Developers Withdraw Plan for Downtown Burbank Site

Developers of a proposed $223-million shopping complex for downtown Burbank centered on the discount-oriented Price Club withdrew the offer early Wednesday during a heated Burbank City Council meeting and threatened to shut down the existing Price Club in Burbank.

The pullout by the partnership of Price Co. and Kornwasser & Friedman Shopping Center Properties punctuated a six-hour session marked by hostile exchanges between council members and developers vying for rights to build on the 41-acre site.

When the meeting ended about 1:30 a.m. Wednesday, council members were still arguing about which developers they want to negotiate with. The council delayed a decision until Tuesday, frustrating developers and drawing criticism from spectators. Councilman Robert R. Bowne said he was embarrassed by some of the exchanges during the meeting.

‘Grandiose Pipe Dream’

Although city planners had recommended that the City Council seriously consider the Price-Kornwasser proposal, the council seemed to prefer two other proposals--including one that planners warned could “be a grandiose pipe dream.”

The Price-Kornwasser plan was one of two projects Burbank planners thought would work well on a site that the city has been struggling to develop for almost 20 years. The two-level, open-air Burbank Promenade would have been anchored by Price Club, Home Depot and other stores.

Despite the recommendation, the council spoke in favor of two proposals that included enclosed malls. Council members said they favored a traditional enclosed shopping center and did not think that a discount retail store complex should be the downtown centerpiece.

Councilwoman Mary E. Kelsey said she had received several calls and letters opposing the Price Club project. She said the critics did not want a heavily advertised promotional center as the cornerstone of downtown. She noted that Price Club is open only to people who pay $35 to join.

Kelsey said she doubted the accuracy of a Price-Kornwasser survey that showed residents favoring the project.

Explore Other Sites

In withdrawing the offer, Joseph Kornwasser, president of Kornwasser & Friedman, told the council, “This kind of project is not wanted in Burbank. I’m sorry for that, and I’m sorry for us.” He said the firm would explore alternate locations in Glendale, Pasadena “or wherever we’re wanted.”

Kornwasser said that if Burbank is unhappy with Price Club, the store may leave Burbank.

Kelsey said Kornwasser’s statements were “nasty. It’s like a little kid grabbing his ball when he’s upset and going home.”

The Price Club in Burbank is the city’s largest generator of sales taxes, officials said.

Kornwasser said after the meeting that he wondered why Burbank officials did not tell him earlier about their disinterest in a downtown open-air mall. The partnership submitted its plans in May. He said the firm spent more than $250,000 developing the concept.

City Manager Bud Ovrom said council members did not realize until the final plans had been analyzed that they preferred an enclosed mall.

Council members leaned toward proposals by the Alexander Haagen Co., whose project was favored by planners, and by Triple Five Development Enterprises, a proposal not recommended by planners.

Planners thought the Triple Five plan--a $981-million retail, office and entertainment complex with a triple-level mall and a dolphin arena--was not viable because it was too large for the site, unrealistic and based on uncertain economic projections.

But council members said the proposal had an enclosed mall, offered a variety of stores appealing to a wide range of shoppers and provided an attractive entertainment element.

The Haagen concept was the subject of a heated argument during the meeting between Councilwoman Mary Lou Howard and the developer. Haagen and his wife Charlotte said they would withdraw the project if the city did not negotiate with his firm exclusively.

The Haagen plan was proposed as an enclosed two-level mall with offices, hotels and restaurants. The shopping center would be anchored by the Ikea furniture store and Buffums and Sears, Roebuck department stores.

Howard criticized Haagen’s project as not unique or special enough for Burbank.