City Pursues Option to Annex Shopping Center Site

City officials, concerned about economic and environmental effects of an 860,000-square-foot shopping center proposed for just outside Santa Clarita, have acted to retain the option of annexing the site.

The City Council on Tuesday night adopted a formula showing that revenue from the Valencia Marketplace would be offset by the cost of providing more sheriff’s deputies and other services for the center.

The action is necessary because, beginning this year, annexations must be shown to be “revenue neutral”--not increasing or decreasing municipal revenues. Annexing the site would allow the city to receive the sales and property taxes from the regional shopping center.

Earlier this month, Santa Clarita appealed the Los Angeles County Regional Planning Commission’s approval of the Valencia Marketplace, proposed for land west of the Golden State Freeway between McBean Parkway and Pico Canyon Road.

The Los Angeles County Board of Supervisors is scheduled to review Santa Clarita’s appeal May 5.

City officials said the Riley/Pearlman/Mitchell Co. project would divert customers from small local businesses, add traffic to local roads, destroy native oak trees and disrupt riparian habitat.

Without annexation, Santa Clarita officials say, they would need tax revenues from the project. The city asked for 80% of the sales tax revenue from the shopping center to pay for infrastructure and public services such as roads, police protection, parks and libraries. That would amount to more than $800,000 a year if the center generates sales tax revenue similar to the 750,000-square-foot Valencia Town Center.

Council members Tuesday reiterated their request for the sales tax revenue and questioned whether the project meets the county’s rules that infrastructure keeps up with growth. They also suggested layout changes to preserve more of the site’s 141 oak trees.

A major council concern Tuesday was the need for more law enforcement.

“I’m frankly extremely concerned about the budget next year for this city,” said Councilman H. Clyde Smyth.

Councilwoman Jan Heidt said four sheriff’s deputies were needed for the Valencia Town Center when it opened in Santa Clarita in September, 1992, and as many as eight may be necessary for the Valencia Marketplace.