PICO RIVERA : $30-Million Project Set for 13-Acre Parcel

City officials have finally given up on their ambitious plans to convert a 13-acre mishmash of vacant lots and dilapidated businesses into a bustling retail, commercial and residential complex at Washington and Rosemead boulevards.

Instead of a lucrative development anchored by a major hotel or national retail outlets, officials this week opted for a $30-million residential project--a combination of single-family homes and apartments for senior citizens.

“Sure, we would have liked something that would have generated tons of money for the city,” said City Manager Dennis Courtemarche, “But this was the best deal that we could cut and it now makes the best economic sense for us.”

The city will use as much as $7.8 million in redevelopment funds to help finance the project, which will include 115 homes and 150 units for senior citizens. The developer will eventually refund nearly half of that amount, Courtemarche said.

Officials first targeted the site for redevelopment in 1983, hoping to lure a major hotel chain to accommodate visitors to the nearby Northrop Corp. plant. That effort failed, but officials still envisioned a mix of commercial and retail complexes that would include a full-service restaurant and a major electronics store, among others.

But nothing materialized.

Hank Gordon, a Las Vegas developer in charge of the project, said this week that his efforts to attract national commercial and retail chains were hampered by bad economic times and other developments.