Controversial Mall Expansion Approved

The West Covina City Council early Tuesday approved a $122-million mall expansion, which has been criticized by the Los Angeles County Grand Jury and a councilman as a bad deal.

The development team of mall owner Sylvan S. Shulman and May Centers Inc., a subsidiary of the May Co. chain, asked the city to rebate more than $100 million in anticipated revenue from the expansion of Fashion Plaza. Under the agreement, the city forfeits all new property tax revenue and more than 75% of the new sales taxes from the project over the next 30 years.

The grand jury urged the council last week to negotiate a better deal. Previously, the grand jury criticized the city’s Redevelopment Agency as being inefficient and disorganized.

Studies conducted by two outside economic consultants, however, have supported the city’s contribution to the project. City officials said the expansion is required to maintain the city’s current level of sales tax from the mall, the single largest revenue producer in the city. The Fashion Plaza has experienced recent declines in sales and customer traffic.