Tustin Lands Southland’s First Micro Electronics Store : Redevelopment: City pledges financial aid to help warehouse-type computer chain revamp vacant building.

Micro Electronics Inc., an Ohio-based operator of warehouse-like computer stores, is scheduled to convert a 45,000-square-foot former hardware store in Tustin into its first Southern California location.

City officials, excited at the prospects of dozens of new jobs being created, agreed this week to spend up to $638,000 over 10 years to assist Micro Electronics, which holds a 15-year lease on the four-acre property on Edinger and Del Amo avenues.

The Tustin City Council and the Redevelopment Agency, both by unanimous votes Tuesday, approved the redevelopment assistance and a plan to sublease to the retailer the second floor of the Del Amo Avenue building that the city used as a temporary City Hall until last month.

Micro Electronics, based in Columbus, operates a chain of seven huge computer stores--most on the East Coast--that offers large selections of hardware, software and accessories at discounts up to 40% off retail, company officials said. The company has projected sales of more than $400 million this year, according to Computer Reseller News, a computer industry publication.

Last year, the company opened a 62,000-square-foot Micro Center in Fairfax, Va., considered the world’s biggest computer retail store, the company said.

“There’s a big market out here and we’re excited to be here,” said Dave Bishop, who will be in charge of the Tustin store make-over.

The council also approved the design of the revamped store, including new architecture, landscaping and parking improvements. The building was formerly occupied by Builders Emporium, which closed last month.

City officials said the renovation will take about two months and will cost $4.27 million. Once completed, the Micro Center in Tustin is expected to create about 70 jobs and generate from $2.4 million to $4.9 million in sales taxes over 10 years.

Micro Center will likely become one of the city’s larger retailers, with sales up to $40 million expected in the first year, said Christine Shingleton, Tustin assistant city manager.

She said the city’s financial assistance would be spread out over 10 years and will not involve any up-front money. It will also depend on whether Micro Electronics meets sales tax targets for each year, said Shingleton in support of the city’s aid package.

“In today’s environment, it would be difficult for any city to pursue a new retailer of Micro Center’s potential without some assistance,” she said.

Included in the package is providing the company below-market monthly rent of $3,500 for the temporary City Hall building that was used during the two-year renovation of the Civic Center. The city, which has the building under lease until April, 1994, said Micro Electronics would use the space to recruit and train new employees.

Catellus Development Corp., which owns the building that Micro Electronics will occupy, has agreed to pay $1.12 million for building and site improvements. The long-term lease has a start rate of $7.14 per square foot per year.

“In this economy and in this market, it was good we got an outstanding tenant,” said John Low, Catellus Development’s regional project director.