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Rusnak Deal Back in Motion

The City will once again attempt to strike a $2.8 million deal to sell a 2-acre site to Rusnak Arcadia. The deal would mean an extra $800,000 a year in sales tax for the next decade.

The city has approved a long-range property management plan that may allow a stalled deal to expand Rusnak Arcadia to move forward.

In 2011, Arcadia’s former Redevelopment Agency acquired the last parcel of a two-acre site it had intended to sell to Rusnak for $2.8 million as part of the dealership's decades-old plan to build a 40,000-square-foot showroom on Santa Anita Avenue.

However, the deal, which would have ensured Arcadia receives an extra $800,000 a year in sales tax for the next ten years, had remained contingent upon redevelopment funds. The state Supreme Court handed down a decision a year ago that dissolved all Redevelopment Agencies, putting a wrench in the plan.

"There's a lot of hoops we have to go through," City Manager Dominic Lazzaretto said.

As the designated successor agency, the City Council has taken over all the former Redevelopment Agency’s assets—including the 2-acre parcel. But before the city can sell the land, an oversight committee and the state's Department of Finance must approve the property management plan.

Lazzaretto says he feels hopeful the plan will be approved, though it may take some time.

Rusnak could not be reached for comment.

Patch will continue updating this story as it unfolds.

 

Mark Villalovos December 14, 2012 at 02:57 AM
Question: Does this deal involve the closing of our favorite diner - Rod's Grill? If so, I strenuously object to this move!

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