VENTURA : Esplanade Challenges Area Mall’s Tax Deal

Lawyers for The Esplanade mall in Oxnard are requesting that Ventura rescind the tax-sharing agreement signed last month to finance expansion of the Buenaventura Mall.

The attorneys contend that the City Council “debated, negotiated and finalized” the deal in violation of the state’s open-meeting law, which ensures that the public’s business is conducted in public.

They also claim that the tax-sharing agreement, which calls for the city to rebate almost $20 million in future sales tax to Buenaventura Mall owners, may constitute an illegal gift of public funds.

City Atty. Peter D. Bulens said that the agreement was legally discussed in closed session and that the agreement does not constitute a gift.

“The fact that they don’t like that being done in private I can understand, but we legitimately can do it,” Bulens said.

“We haven’t taken any action secretly.”

But Mark L. Armstrong, who represents The Esplanade owners, disagreed.

“If a policy decision is made in private session and then simply ratified in a formal session . . . that’s not appropriate,” said Armstrong.

Armstrong would not say whether his clients will file suit to stop the Buenaventura Mall expansion.

The Ventura City Council convened a special meeting May 24 to announce and sign the agreement, which calls for the mall owners to invest up to $50 million in renovating the structure and building two new anchor stores.

The Esplanade stands to lose at least one major tenant when the Ventura mall is expanded.

Robinsons-May said it would leave Oxnard for the Buenaventura Mall when construction is completed in 1997.

Owners of the Buenaventura Mall said they are negotiating for a fourth major tenant, which could further decrease the allure of the Oxnard mall.