The city of Burbank has approved the sale of a 6.4-acre lot that is the site of its downtown Ikea store, moving the retailer one step closer toward opening a new store twice as large.
The city’s Successor Agency Oversight Board, created to dispose of redevelopment properties, approved the sale of the 600 San Fernando Road property as part of a complicated deal that will see the retailer vacate the property and open a 470,000-square-foot store just south of downtown.
Crown Realty and Development Inc. of Irvine, the owner of the nearby Burbank Town Center mall, has agreed to buy the store and property for $1.3 million. It has not disclosed its plans for the site, but there has been talk Crown might expand the indoor mall onto the property.
The Ikea sale, however, still needs to be approved by the state Department of Finance, since the property was owned by the city’s redevelopment agency. The department was given final say over the disposal of municipal redevelopment properties statewide in the 2011 law that disbanded local redevelopment programs.
Ikea, controlled by Ingka Holding of the Netherlands, originally announced its plans to relocate in November. The retailer would like to open the store in 2016.