City of South Gate Press Release

FOR IMMEDIATE RELEASE
January 10, 2012

PRESS RELEASE

CITY MOVES ONE STEP CLOSER TO CONSTRUCTION MAJOR NEW REGIONAL SHOPPING COMPLEX TO BE NAMED AZALEA

On December 13, 2011, the South Gate City Council approved several actions in pursuit of its vision for the future. The approvals included: 1) a resolution modifying the Firestone Atlantic Avenue Intersection Project and Declaring the City's Intention to Vacate Mason Street; 2) Addendum to the Final EIR adopted February 12, 2008; 3) Site Plan 299 for a retail development up to 450,000 square feet; and 4) six Conditional Use Permits for alcohol service, four for On-sale (restaurants) and two for Off-sale (retail outlets).

These approvals culminate a year long effort and will move the project forward in a significant way. The decisions also keep the project on schedule for a summer 2012 ground breaking.

In late January or early February 2012, this item will again be in front of Council for approval of a financing package (terms yet to be determined). The developer Primestor is asking for approximately a $12 million subsidy from the City. The property that is being developed is not in a Redevelopment Zone; therefore any subsidy will be secured with General Fund dollars. The proposal is to use the newly generated sales tax dollars from the project to pay back the $12 million dollar subsidy over a 20-30 year period. The City could be obligating up to 66% of the first 1% sales tax leaving the 1% local sales tax generated from the City's Measure "P" untouched.

The date of the Council meeting when the financing will be discussed will be published on the City's website. The City encourages everyone to come and share their thoughts with Council as the project continues to move forward.

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