Money matters threaten new Target
Nearly eight months have gone by since a proposal to build a new Target store on the western end of Simi was approved by the City Council, yet the site with the vacant Kmart is unchanged.
It appears residents will have to wait even longer for the store's grand opening, as Target Corp. is appealing to the city for relief from some of the costly conditions put on the project at the time it was approved.
"They're coming back and they're asking for us to change some of the requirements on their project," said Councilmember Michelle Foster. "They're asking for us to make exceptions to our city code."
The council unanimously approved construction of the store on the northwest corner of Madera and Tierra Rejada roads in August after months of discussions between Target officials and city planning staff. At that meeting council members said they were eager to see the revitalization of what has been considered a blighted area in the community.
Target was ready to start building, too. When the project was approved, representatives said they hoped to have the new store open by early 2010.
However, the economy has changed the company's plans.
"Target is not exempt from the impact of the current economic conditions," said Anna Anderson, spokesperson for the retailer. "We are taking appropriate steps to manage our business in these difficult times to ensure profitable growth."
Anderson said that in the past, Target opened about 100 new stores a year. The company is planning to build about 75 in 2009 and fewer than 30 in 2010, she said.
At the April 6 City Council meeting, Councilmember Steve Sojka acknowledged that the economy has changed things for developers, but said he doesn't want to sacrifice the quality of the Target project.
"They're looking for ways to cut costs and . . . we don't cut costs to where we get a project we don't want," he said.
According to Assistant City Manager Brian Gabler, director of economic development, Target is asking for a 50 percent reduction in landscaping, a 75 percent reduction in city fees and the elimination of some of the building's architectural features. This includes removing one or more tower elements and some rooflines.
"They're looking to reduce the aesthetic appeal of the building," Gabler said.
Target is also seeking to get out of their agreement to do off-site improvements on Madera Road that include the installation of a traffic signal at Strathearn Place, a southbound right-turn lane and two bus turnouts.
In addition, Target doesn't want to underground the utility lines running behind the store or pay for their portion of the storm drain improvements Casden Properties is undertaking on Madera Road, Gabler said.
"Their bottom line is they are looking for about $2 million in relief," he said.
Foster said the offsite improvements are important infrastructure issues that any developer of the Kmart property would have to deal with and that the city is not asking for anything out of the ordinary.
If Target doesn't resolve the issues as part of their project, she said, that puts the responsibility back on taxpayers.
"If we waive the requirement from them, at some point when it needs to be done, who's going to pay for it?" Foster said. "Fundamentally, there are issues they are bringing to the table that we have no choice but to keep in place because that's how the community gets developed."
The council members are hesitant to change the design, noting that the economy will eventually turn around and that residents deserve a building that doesn't look like it was built during a recession.
"I have some major reservations about relinquishing that design," Councilwoman Barbra Williamson said. "If we allow Target to do a mediocre building now, what's it going to look like in 50 years? We can't cut corners."
Mayor Paul Miller said he's unsure whether the council would be willing to diverge from the original design plans.
"I think the overall project looks good and once you start taking it apart you don't know what you're going to get," Miller said. "We liked it as a package."
The project at 51 Tierra Rejada Road includes a 143,828squarefoot Target anchor store. Plans also call for 9,200 square feet of shops adjacent to the east side of the building facing Madera Road and the remodeling of another 7,700 square feet of existing retail space on the west side.
The project could be in jeopardy if the city and Target are unable to reach a compromise.
"We will continue our discussions with the city to uncover all viable options," Anderson said. "There are currently a variety of options that are on the table; however, at this time, it would be premature to confirm those specific options and the direction this project is going to take. In the end, if we are unable to reach a financially feasible solution, we will be unable to bring a Target to Simi Valley."
Target representatives have said the store would employ about 250 people.
Regardless, Councilmember Glen Becerra said the city must ensure the best building possible is built since it will be there for many years.
"Our job is to get that project done and not shortchange the community," he said. "I'm an optimist in this, and I believe the economy will improve and eventually that store will get built and it will be a beautiful, productive store for both the Target Corp. and the community."
If Target decides to formally request changes to the project, the company would have to file an application for a modification to the planned development approval. That application would go first to the planning commission, Gabler said.
The City Council will then likely appeal the commission's decision, as it did last year, in order to have the final say, he added.


