BUENA PARK : Fedco to Put Store in Redevelopment Area
City leaders this week sealed a deal to bring Fedco Inc., a membership department store, to Buena Park Mall, and they hailed the move as a boost to the local economy.
“It’s going to provide employment and revitalization to our center,” said Councilman Donald L. Bone Monday night. “I think we have a marriage that will work on both sides.”
In a joint hearing of the City Council and the Community Redevelopment Agency, the agreement between the city and Fedco Inc. was approved, which gives the Southern California department store company financial incentives to locate in the mall.
The 10-year agreement with the city’s Redevelopment Agency will give Fedco financial credits toward its lease payments, which are equivalent to 50% of the city’s share of sales tax generated, not to exceed $670,000 a year, said Thomas E. Lynch, director of development services. The actual amount of sales tax will be based on the store’s sales performance each year, Lynch said.
Fedco, which is moving into the former May Co. building, is projected to generate in excess of $800,000 a year in sales-tax revenue to the city, officials said.
Mayor Arthur C. Brown said Fedco will be replacing tax money lost when May Co. closed in January.
“We were devastated when May Co. moved out, but in the long run it’s going to be better for the city in the amount of sales tax generated,” Brown said.
Since the mall is in a city redevelopment project area, the Redevelopment Agency is able to offer the financial incentive package to Fedco, in which the store will also stimulate the city’s economic climate, officials said.
Fedco, which is spending $10 million to renovate the three-story, 240,000-square-foot building, is expected to employ about 500 people and help boost mall business by attracting more shoppers, officials said.
Fedco officials said the store, planned to open in October, is expected to attract between 8,000 and 12,000 shoppers a day. Fedco, which has nine Southern California stores, has one Orange County store in Costa Mesa.
The store will feature a farmer’s market and food court on the first floor. The second floor will offer general merchandise such as clothing. The third floor will have appliances, home furnishings and electronics. The store will also have an outdoor garden shop and sell tires, batteries and car accessories.
Terrie Powell, president of the mall’s merchant’s association, said retailers are looking forward to Fedco locating to the shopping center.
However, Powell, owner of Wild Tops, which sells personalized and silk-screened T-shirts, said there is concern among some merchants that Fedco could hurt their business since the department store may offer similar goods at lower prices.
“But a lot of them are excited about it because they will bring a lot of traffic into the mall,” Powell said. “Right now we need anything--traffic in the mall is very slow.”
