearly reached full capacity with regard to housing developments. Now the residents who are here want to stay here to shop and dine. They gave us their approval for this mall a while ago. So it has been a balancing act of both getting the support we needed from the people who live here, and the confidence by developers and retailers in our ability to accommodate their projects.

Q: In addition to the Town Center and El Paseo projects, what other retail projects has the city implemented in the last couple of years?

A: A major focus has been on revitalizing some of our older shopping complexes. We've invested roughly $100 million in the Tapo Street Shopping Center, which has included landscaping, new facades, new buildings and incentives for retailers. We've also invested in a revitalization of the Mountain Gate Plaza, the city's first mall built about the same time we incorporated in 1969.

Q: In addition to restaurants, movie theatres and department stores, what other big retailers would you like to see come in?

A: There's no question about it, we need a big box home improvement center, such as Home Depot, and a big-box electronics center like Circuit City. We'd also like to bring in a large sporting goods retailer. Those are the areas where we have (voids) and will be focusing on as we move on these other projects. They are large employers, and we are focused on making sure that as we grow here from within, that we have the jobs to support the community.

Q: As city manager, what have been your primary issues of concern?

A: Obviously growth issues don't come without concerns about traffic, crime or the environment. But what has always been, and will continue to be, our chief priority is to balance the needs of the community with environmental and quality of life issues. That's what this city has always been about. How do we do that? By constantly staying ahead of the growth and anticipating what we will need five, 10 or even 20 years from now.

Q: What are the chief complaints from your residents and how are they being addressed?

A: It's really a mixed bag, but there is no one real overriding issue. I would say it runs the gamut from graffiti to potholes, as in any other city, but those issues are small in scale. We have both a graffiti and pothole hot line and we vow to have them either removed or filled within 24 hours after a complaint comes in. We also have four neighborhood councils that have been up and running since we incorporated. They don't make budgetary decisions, but they are entitled to comment on budget and planning issues, and they are involved in the planning and development process at nearly every level.

Q: As you know Los Angeles is attempting to set up its own neighborhood councils, but few believe they will have any real power. Do you have advice for how to run them effectively?

A: We don't make a move before we find out what the neighborhood council in the area we are looking at thinks about it first. That's the one piece of advice I could give to any city trying to set them up: listen to them. Take their views to heart. Otherwise, don't bother establishing them in the first place.

Q: What is the state of the city's industrial lease market?

A: It's very strong here. Our vacancy rates have remained below 7 percent for several years. But, it's also been a challenge because we'd love to bring in more industrial tenants, but we have a space issue. We get inquiries from companies out of state and even out of the country who are looking for large chunks of 150,000 square feet and up, and we don't have lots that size available right now.

Q: What is being done to address that issue?

A: The council is very concerned that we have enough vacant area to accommodate industrial tenants down the line. For example, one of the planned housing developments on the table, Alamos Canyon, which is set to open in five to 10 years, will include some space for industrial tenants. We see that as a bank for the city's future.

Q: How has the tax base grown over the last five years and what are you anticipating these new retail projects will bring in?

A: We've seen our tax revenue base grow consistently by about 8 to 10 percent annually over the last decade. It's not phenomenal growth, but it's remained consistent. Of course these projects are going to be a turbo boost to the local economy, especially the Town Center. We expect to see an increase in the $2 million range annually, which of course we will have to spend a part of on extra policing for the facilities and other support services. But the bulk of it will be invested in what we always try to focus on: improving the quality of life here for our residents.

Q: How sound is the city's financial health?

A: We are healthy financially, and the city council has always operated on the basis that we run that way. The city's general fund is $45 million, and we set 13 percent of that aside for unallocated expenditures. Total combined funds are about $80 million.

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Mike Sedell

Title: City Manager, Simi Valley

Age: 51

Birthplace: Los Angeles

Education: B.A., CSUN; M.A., public administration, USC 

Career turning paint: discovering what a city manager does

Top of personal to do list: Get organized

Most Admired Person: Father, Sam Sedell