2nd Finalist Backs Out of Competition for Developing 41 Acres in Burbank

The sponsor of the most ambitious project proposed for a controversial 41-acre lot in downtown Burbank abruptly pulled out Friday, becoming the second of six finalists to withdraw in the last week.

Dee Christiansen, representing a partnership of three development firms--Christiansen-Geiger of Burbank, Kumagai Gumi Land California of Tokyo and Fullerton-based Dicker Wormington Properties--wrote Burbank officials that he was unsure what kind of project the city wanted for the site, which is redevelopment property.

He added that there was no indication that the city wanted a project as large as the one envisioned by the partnership, pointing out that all five of the other finalists had proposed smaller projects. By withdrawing, the partnership saves a $15,000 city processing fee and avoids the cost of preparing a detailed plan.

The project was “Burbank Metro Center,” consisting of 1 million square feet of retail space and 4 million square feet of office space, a 500-room hotel and 10 movie theaters. Included was a 2.8-mile electric transportation system connecting the project to Burbank Airport via an overhead railway system.

“We came to the conclusion that the range and scale of the proposed developments is too broad” (500,000 square feet to 5 million square feet), Christiansen said in the letter. “We do not believe that the city has been able to identify an acceptable set of boundaries within a true competition can take place.”

The partnership was the only company to offer cash for the site. They offered to pay the city $100 million for the rights to build a “complete downtown,” a “billion-dollar project.”

City officials said they were not surprised or discouraged by the withdrawal. City Manager Bud Ovrom said he had recommended against placing the Christiansen-Geiger proposal on the finalist list.

‘Overly Grandiose’

“Staff always viewed this project as being overly grandiose and lacking in substance,” Ovrom said. “It was a pie in the sky. We felt it was ill-defined, and it was never clear to us what they wanted to accomplish.”

Officials also thought that the $100-million offer was too good to be true and that the partnership could not really produce the payment. However, the council put the proposal on the list, saying the city was interested enough to review a more specific outline.

Mayor Al F. Dossin said he felt the project was oriented too much toward office space. The city, he said, prefers an emphasis on retail. “I’m sorry to lose that $100 million, though,” he added with a chuckle.

The other finalist to withdraw was Public Storage Development Co., which dropped its proposal last week because it did not believe that it had a realistic chance of being selected.

Nine companies originally submitted proposals for the site, which is bounded by Burbank Boulevard, Third Street, Magnolia Boulevard and the Golden State Freeway. The Burbank City Council last month narrowed the list to six and directed them to submit detailed plans by the end of November.

The remaining four are:

Triple Five Development Enterprises, a company in Edmonton, Alberta, Canada, that proposed a retail-entertainment area with an aquarium, miniature golf course and day-care center.

The Alexander Haagen Co., one of the largest developers of retail malls in Southern California, which proposed a retail and office project.

Watt Commercial Development of Santa Monica and Cusumano Development Co. of Burbank, which proposed a 1 million-square-foot office area, a shopping center and a 250-room hotel.

The Price Club and Kornwasser and Friedman Shopping Center, which proposed a retail and entertainment center.