The Sunnyvale Sun

News

Mall development may start soon

By JASON GOLDMAN-HALL

Almost exactly a year after heavy machinery took the first bites out of the dilapidated Town Center Mall parking structure, the project may finally be back on track after a series of closed-door meetings between the city of Sunnyvale and Fourth Quarter Properties XLVIII LLC.

According to a statement from the city, the Atlanta-based developers have agreed not to pursue changes to the project that could have added a boutique hotel and 200 more housing units at the cost of additional time spent on public hearings and general plan amendments.

The announcement also comes after more than half a year of delays, which have turned what was goodwill toward the developers--for finishing the first stage of development quickly and quietly--into anger and resentment from residents, merchants and local leaders.

On March 8, the city notified Fourth Quarter of its breach of contract for not having kept up with the schedule of the project. Fourth Quarter failed to obtain approval for a new map for the project, failed to submit construction plans and failed to get construction permits by Sept. 1, 2005. It also failed to apply for construction permits by February of this year, and failed to commence construction by the beginning of the year.

For a time, Sunnyvale communications officer John Pilger and Mayor Ron Swegles both said the city was prepared to rebid the project should Fourth Quarter not come up with a satisfactory remedy.

According to Pilger, Fourth Quarter has agreed to essentially the same project. Within weeks, the city expects the developers to present a revised construction and demolition schedule as well as discuss minor changes to the plan.

Even with "cautiously optimistic" as the city's new buzzwords, other residents are reserving judgment.

"I'm happy to see it going forward, but I'll wait to see ground broken," said Il Postale owner Joe Antuzzi, whose restaurant looks out onto the Macy's parking lot. "I wasn't really happy with the way the project was approved in the first place, but this is better than the three or five years it would have taken if the city put the project back out for bids. I just hope the city doesn't give anything else away with the 'minor changes.' "

As it stands now, the project will include--as has always been intended--292 housing units, a quarter-million square feet of office space and one million square feet of retail space anchored by the existing Target and Macy's stores.

Menlo Equities' Jane Vaughan, acting as project manager and spokeswoman for the project, has not returned repeated calls from the Sun requesting comment in recent weeks.