City Extends Credit to Expand Mall
In their first declared action to expand the Glendale Galleria, city officials on Tuesday endorsed a bookkeeping move to extend an additional $4.16 million in credit in city funds to the Redevelopment Agency to purchase downtown property.
The money will be used by the agency to buy three properties south of the shopping mall, between Broadway and Colorado Street, Central Avenue and Orange Street, said Jeanne Armstrong, redevelopment director.
The agency already owns about half of the property in the area, but had not announced plans for any specific development. Armstrong said a comprehensive report on expanding the Galleria will be presented to the agency within six weeks.
Major stores reportedly contemplating locations in the expanded Galleria include Robinson’s and May Co., and possibly a new and larger Nordstrom.
Historically, the city has loaned funds to the Redevelopment Agency to purchase property and make improvements downtown, such as street and sidewalk renovations along Brand Boulevard. The money is repaid to the city from the $8 million to $9 million in property taxes earned annually by the agency from new development. The five City Council members also serve as agency directors.
The latest loan brings the agency’s indebtedness to the city to a record $27.5 million.
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