LOS ANGELES-The City Council has voted to move forward on a request for a tax break for the Westfield Group to construct a massive mixed-use complex in Woodland Hills in the San Fernando Valley.
The vote taken last week by the Council now sends the plan to the Council's Budget and Finance committee for review. The tax break plan would allow Westfield Group LLC to keep 42% of net new tax revenue generated by its Village at Westfield Topanga project, estimated to cost $750 million. The break would amount to $59 million over a 25-year period. The project is estimated to generate some $140 million in tax revenues.
The project, which has not started construction, is located at Topanga Canyon and Victory Blvd. It will connect Westfield's existing Topanga and Promenade malls and includes a 158-room hotel, a Costco and office buildings.
Westfield is offering a $100,000 contribution to the local police division, free use of the hotel meeting space for community non-profits and to hire local residents for construction and more permanent jobs. The Westfield Group has claimed the tax relief is necessary to continue the project, which it claims has a $48 million funding gap. Getting the abatement would allow it to hasten construction on the project, moving the timeline from an estimated 25 years to three years.
San Fernando Valley business groups have supported the move, as have several local unions. The Woodland Hills Homeowner Assn. has sued developers, claiming the Costco violates the Warner Center building guidelines. The lawsuit claims Costco and its planned fueling station violate the Warner Center Specific Plan by encouraging car use, and that the city violated the California Environmental Quality Act by failing to examine the development's impact.
Other developers have received tax breaks, according to a report prepared for the City Council by chief legislative analyst Gerry Miller. The developers for the Olympic North and Wilshire Grand hotels received tax breaks, with Olympic North's packaged being close to $67 million.
As previously reported by GlobeSt.com, Westfield Group funded a lavish VIP party for the opening of the new Tom Bradley International Terminal at Los Angeles International Airport a week before the City Council vote.
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