6 Retailers Agree to Join Valley Project
In a significant step toward economic renewal, representatives of six major tenants have signed agreements to anchor what would be the northeast San Fernando Valley’s largest shopping and industrial complex, a long-sought replacement for the General Motors assembly plant that operated here until 1992, officials said Thursday.
The six tenants join Mann Theatres in the proposed center, which will cost an estimated $75 million to $100 million. The plan includes movie theaters, restaurants and retail shops on 36 acres, representing, if approved, the largest retail development to be built in the northeast Valley since the 1950s.
“Clearly this is the most significant development in the San Fernando Valley since the beginning of the recession in 1988-89, and in that part of the Valley in recent memory,” said Mike Zugsmith, chairman of Capital Commercial New America Network, an Encino-based commercial real estate brokerage.
In December, Mann announced plans to build a 3,700-seat, 16-screen theater complex on the 100-acre property. Earlier in 1996, S & V Van Nuys Associates, a cooperative venture between developers Selleck Properties and Voit Cos., had agreed to develop the GM property.
Aides for Los Angeles City Councilman Richard Alarcon, who represents the area, confirmed Thursday that the retailers have agreed to join the project, but declined to reveal the companies.
In addition to theaters and restaurants, development plans call for retail shops, food courts and an automobile service station that total 356,000 square feet of retail services. Another 30 acres of the property have been reserved for industrial development.
A public hearing on the plan is scheduled for April 2 before the city zoning administration.
“We’ve been working hand-in-hand with the S & V development team in order to expedite the development and we’re looking forward to a smooth hearing,” said Alarcon aide Annette Castro, adding she does not expect much opposition.
Government and community leaders hope the retail project, situated in the 8000 block of Van Nuys Boulevard, will improve the neighborhood and provide jobs. In recent years, gangs, drug dealing and violent crime have made it one of the most dangerous areas of the city.
More than 2,500 workers were laid off when the General Motors plant closed in August 1992 after operating there for 45 years. City officials have been working since the plant closure to replace the lost jobs.
While agreeing the proposed retail development has great economic potential, Zugsmith cautioned that developers need to strike a balance between retail and industrial tenants.
“It’s a good thing anytime you take a site that is just sitting there vacant and you are able to turn it into something new and attractive for the community,” he said.
“The negative is that the tenants won’t be creating any high-paying jobs,” he said. “To realize the site’s full potential, it is important that some industrial or manufacturing tenants move in who will pay a good wage. That will help replace the high-wage union jobs that were lost.”
Supporters, though, say the development would create as many as 2,000 jobs and provide the northeast Valley with much-needed retail and entertainment. The area’s only other major retail center is the Panorama Mall, a 350,000-square-foot complex built in the 1950s.
Some have expressed doubts that the area’s working-class neighborhood can support such a large retail complex. But one local commercial real estate broker said the two companies would not have become involved unless they believed the project would be successful.
“I believe that it will do very well because these developers have put a lot of money and research into this project to make sure that it does,” said the broker, who asked that his name not be used. “They’ve done their homework.”
Martin is a Times staff writer and Satzman is a correspondent.
