ANAHEIM : Fullerton Drops Suit on Redevelopment

The city of Fullerton has dropped its suit against Anaheim over an 895-acre redevelopment project after Anaheim agreed that it will not try to lure large retail developments to the area for 20 years.

In return, Fullerton agreed to share its revenue from some of its shopping centers on the Anaheim border if that revenue grows faster than the general economy.

“We hope this will usher in an era of cooperation between the cities, rather than competition,” said Barry Eaton, Fullerton’s chief planner.

Fullerton had contended that a retail development within the project area--which is just inside Anaheim’s border with Fullerton--would have adversely affected its traffic, pollution and sewer systems and stolen customers from nearby Fullerton shopping centers.

But Anaheim agreed that, through the year 2013, it will not give financial assistance to anyone wishing to build a large-scale retail development in the area nor will it use its power of eminent domain to acquire property for such a development.

Anaheim could still lure developments that are primarily commercial in nature, such as office buildings, hotels or sellers of products used by other businesses.

Retail stores such as coffee shops and gift stores will be acceptable, provided they don’t make up more than 10% of the development.

Under the agreement, a privately owned and developed retail center could be built in the redevelopment area, which is bordered by Fullerton on the north, La Palma Avenue on the south, Harbor Boulevard and Lemon Street on the west and East Street on the east.

“But we don’t think that is going to happen,” Eaton said. “Your big retailers such as Wal-Mart won’t move in anywhere without a deal” with the city.