SANTA CLARITA : Builders Discount Drops Store Plans
A chain of discount hardware stores has abandoned plans to build a store in Santa Clarita, depriving the city of up to $1 million annually in projected sales tax revenues.
But the city will not be forced to cut services because officials did not include the expected sales tax revenue from the Builders Discount project in the budget for fiscal year 1992-93, which begins July 1, City Manager George Caravalho said.
“We’re disappointed, but we’re hoping another substantial business of that sort is interested in the site,” Caravalho said Wednesday.
The eight-acre property at Newhall Ranch and Bouquet Canyon roads is owned by Newhall Land & Farming Co., which was selling it for an undisclosed price to Builders Discount. Discount chain officials declined to comment Wednesday, but Caravalho said the sluggish economy played a role in the demise of the deal.
Regardless of who ends up developing the property, the city plans to annex it under an agreement worked out last year with Newhall Land. The developer agreed to allow the city to annex the property in exchange for permission from the city to issue up to $20 million in city-backed bonds to pay for road improvements for the area’s first regional mall.
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