First, the second phase of Midtown Crossing took a step forward, and now a second major project--a six-acre development with a Target, yes, yet another Target--is planned for City Councilman Herb Wesson's district. Local firm Charles Company, which is developing the project, wants to put up a mall containing a Target, a Ralphs, Marshalls, Dress for Less, and other retailers at the corner of Crenshaw Boulevard and Rodeo Road, just blocks from the famous West Angeles Church of God In Christ. And it's just blocks from the planned Expo Line. If approved by the city--the City Council will vote on this Target mall project on Friday--construction would start by November, a rep for Charles Company told a City Council subcommittee this morning.
The three story structure would be a cake that works like this: Ralphs on the bottom, Target, parking on top, retail (including a Chuck E Cheese) sprinkled all around. The financing agreement would be a recipe that works like this: The city would provide a $22.674 million HUD loan, and $6.5 million in CRA funds, roughly 30 percent of the whole $93 million budget.
Meanwhile, roughly half of all the sales tax generated by the project would go back towards helping pay off the loan--instead of back to the city-- the same financing arrangement seen on the Midtown Crossing Phase II deal.
The revenue sharing deal is a scenario that some people have been critical of since the city doesn't get 100 percent of the sales tax revenue. If the developer did the deal on his own, the city would get all of the revenue. But Andrew Westall, assistant city deputy in Wesson's office, says there would be no deal at all if the city wasn't stepping in. "It's an area that hasn't seen its heyday since the 1970s," he said. "This is a catalyst project, to encourage and foster [more development]."
Additionally, he points out that Charles Company hasn't done many partnerships with the city. "It's one of the first CRA projects I can recall," he said. Meanwhile, the existing Ralphs (seen in gallery) would be destroyed for this project.
· Target Archives [Curbed LA]
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