Officials said the agreement was the result of more than a year of talks between the city and the grocery store chain. Under the proposed agreement, the company would pay $220,000 rent annually.
“We are at the point where we are ready to move ahead very quickly,” said Douglas Yokomizo, vice president of real estate for Trader Joe’s Company.
Officials said that the finalized lease agreement should come back to the dais in a few months, and that the design process should start shortly.
Dale Dawson, president of the Montrose Shopping Park Assn., spoke strongly in support of Trader Joe’s, which he said would be a much-needed draw and economic stimulus for the entire shopping park.
“It would give our clientele a more consistent rather than occasional reason to visit the Montrose Shopping Park,” he said.
Dawson added that the store would help to revitalize the 2400 block of Honolulu Avenue, where retail stores struggle to survive because of the lack of foot traffic.
Demand for an “anchor tenant” in the shopping park arose during a 2007 city-sponsored outreach effort, which showed strong residential interest in a grocery store, such as Trader Joe’s, to come to the 2400 block of Honolulu Avenue, according to a city report.
City officials approached Trader Joe’s Company, which indicated interest in a possible Montrose location. In December, the city and grocery store chain signed a nonbinding letter of intent to lay the groundwork for future negotiations.
It is unclear what the potential new location will mean for the Trader Joe’s on Foothill Boulevard in La Crescenta.
With Trader Joe’s moving ahead, Councilman Dave Weaver had his eyes on bringing another well-known name to Montrose.
“The only thing we need to do next is bring Bob’s Big Boy to Glendale,” he said.