City may subsidize mall upgrades

Eron Ben-Yehuda

After an Irvine developer finalizes its purchase of most of the

Huntington Beach Mall this week, serious negotiations will begin with the

city about how to subsidize a long overdue renovation.

Preliminary proposals have gone back forth between the city and Ezralow

Retail Properties LLC, since its offer of $48 million was accepted in

July by the Macerich Co., which owned the property since late 1996.

City officials hope that the dormant center at the corner of Edinger

Avenue and Beach Boulevard finally will reach its potential now that

Ezralow has taken charge.

To encourage Ezralow to build the best possible mall, the city will

consider paying the developer for upgrades, which may cost as much as $50

million, City Councilman Dave Garofalo said.

Although the cash-strapped city won’t hand over any money up front, it

might repay part of the project’s costs with interest from tax revenues,

said David Biggs, the city’s economic development director. If the

project doesn’t make money and tax revenues aren’t generated, the city

won’t pay, Biggs said.

A similar deal made this year for the redevelopment of the 400 and 500

blocks of Pacific Coast Highway was criticized as being overly generous,

but Councilman Ralph Bauer said he’ll make sure the city doesn’t give up

too much.

“If it’s not a good business deal, quite candidly, it ain’t going to go,”

he said.

While everyone seems to prefer an open-air mall with a movie theater and

restaurants, city officials disagree about what type of retail stores

should be added.

Biggs aims to attract upscale stores like the ones found in Fashion

Island and South Coast Plaza, but Garofalo envisions “value-added” stores

such as factory outlets moving in.

The bottom line is the city will welcome any change, Garofalo said,

adding that whatever kind of mall is eventually built will be far better

than the one in place now.