January Decision : Burbank Council Hears 4 Proposals for Downtown Site

Four proposals to develop 41 acres of downtown Burbank were unveiled before City Council members Tuesday, including a $984.5-million retail, office and entertainment complex that would feature a tri-level mall and a dolphin arena.

Projects proposed by three other developers competing to build on the site are a $275-million retail, office and hotel complex; a $220-million office, entertainment and shopping complex, and a $250-million regional center that would feature an entertainment and retail complex and three office buildings.

Alexander Haagen Co. offered to pay the city $100 million for the property, the partnership of Cusumano Development and Watt Commercial Properties offered to pay $60 million, and the partnership of Triple Five Development Enterprises and LJ Hooker Development offered $73.8 million. The other developer said it wanted to rent the site from the city.

Council members said they will decide which proposal to accept for the site, which is near the Golden State Freeway and the city’s Civic Center, in late January.

Triple Five Development Enterprises, an Edmonton, Canada, company, and LJ Hooker Development of New York presented the most elaborate development plan. They proposed building a 4.6-million-square-foot complex, consisting of retail, office and hotel facilities. The $984.5-million “Fashion Mall at Burbank” would generate from $9 million to $20 million a year in tax revenue for the city during its first 6 years of operation, a representative said.

The project would be anchored by B. Altman and Bonwit Teller department stores, said Nader Ghermezian, president of Triple Five. The project would include a dolphin arena, petting zoo and miniature golf course, he said.

Burbank-based Cusumano Development and Santa Monica-based Watt Commercial Properties presented a $275-million plan for a hotel, shopping and office complex that a representative said would be a “24-hour, 7-day-a-week community within the city.” The project would be called “City Circle Center,” said Michael Cusumano, vice president of Cusumano Development.

Cusumano said the firms would pay the city $60 million for the land. He said the project would bring Burbank $73 million in tax revenue during its first 10 years.

Joseph K. Kornwasser, representing Price Co. and Kornwasser and Friedman Shopping Center Properties, proposed what would be called “The Burbank Promenade.” Kornwasser said the company wants to lease the downtown site from the city for $4 million a year or 15% of the project’s annual net operating income, whichever is greater.

The Alexander Haagen Co. proposed a $220-million shopping and office center, which would guarantee Burbank $100 million in tax revenue during its first 20 years of operation, said Alexander Haagen, company founder and chief executive officer.

The city has been trying to find a suitable project for the redevelopment property for almost 20 years. Walt Disney Co., which had received city approval to develop the property, withdrew earlier this year. Disney officials said the project proposed for the site would not be cost-effective.

Burbank has spent about $51.9 million in acquiring, clearing and maintaining the site.