GARDEN GROVE : City OKs Deal for Opening of Big Warehouse

One of the nation’s largest distributors of office furniture and supplies will soon open a regional distribution center in the city under an agreement approved this week by the Agency for Community Development.

Boise Cascade Office Products will renovate the former Baxter Pharmaceuticals building on Western Avenue and convert it to a warehouse. The agency has agreed to pay half of the company’s $9.5-million expense for relocation, equipment and renovation.

The annual payments of $375,000 over a 12-year period will come from sales taxes the business will generate.

“We’d be very silly not to take advantage of this,” Mayor Bruce A. Broadwater after the 3-1 vote Tuesday. “This will create jobs and spur economic development.”

But Councilman Robert F. Dinsen, who voted against the agreement, said an almost $5-million subsidy is “too heavy.” Dinsen said he is opposed to using taxpayers’ money to help private businesses.

Councilman Tony Ingegneri, who arrived late for Tuesday’s meeting, did not vote.

City officials said the new business will create about 180 jobs and add $10.2 million to the general fund over 12 years.

In addition, the proposed warehouse at 12131 Western Ave. will not cause noise and traffic problems because business would be conducted mostly by telephone and other electronic devices, officials said.

Boise Cascade has a 10-year lease on the 188,000-square-foot warehouse, with options to extend it for two years. The company is expected to move in in January.