Burbank OKs Plan to Build $250-Million Mall, Offices : Project on 41 Acres in Downtown Area

The Burbank City Council gave final approval Tuesday night to a developer’s plan to build a massive retail and office complex on 41 acres of downtown redevelopment property, with grading on the much-anticipated project expected to begin today.

The council voted 4 to 0 to approve a long-term land lease agreement with the Alexander Haagen Co., which plans to build the $250-million Burbank Gateway Center. Councilwoman Mary Lou Howard was absent.

“I couldn’t be more proud to be a member of the City Council here at this moment, what I believe to be a historic time for our community,” Mayor Robert R. Bowne said before casting his vote.

“We’ve got an excited citizenry in Burbank who have waited for 12 or 15 years for just this kind of a project.”

Councilman Thomas E. Flavin agreed, saying: “I believe this is a good project because this creates a core downtown with 2.5 million square feet of retail, office and entertainment uses. And I think that’s something we can be proud of and build on.”

Under the agreement, the city will lease the downtown property to Haagen for 55 years, with four 10-year options to extend the lease to 95 years, in exchange for half the development’s profits.

Fred Bruning, chief of staff for the developer, said that although his company would have preferred to buy the land, it is satisfied with the terms of the lease agreement.

“We think it’s a fair deal and a deal that will work,” Bruning said. “We are very excited. We plan to make this one of the finest regional shopping centers in America.”

The Haagen development will include an enclosed three-level shopping mall with four office towers and a hotel. The shopping mall will be anchored by the Ikea furniture store and Mervyn’s and Sears department stores.

The complex will be built on a downtown site at Magnolia and Burbank boulevards near the Golden State Freeway.

Although grading on the project is expected to begin today, an official ground-breaking ceremony is set for late October, with representatives from the major retail outlets attending, Bruning said.

The Ikea store and an adjoining parking building will be the first structures built, with completion set for November, 1990. Construction on the mall, which will include Mervyn’s and Sears, will not start until early next year.