Recession May Delay Planned Regional Mall : Simi Valley: Troubles facing retailers may pose difficulties in signing up three department stores for the project.

The developer of a proposed regional mall in Simi Valley said Wednesday that the worsening economy, which has resulted in belt-tightening measures by large department store chains, may delay the long-awaited project.

“It has affected the timing of the project,” Kevin Kudlow, project manager for Melvin Simon & Associates, said of the current recession. “But I wouldn’t say it has put it in jeopardy.”

Kudlow said the developer had been looking at a May, 1993, groundbreaking for the 981,000-square-foot mall. But he said that even if the Simi Valley City Council approves the project by May of this year, construction would probably be delayed.

Part of the reason, he said, is the recession and the slump in the retail market that this week caused the parent company of the Los Angeles-based Broadway department store chain to file for bankruptcy protection and Chicago-based Sears, Roebuck & Co. to announce the layoffs of 9,000 employees.

Kudlow said both of the department store chains were among several retailers that had expressed interest in the Simi Valley mall proposal. He said none of the stores he has approached is planning to expand operations in the near future.

Kudlow said Melvin Simon needs to sign up three department stores for the mall before construction begins to ensure financing for the project and to help attract smaller retail businesses.

“We can’t build a shopping center on speculation,” Kudlow said. “The only thing we can do is be patient and wait and see if the economy turns around.”

Melvin Simon has proposed building the two-story enclosed mall on 126 acres north of the Simi Valley Freeway between First and Erringer streets. The project would also include 500,000 square feet of commercial and office space.

The mall would be built in two phases. The first would include the three department stores, a variety of smaller retail businesses, a food court and a movie theater. The second phase would add two more department stores.

Simi Valley Mayor Greg Stratton said the city will do everything it can to keep the project on track. “Obviously, it’s going to take a healthy economy,” Stratton said.

“But I have faith that the economy is going to rebound. . . . Who knows? The war could be over soon and there could be a big economic boost.”

Not everyone is disappointed that construction on the mall, which has been in the planning stages for five years, may be delayed.

“It’s absolutely OK with me,” said John Etter, who lives near the mall site and is a member of a neighborhood council.

Etter’s group met with Kudlow on Tuesday night to discuss the project and to voice concerns about the findings of an environmental report on the development. The report, released in October, found that the project would significantly increase traffic and pollution in the city. It says that once the mall is completed, it will generate more than 45,000 trips per day.

Although the report says these problems could be reduced or managed with street improvements and other measures, Etter said he is skeptical. He said the mall would promote growth and bring in commuters from other cities.

The Planning Commission is scheduled to hold its first hearing on the project’s environmental report April 17.