Seven years after making a proposal to build a $500 million open-air, high-end, 825,000 square-foot retail center on 51 acres of the parking lot of the Santa Anita Park race track, developer Rick Caruso has withdrawn from negotiations with track owners.
A representative from Caruso confirmed to ArcadiasBest.com today (Friday, May 20) that reports about discussions ending with Santa Anita owner, Canada-based MI Developments, for the proposed Shops at Santa Anita are true, at least for now. Neither Caruso Affiliated or Santa Anita Park would comment, with MID expected to release a statement next week.
The original 50/50 partnership agreement between the two companies was dissolved last year by track owners during a reorganization under bankruptcy protection that was initiated in March 2009. Talks between Caruso and MID owner, auto parts magnate Frank Stronach, had continued off and on since then, but Caruso claimed in April 2010 that MID/Santa Anita owed Caruso Affiliated $21 million, which had become a sticking point, according to The Daily News and the Los Angeles Business Journal. The joint venture reportedly spent $25 million during the process that ended abruptly this week.
“It is truly a shame when a corporate citizen in our community does not give any consideration to their actions or in this case their lack of actions and what the consequences of that will be to Arcadia,” Arcadia City Councilman Mickey Segal told ArcadiasBest.com. “Mr. Stronach has dragged his feet and not delivered on his commitment to develop the propeerty and that will now create a tremendous shortfall of revenue for our city for many years to come. I respect his rights as a property owner but not to the total detriment of all residents.”
The Shops at Santa Anita was unanimously approved by the City Council in 2007 but was immediately challenged in lawsuits by neighbor Westfield Santa Anita and its community advocacy group Arcadia First! That legal battle continued for two years and was still in full swing when Santa Anita was taken into bankruptcy protection two years ago.
— By Scott Hettrick