SIMI VALLEY : City Rejects Offer to Buy Site for Mall

Two weeks after buying 32 acres of prime hillside property once planned for a Wal-Mart, the city of Simi Valley has decided not to buy two neighboring parcels zoned for a regional mall.

In a letter received by the city last week, Mitchell Realtors offered to sell the city 80 acres of undeveloped land for about $8.8 million, which works out to the same per-square-foot price that the city is paying for the neighboring property.

But in a letter sent in response, City Manager Lin Koester rejected the offer, saying “acquisition of the property is not imperative at this point in time.”

In mid-December, the city agreed to pay $3.5 million for an adjacent 32-acre parcel, part of the Lucile Estes Estate. The property was owned by Estes’ husband, former City Councilman Bill Baker.

According to the city’s land-use plan, part of that property could be used to build a road required for construction of the mall.

At Koester’s urging, City Council members approved the purchase, saying they hoped that city ownership would entice a mall developer to build on the property by eliminating the hassle of negotiating for the roadway site.

Responding to criticism that the deal was being rushed, Koester said new state legislation regulating community development agencies would outlaw the purchase if it were not made by Jan. 1.

In his letter rejecting the offer to sell the city the 80 acres, Koester said there was no immediate need for the city to buy the property because the adjoining parcel was enough incentive for mall developers.

The landowners still have the option of selling the property directly to a mall developer.