City Embarks on Plan for Factory Outlet : Development: The proposed mall would specialize in goods from Asian manufacturers. It would be built on the former Longo Toyota site.

El Monte city officials have launched an ambitious plan for a unique shopping mall in their city: a factory-outlet plaza specializing in goods from Asian manufacturers.

Tentative plans call for the mall to be built on the 4.8-acre site of the former Longo Toyota dealership on Valley Boulevard. The proposal envisions as much as 200,000 square feet of commercial space and, possibly, a hotel, office buildings, warehouses and convention center.

The development, a project of South Pasadena’s Titan Group, also could mean as many as 700 jobs.

“If all of the pieces come together, this could be a terrific thing,” City Atty. David F. Gondek said.

John Leung, chief executive officer of the Titan Group, said company representatives are meeting with Hong Kong and Philippine manufacturers interested in the proposal.

He cautioned that the proposed development is in its formative stages with many details yet to be worked out, including building costs.

But he also predicted that shoppers would be walking into the mall in about two years.

“It will be a challenge for our company, but it would be a challenge for anyone because it’s a new idea,” Leung said.

Although factory-outlet centers such as The Citadel in Commerce are springing up throughout Southern California, the El Monte mall would be a departure because the Titan group hopes to attract Asian manufacturers to be at least 50% of the tenants.

“Manufacturers from . . . Indochina, Thailand, Malaysia, Taiwan and Korea don’t have brand-name recognition in the United States, Canada or Mexico,” Gondek said. “But they manufacture products under license to companies like G.E., Cherokee and other U.S. companies.”

Leung added that the Asian companies will decide whether to use their own brand names or those of U.S. manufacturers.

A large manufacturer’s outlet will be sought to anchor the mall. But Leung added, “The key to success is the right mix of products.”

The mall would have stores offering clothing, toys, electronic equipment, appliances, leather goods and housewares, he said.

City Administrator Gregory D. Korduner said a proposed conference center at the mall would allow El Monte civic groups to have banquets in the city. Similarly, he said, local businesses could use the center for training sessions.

Korduner added that the proposed mall would be the city’s first regional shopping center. At present, the city’s shopping malls are limited to neighborhood plazas with smaller stores, including the downtown Valley Mall and the Five Points Shopping Center.

Finally, Korduner added, the mall would increase the city’s sales tax revenues.

On Tuesday the City Council took the first step toward creating the mall by approving the sale of the city-owned property at 10501 Valley Blvd. to Titan.

The property, between Arden Drive and the Rio Hondo, was bought by the city Redevelopment Agency for $3.3 million in 1986 when Longo Toyota moved to its present 22-acre location near the San Bernardino Freeway (10).

City officials began talks with the Titan Group two years ago, after a deal with another prospective buyer fell through.

Under the terms of the sale, the Titan Group would pay El Monte $2.5 million for the land, plus an additional $3.1 million over 22 years.

The city, upon approval by the federal Department of Housing and Urban Development, would loan the Titan Group $1.25 million to help develop the project. The city would also would spend as much as $150,000 to remove gasoline storage tanks on the site.

The city and the developer will work together to persuade property owners on both sides of the property--a mattress manufacturer, a steel company and a plastic bag printing company--to sell their land to enlarge the development site.

Negotiations are continuing with these property owners, Gondek said. But the talks are complicated by the city’s financial situation. Officials had to strain this year to offset a $1.6-million deficit and are concerned that the proposed project would further drain city resources.

Nonetheless, city officials are optimistic about the project and its developer.

Raised in nearby Alhambra, Leung, 37, is the founder of the 9-year-old Titan Group. The development company has built homes and apartments throughout Southern California and spent $8 million developing Santa Anita Place, an eight-screen movie theater and shopping complex that opened in November in El Monte.