The Redevelopment Agency gave preliminary approval Monday to a $57.3-million revitalization plan for the Fashion Plaza mall, instructing its staff to negotiate a development agreement with the mall owner, Sylvan Shulman Co., and May Centers Inc.
The plan calls for adding a 140,000- square-foot May Co. store, 100,000 square feet of new mall area and 82,000 square feet of peripheral commercial development. In approving it, the city rejected competing proposals from owners of two small mall properties for more limited rehabilitation.
The May Co. will move from the Eastland Shopping Center, the city’s other mall, which is owned by May Centers and is the focus of a separate revitalization proposal. May Centers is a subsidiary of St. Louis-based May Department Stores Inc.
Negotiations over how much money the Redevelopment Agency will contribute are under way. The final contribution will probably involve a future sales tax or tax increment paid to the developers. Redevelopment officials said the city will provide no money up front for the project.
The revitalization is intended to transform the 14-year-old center into a “super regional mall” competing with the Puente Hills Mall, Santa Anita Fashion Park and the Montclair Plaza. According to city studies, the Fashion Plaza has had a 7% decline in sales and a 19% decrease in customer traffic from last year.
May Centers officials said the company has a $17.5-million budget for the project.