Developers Given Rent Extension

CASTAIC — The Los Angeles County Board of Supervisors gave developers of a proposed $150-million Castaic business park some breathing room Tuesday, deferring $150,000 in rent until the end of the year.

But first, Castaic Associates, developers of the planned Golden State Business Park, must pay $75,000 in back rent owed for leasing the 297-acre county-owned property, located along the Golden State Freeway north of the Wayside Honor Rancho.

The back rent, which must be paid by May 13, amounts to half of the lease money owed for 1992.

“This gives us the next six to eight months to explore options,” said Harold Josephson, owner of Los Angeles based-Josephson Properties and one of two partners in the venture.

The proposed industrial and retail park, which the developer had initially hoped to complete in 1989, has fallen prey to the California recession and tight credit, Josephson said.

Castaic Associates has already completed much of the preliminary work needed to begin construction, such as planning freeway interchange improvements and removing abandoned oil lines and equipment from the site. The group has also obtained permits for the design and construction of the channelization of Castaic Creek, a condition of approval for the project.

The county had considered terminating the lease in August, but negotiations resulted in the county agreement to defer this year’s rent, said program specialist Les Detweiler of the chief administrative officer’s office,

“It’s a temporary relief. It’s certainly not meant to bail him out,” Detweiler said. “We have to try to recognize the business climate in which he is trying to operate.”

Under the agreement approved Tuesday, the developers can abandon the project with no further obligations at the end of the year if the group pays its back rent by May 13.

But, if at the end of the year Josephson decides to continue with the project, he must pay the county $150,000 in rent for 1993 and an additional $150,000 in rent for 1994.