02-01-2005 - Update on Quail Ridge Shopping Center Renovation• City of West Covina
Memorandum
TO: Andrew G. Pasmant, City Manager
AGENO A
and City Council ITEM NO. C4
FROM: Douglas N. McIsaac, Planning Director DATE February 1, 2005
SUBJECT: UPDATE ON QUAIL RIDGE SHOPPING CENTER RENOVATION
RECOMMENDATION:
Staff recommends that the City Council receive and file this report.
DISCUSSION:
This matter was carried over from the January 18, 2005 meeting. On January 4, 2005,
Councilmember Hernandez requested an update report on the status of the proposed
renovation of the Quail Ridge shopping center located at the northeast corner of Nogales
Street and La Puente Road.
On November 9, 2004, the Planning Commission granted a three-month extension of the
project entitlements until February 9, 2005. At that time, Douglas Jacobsen of Realty
Bancorp Equities, the project developer, presented a letter from the Albertsons Corporation
indicating that they were optimistic that formal conclusion could be reached, on a business.
transaction within the next two months (copy attached). According to Mr. Jacobsen, the
approval from Albertsons (parent company of Sav-On Drugs) to proceed with the
construction of a new building for Sav-On was the cause of the delay to that point and the
remaining issue that needed to be resolved in order to proceed with the project.
At this time, according to Mr. Jacobsen, corporate approval from Albertsons has j',been
obtained to proceed with the construction of the new Sav-On drugstore building. Final
completion of the.paper work is expected soon, and Realty Bancorp is hopeful that this can
be accomplished and grading permits for the project can be issued prior to the current
expiration of the project entitlements on February 9. According to the construction
manager for the project, once permits are issued, the first step would be the demolition of
the former Sizzler restaurant and bank building on the property. This will take
approximately three weeks to complete.
Planning Director
Attachment: Letter from Albertsons dated November 8, 2004
Z:\City Council\SFRPTSDM\Quail Ridge Update.2.1.05.doc
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November 8, 2004
ALbEHISONS SAVON
Mr. Douglas Jacobsen
Director of Development
Realty Bancorp Equities
21800 Burbank Boulevard
Suite 330
Woodland Hills, CA 91367
NO.0800 P. III
ATTACHMENT 1
,vherrsong
Via Fax (818) 251-9912
RE: Proposed Sav-on Drug Store
Quail Ridge Shopping Center; 3620-3670 South Nogales Street, West Covina
Conditional Use Permit 01-10 & 01-12
Dear Mr. Jacobsen:
I understand that the City Council has graciously extended your Conditional Use Permit
(Conditional Use Permit 01-10 & 01-12) for our proposed West Covina project on a number of
occasions. I am hopeful that your request for an extension from the Planning Commission at
Tuesday night's meeting will be successful. Although I have not yet received a formal approval
from the Albertsons/Sav-on senior management, I am optimistic that within the next 2 months,
Albertson's will be in a position to officially indicate its willingness to proceed with our
transaction. Our commitment to you, and to the City of 'West Covina, is very important to us.
Your willingness to work with us over the past 11 months to find an acceptable solution has been
much appreciated by Albertson.
Thank- you for your continued support of this project.
Sincerely,
Michael Reed
Real Estate Manager
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ALBERTSON'S, INC, / 1421 SOUTH MANHATTAN AVENUE / FULLERTON. CALIFORNIA 92831-6221
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NO
January 13, 2005
Mr. Doug Jacobsen
4733 Westchester Drive
Woodland Bills, CA 91364
Re: Sav-on #9748, IA Puente & NogaIes, West Covina
Dear Doug:
Thank you for your patience and perseverance in working through the issues associated with our
West Covina transaction. I am very happy to report that Albertson' Executive Management has
given us the approval we need to proceed with our transaction. An alloiney in our corporate
office is currently working on the documentation. 1 expect to work through the documentation
phase with you in the immediate future, so we can proceed with constracdon. 11
Yours truly,
A,LBERTSONS, INC.
James E- Hanson
Real Estate Manager