Council Praises Ovrom’s Advice on Deal With Haagen : Burbank: The city eventually made more money in mall agreement by rejecting his suggestion. Still, city manager is told, ‘You’re doing a great job.’

Burbank City Council members gave a public vote of confidence this week to City Manager Robert (Bud) Ovrom, saying he gave them sound advice during negotiations with mall developer Alexander Haagen.

Ovrom recommended in July that the council accept an offer the city valued at $7.4 million from Haagen to end the city’s interest in the financially ailing Media City Center shopping mall.

The offer was made up of $2 million in cash from Haagen and other anticipated revenues to the city.

Mayor Bill Wiggins and Vice Mayor Dave Golonski eventually rejected Ovrom’s advice and held out for what became a $10-million buyout deal.

Nonetheless, Wiggins, Golonski and Councilmen Bob Bowne and George Battey applauded Ovrom for his negotiating work during a council meeting Tuesday. Councilwoman Susan Spanos was absent.

“Portraying the city staff’s recommendation--the city manager’s recommendation--as a bad one clearly was not the case,” said Golonski, who served as liaison between the council and the city’s negotiating team.

“In my opinion, staff worked very, very closely with . . . the entire council, and there was hardly any disagreement throughout the entire process,” he added.

“I think it’s fair to say you obviously have the support of all of us here,” Wiggins told Ovrom. “You’re doing a great job.”

Under the package recommended by Ovrom, the city would have received $2 million in cash, $2.1 million in projected property taxes from a proposed office building developed by Haagen near the mall, and an estimated $150,000 annually for 10 years or more in city sales taxes generated by 34 of the 149 mall stores and by a nearby Circuit City, Office Depot and restaurant.

City officials had earlier given those sales taxes to Haagen.

The final buyout deal approved this month calls for Haagen to pay the Burbank Redevelopment Agency $10 million over the next two years.

In return, Haagen gets the right to develop two remaining parcels near the mall in any way he wants and to continue leasing the mall land for just $1,000 a year for 95 years.