Sale expected to generate business

Jennifer Kho

COSTA MESA -- Cheerful city leaders say plans to use the long-vacant

Pacific Federal Savings Plaza as office space could give downtown a

welcome infusion of life.

“I’m excited that a sale is in the works,” Mayor Libby Cowan said.

“I’m looking forward to that particular corner of our city being up and

operating with a little bit of life. I think it is a great thing for our

community and will help revitalize that downtown core.”

After almost a decade of sitting empty at the corner of Newport

Boulevard and 19th Street, the Spanish-style building is getting a new

owner, Pasadena-based Hudson Properties LLC.

The property’s owner, Los Angeles businessman Nickolas Shammas, and

Terry Tornek, manager of Hudson Properties LLC, said they would not

discuss the sale or disclose the sale price until after escrow closes,

scheduled for March 7.

However, the last interested buyer -- the city -- was haggling with

Shammas over a $30-million price tag when talks ended in May.

Regardless of the price, the sale is expected to pump money into the

city’s coffers and into the cash registers of nearby businesses.

Don Lamm, deputy city manager and director of development services,

said the city will probably gain property tax revenue from the sale,

because the price is almost certainly higher than the price Shammas paid

for it in 1991.

Ed Fawcett, Chamber of Commerce chief executive, said he thinks the

sale will ultimately benefit the area by bringing in customers for other

downtown businesses.

“I look forward to having something over there and, if it’s viable

office buildings, more power to them,” he said. “As a vacant building,

it’s been a sore spot to the community that hasn’t contributed to the

rebound we have seen in other areas downtown.

“This will be, once they reconvert and lease the space, a boon to all

the other businesses downtown. I think having an office building in that

corner will be the ideal situation because it will not be competing with

everybody, but will be supplying consumers,” he added. “That’s the key to

success.”