Furniture mart’s competition with locals questioned

Diana Sahagun

Friday, July 12, 2002 | 9:49 a.m.

A final development agreement for a proposed furniture mart downtown is fast approaching, but Mayor Oscar Goodman said he has some reservations before signing on the dotted line.

At his weekly press conference Thursday, Goodman said he has concerns about how the project's proposed retail component would affect nearby businesses, especially a high-end retail outlet mall being built by Chelsea Property Group.

"We have issues that have to be worked out," Goodman said, noting that nearby retailers are concerned about the proposed furniture mart west of downtown.

City officials declined comment on the final development agreement -- which is scheduled to be heard at the council's Wednesday meeting -- saying Goodman had not yet been briefed on the topic. Goodman has been in Washington all week on Yucca Mountain business.

But attorney Mark Fiorentino -- representing the furniture mart developers and Chelsea Property Group -- said he has heard no concerns from Chelsea. He acknowledged that officials from nearby Walker Furniture have publicly expressed theirs concerns with the project's possible effect on its business.

While the furniture mart will market manufacturer wholesale merchandise to retail industry buyers, inventory may be available to the public at the end of wholesale shows, Fiorentino said.

Fiorentino said the final development agreement includes a provision that the developers will not seek a tax break for any portion of the project used for retail.

The council in November approved granting the developers a 50 percent property tax rebate over the next 20 years, estimated to be about $40 million. The final step before the project goes forward is approval of the final development agreement.

The project is proposed to open in phases. The council in May approved the first phase -- a 10-story, 1 million-square-foot showroom. Construction on this phase should begin by the end of the year, with an opening in 2004.

The project will ultimately include 7.5 million square feet of space on 57 acres by 2007.