Future of 9th and Palm Shopping Center to be Topic at Special Council Meeting

A special meeting of the City Council is set for 6 tonight (Wednesday) to consider an extension of agreements related to the construction of a Ninth Street and Palm Avenue shopping center and study of lighting on Seacoast Drive.

The special meeting was announced Tuesday afternoon by city staff, shortly before the 24-hour notification period required by law.

Click here to see what will be decided upon and discussed at the regular meeting Wednesday before the special meeting.

Among other things, agenda item 1.1 suggests the city's redevelopment agency successor agency adopt resolutions to extend agreements with Sudberry Development nine months.

An extension is necessary, city staff said, because the city is waiting for the state Department of Finance to approve a long-range property management plan and an audit required by laws passed to dissolve redevelopment agencies statewide.

“A best-case scenario for all of these actions to take occur puts final approval in May 2013,” the staff report said.

The resolutions will approve a letter to extend the agreement known as a Disposition and Development Agreement and in doing so will:

- extend a Jan. 1, 2013 deadline to give the city the option to terminate its agreement with Sudberry and pay $50,000 in damages

- extend a March 11, 2013 deadline for Sudberry to submit design, landscape and grading plans to city for approval

- extend a April 1, 2013 deadline, at which time Sudberry could terminate the DDA agreement if the project area is considered in poor environmental condition or not economically suitable for development

The letter would also extend deadlines for the close of escrow for the project's two phases and completion of construction.

There remains much to do before the Breakwater Project breaks ground.

The Imperial Beach Redevelopment Agency Successor Agency is also waiting for the state Department of Finance to approve the use of $2.2 million to make the grade of the new shopping center even with Palm Avenue.

To protect the privacy of potential tenants at the shopping center, Sudberry Properties said, negotiations have been kept confidential, however last year a representative of the company expressed an interest.

Documents released this summer related to the project state Fresh & Easy would occupy a market and take up one-third of all square footage.

On Wednesday the Wall Street Journal reported that the British-owned supermarket chain may close all its American stores.

Also on the special meeting agenda is a request by Councilman Ed Spriggs requests that the city consider a lighting study for Seacoast Drive at a future meeting.

Due to rules approved earlier this year, if an individual City Councilmember wants an item to appear on a meeting agenda, a majority of Council members must first approve the request.

This is agenda item 1.2.