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Town Center deal falls apart

April 01, 2004

Josh Kleinbaum

With one short sentence, developer Rick Caruso delivered a tumultuous

ending to the controversial Town Center project, walking away from a

$5-million investment and thousands of hours of work.

"We will withdraw our permit, and our interest ... has ceased to

be involved on this project," Caruso told the City Council late

Tuesday.

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Just like that, the $264.2-million Town Center -- arguably the

city's most important project in a quarter-century -- died, sending

shockwaves throughout City Hall and splintering the City Council.

The project, a proposed 15.5-acre commercial and residential

campus in downtown Glendale, collapsed due to a seldom-used provision

in the city charter that could require unanimous approval for zoning

changes. The council considered an alternate process Tuesday that

would require a simple majority to approve the changes, which include

lowering housing density and raising the height limit of buildings

for the Town Center.

The council never actually took a vote -- Councilman Dave Weaver

stormed out of the meeting before the opportunity arose -- but three

members said they would not support the alternate plan, arguing that

it circumvented the spirit of the city charter.

"To me, this has nothing to do with what this project is,"

Councilman Bob Yousefian said. "It has everything to do with this

document called the charter of the city of Glendale. I stood here

three years ago and took an oath to uphold the charter of the city of

Glendale. I was telling the truth."

The problem lies in Article 15, Section 2 of the city's charter,

which says that any zoning change must be unanimous if the property

owners of 20% of fronting property oppose the change. General Growth

Properties, which owns the Glendale Galleria, opposed it. The

Galleria is adjacent to the Town Center site, so General Growth, with

the support of anchor tenant Robinsons-May, could have blocked the

change.

Yousefian, Mayor Frank Quintero and Councilman Gus Gomez would not

support the alternative. Quintero opposed the project altogether,

while Yousefian and Gomez said they objected to changing the process,

not to the project.

Weaver and Councilman Rafi Manoukian supported the alternative

process, and blasted their colleagues for abandoning the project.

"After three-and-a-half years of work, a lot of hours on the part

of everyone -- the council members, the developer, city staff and

community members -- it's unfortunate that this project falls on a

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