The City Council, acting as the Redevelopment Agency, has approved an agreement that will lead to a larger Price Club discount store as part of an $18-million retail center.
The complex, to be built within three years by San Diego-based Price Co., will cover 31 acres at Todd Avenue and Foothill Boulevard.
City Administrator Julio Fuentes said the deal is expected bring the city $35 million in tax revenue over the 25-year life of the center.
"It's a biggie," he said. "Not only for redevelopment, but for development in general. We've never had anything like it."
The current Price Club will be remodeled, and a larger Price Club will be built next to it on 13 acres owned by CalMat Properties, which the city will buy and then sell to the Price Co. A restaurant and a fast-food stand will also be part of the center.
Under the agreement, the agency will contribute $5 million to the project. It will borrow $4.6 million of this sum from the Price Co. to acquire the land and then repay the loan from its share of the project's sales tax revenue, which will be split equally between the city and the Price Co. until the debt is paid. If the project fails, however, the agency is not required to repay the debt.