The Los Angeles City Council will consider a tax break for Westfield Group LLC at its Wednesday meeting that could save the mall developer up to $59 million over 25 years.
The proposal, if approved, will allow the Australian company to keep 42 percent of net new tax revenue generated by its Village at Westfield Topanga project, as an incentive for the developer to speed construction of the sprawling $750 million project.
The project will connect the Westfield Topanga and Westfield Promenade malls and includes a 158-room hotel, a Costco and office buildings. However, it has been tied up in litigation for more than a year by the Woodland Hills Homeowners Association, which argues the Costco violates Warner Center building guidelines by encouraging car use.
The project is expected to generate $140 million in tax revenue over the next 25 years, and add 1,600 permanent jobs, according to the city staff report, which was called for by Councilman Dennis Zine, whose district includes the mall property.
In exchange for the tax break, Westfield is offering a community benefits package that includes a $100,000 contribution to the local police division, free use of the hotel meeting space for community non-profits and a promise to hire locals for the construction and permanent jobs.