Mall Builder Pays Deposit of $1 Million to Burbank

Times Staff Writer

The Burbank City Council, acting as the city’s Redevelopment Agency, has formally agreed to negotiate exclusively with developer Alexander Haagen to build a downtown shopping mall that could cost as much as $200 million.

As part of the agreement, Haagen, a major developer of malls in Southern California, paid a “good-faith” deposit of $1 million to the city. The deposit will be applied toward the purchase price or lease payment for the proposed shopping center site.

Haagen is also giving the city an additional $500,000 to pay the city’s costs in negotiating an agreement and preparing environmental studies on the project.

The agreement, announced Tuesday, marks the latest step in Burbank’s plan to have a major shopping mall within the city limits. The city has tried unsuccessfully to develop a mall on 41 acres near the Civic Center, but projects proposed by several developers have fallen through.


Haagen has proposed building the Burbank Gateway Center, a 1.4 million-square-foot project to include a two-level mall, offices, hotels and restaurants. The shopping center will be anchored by the Ikea furniture store, as well as Buffums, Mervyn’s and Sears, Roebuck & Co. department stores. The site is at Magnolia and Burbank boulevards near the Golden State Freeway.

Community Development officials said the city will negotiate details of the proposal, including how much the project will cost, in the next 30 to 90 days.

If the council approves the concept and details, an environmental review of the project will be conducted. After that, a final plan would be brought before the council.