Apartment Development OKd : Burbank Sells Vacant 7 Acres for $7 Million
The Burbank Redevelopment Agency voted Tuesday to award a development contract for a vacant seven-acre site to the Casden Co. of Beverly Hills. The vote followed last-minute lobbying by two other companies bidding for the job.
Casden, which will pay $7 million for the city-owned land, plans to build a three-story, 400-unit apartment with underground parking at the site, on Angeleno Avenue east of the Burbank Holiday Inn.
Redevelopment Director Larry Kosmont recommended last week that the contract be awarded to Casden because of the developer’s financial strength and its plan to finance the project with multifamily-housing bonds. The company first offered to pay the city $6.75 million, the highest bid originally received for the property.
In the last week, however, all three companies competing for the contract indicated their willingness to pay up to $7 million. They also agreed to revise their proposals to comply with the council’s wishes that fewer than 500 apartments be built. Casden originally proposed a 500-unit project.
‘Came in First’
“My feeling is, the Casden Co. came in first and they followed all the rules,” Mayor Mary Lou Howard said. She said the other two bidders “were trying to play catch-up.”
Redevelopment officials had agreed to re-evaluate offers by the Lincoln Property Co. of Dallas and the Culver City-based Goldrich Kest & Associates after representatives of the firms complained that city officials had inaccurately judged their abilities to develop the property.
City officials said the council had to pick a developer this week to avoid jeopardizing financing of the project through the housing bonds, which could be eliminated by pending federal tax legislation.
The redevelopment site is bounded by 3rd Street, Verdugo Avenue, San Fernando Boulevard, the Golden Mall and Angeleno Avenue.
Previous Problems
The site, part of the City Centre project, has been a source of problems since the city decided to develop it five years ago.
One acre has already been slated for a federally subsidized high-rise for senior citizens, but breakdowns in negotiations and disputes between the city and potential developers have kept the land vacant.
The latest major setback came in May when a group of developers withdrew plans to build apartments and boutiques.
After their withdrawal, 165 other developers and brokers expressed interest, Kosmont said. The field was narrowed to four developers, including a Burbank-based firm that did not submit a new proposal.
