Developer Pushes Big Face-Lift for Downtown Santa Monica

A makeover of the commercial heart of Santa Monica, unveiled Thursday, would effectively extend the Third Street Promenade while adding a novel mix of high-rise residential quarters, offices, and parkland -- much of it right on top of the buildings.

The proposed development by shopping center owner Macerich Co. would change the face of two city blocks now occupied by Santa Monica Place, an enclosed mall that lost its luster years ago.

Watchers of the Southern California real estate scene said they viewed Macerich’s proposal as a major step beyond outdoor malls like The Grove in Los Angeles’ Fairfax district -- “lifestyle centers” in the trade -- that include shops, restaurants and movie theaters.

By putting stores, houses and offices into a compact urban area -- and then laying lush landscaping across much of the roofline -- “they have an opportunity to make a truly integrated village,” said Los Angeles real estate consultant Larry Kosmont.

“This would be the next level” of commercial projects, added retail consultant Aubie Goldenberg of Ernst & Young.

Of course, Macerich wants to make more than history; it also wants to make money. And by effectively becoming an extension of the Third Street Promenade, the company believes it can do just that.

Nearly 15 million people flock to the Promenade annually, making it one of the Los Angeles region’s top shopping and entertainment attractions. But most of these visitors don’t venture into Santa Monica Place. If Macerich were to raze the mall and replace it with 560,000 square feet of new retail space, it would be much better positioned to soak up some of the Promenade’s popularity.

Santa Monica-based Macerich, one of the biggest shopping-center owners in the country with more than 60 malls in its portfolio, hopes to break ground in 2006. But whether the company can win approval for the project, and how long that process might take, was not immediately clear.

Randy Brant, who is in charge of the development for Macerich, declined to disclose how much the undertaking would cost. Experts said it would clearly run into the hundreds of millions of dollars.

Macerich, which expects to fund the development without public assistance, is scheduled to present its plans to the Santa Monica City Council on Dec. 14.

On Thursday night, it gave a preview to the managers of the Third Street Promenade and others in the community. Some were skeptical.

“I think we are over-developed enough,” said Justin L.B. Gagnon, a 47-year-old Santa Monica resident. “We have so many problems with traffic that I think they can be doing something better for the community than building high-rises. I mean, we argue about hedge sizes in Santa Monica. So this doesn’t make any sense.”

At least one Promenade merchant also expressed reservations.

“My biggest concern is that a new project not leave the Third Street Promenade in the dust,” said Janet Morris, who works for her father’s company, Joseph Romano Co., which owns retail space there. “I think the biggest problems of traffic, cleanliness and safety would be exacerbated with a new project.”

Macerich’s plan was created by Venice architect Jon Jerde, who has worked on many well-known buildings, including the Bellagio Hotel and Casino in Las Vegas. Closer to home, he designed Horton Plaza in San Diego and Universal CityWalk.

As Jerde and Macerich see it, the new development would extend the Promenade across Broadway to Colorado Avenue.

The roofs of the two-story shops flanking the pedestrian mall would be covered by a large park.

The landscaping would also stretch across the tops of two-story units on 2nd and 4th streets that combine apartments with business space, as well as new shops lining Broadway and Colorado.

The 450 housing units on the site would be spread among the so-called live-work spaces, as well as apartments and condominiums in six other buildings. Included among these would be three 21-story towers, which would match the height of 100 Wilshire Blvd., the tallest structure in town.

Santa Monica Mayor Richard Bloom said Thursday that he, for one, is open to Macerich’s ideas -- even the 21-story high-rises, though city guidelines being considered for the area include a 15-story cap.

“I am not going to have a knee-jerk reaction against a tall building just because it is a tall building,” Bloom said.

“This proposal doesn’t require us to change zoning throughout the city,” he added. “We’re only talking about one property. The question is, is there a community benefit to allow deviation from the height restriction and does it truly offend the community aesthetic?”

Macerich, which has been consulting with city planning department staff for more than two years, appears to have added a number of touches to play to local sensibilities.

The public park west of the Promenade would include a children’s play area, public art expositions and ponds and fountains. The green space surrounding the housing to the east would be private.

“We’re introducing nature into the urban heart of downtown Santa Monica,” said architect Marc Blum of Jerde’s firm.

There also would be a seven-story office building, a food court and outdoor restaurants with ocean views.

Meanwhile, the Robinsons-May and Macy’s department stores that currently anchor Santa Monica Place would be rebuilt on the site and held to two stories. Other retailers might not return, giving Macerich a chance to bring in fresh -- and higher-end -- stores.

Existing city parking structures at the north and south corners of the mall would be replaced with underground parking spanning the entire 10-acre parcel.

A computerized tracking system of empty parking spaces would aim to make traffic flow more smoothly than it does now. Mayor Bloom called the current parking situation at Santa Monica Place “terrible.”

Santa Monica Place was completed in 1980 by Rouse Development Co. using a design by local architect Frank Gehry, who is now internationally acclaimed as the creator of Walt Disney Concert Hall in Los Angeles, the Guggenheim Museum Bilbao in Spain and many other cutting-edge structures.

Despite Gehry’s involvement, Santa Monica Place “was obsolete the day it opened,” said real estate consultant Kosmont, who worked for the city of Santa Monica when it acquired the property for redevelopment as a mall. “It’s clear that open malls have surpassed the antiquated regional mall style that Santa Monica Place represents.”

Gehry was unavailable for comment Thursday.

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Times staff writer Zeke Minaya contributed to this report.