Council defers Gran Plaza fee
CALEXICO — Phase 2 development of the Gran Plaza Power Center was given a jumpstart by the Calexico City Council on Tuesday, following a 4-1 vote that allowed the mall’s developer to defer a $452,000 payment to the city for 90 days.
The plan check and inspection fee deferral will also allow the developer, Bordertown Investments LP, to soon begin rough grading at the 100-acre site directly west of the existing outlet mall.
The fee deferral was sought by Bordertown Investments while it is in the process of securing additional tens of millions in construction financing, said City Manager Armando Villa.
Developers are hoping that rough grading of the site can start before burrowing owl nesting season begins in February, Villa said. Failure to secure the $452,000 fee deferral would have delayed overall construction by up to five months as a result of the owl’s nesting season, he said.
Several council members expressed concerns that the fee deferral comes at a time when the city has been struggling to make ends meet and sought assurances that the deferment would not negatively impact the city’s already strained finances.
“There would be no out of pocket expense,” Villa said.
The council’s special meeting vote Tuesday also authorized Villa and the city attorney to negotiate terms that would allow the city to recoup the money if the developer fails to pay after 90 days.
Litigation against the developer was one likely option to recoup any fees that may fail to turn up, said interim City Attorney Carlos Campos.
Failure to pay the $452,000 after 90 calendar days would also likely result in the developer being denied additional grading and construction permits to move the project forward, Villa said.
Prior to her vote against the resolution, Councilwoman Maritza Hurtado questioned why Bordertown Investors did not already have the $452,000 fee payment at its disposal, considering they were slated to invest about $30 million in the overall expansion project.
She also questioned why the developer waited until now to move forward on the project, after having sat inactive for the better part of a year.
Lastly, she also echoed sentiments that were critical of the fee deferment’s overall effect on the cash-strapped city and employees who recently agreed to significant salary cuts.
“It’s really bad timing to ask for these types of concessions,” Hurtado said.
No Bordertown Investments representative was in attendance at Tuesday’s special meeting.
The developer is also currently working with city officials to determine whether public or private financing can be obtained for the project, Villa said.
One possible financing option is the establishment of a community facilities district (CFD), which would levy a tax to help pay for construction and infrastructure costs, Villa said, noting that the feasibility of such a possibility would not likely be known for a few months.
Prior to the council’s vote, Mayor Armando Real urged his colleagues on the council to realize the significant role Gran Plaza expansion will likely have on future tax revenues in the city.
At the moment, the city doesn’t appear to have any proposed or pending large scale economic development projects and it would be a mistake to throw up barriers for the Gran Plaza Power Center developer.
“If we lose that mall I doubt anyone else will knock on our door to put millions in our pocket,” Real said.