HomeMy Public PortalAbout1992-03-26 Letter from Gary Chalupsky - Anaton AssocANATON ASSOCIATES
P.O. Box 10187
Newport Beach, CA 926580189
March 26, 1992
Mr. Gary A Chalupskv
Director of Economic Development
CITY OF FULLERTON
303 West Commonwealth Avenue
Fullerton. California 92632
Re: Montgomery Ward's Byback Space
Dear Mr Chalupskv
It was a pleasure for Lm, Buck and myself to meet with you to discuss the byback of a
portion of the Montgomery Ward's building With City assistance, it is our intent to place
a high volume, nationally recognized retail tenant in 30,000 feet of ground floor space on
the west side of the retail building Ward's will use the $1 million byback cost and an
additional $2 million to remodel the interior of their pare to make it consistent with their
current product presentation. It Is Ward's opinion that their new marketing strategy will
generate the same gross sales volumes from the reduced Boor space
The byback of the space would allow Anamn Associates to bring another highly promotional
tenant to the City of Fullerton increasing the "ability of Fullerton Metmcenter as well as
the retail success of the intersection of Harbor and Orangethorpe With the remodel of the
Montgomery Ward's store and the addition of our new tenant retard Usable sales, from the
existing Ward's building, will almost double
In order for Anatim to proceed with the new tenant, it is essential that we receive no less
than $1 million of financial assistance from the City of Fullerton We estimate ou
contribution to the project cost to be $2,995,000 A Project Cost exhibit is included with this
correspondence
mmlr.w „•e>a
RECEIVED
G^PI YJNi1Y LEVFL'” ' -I'
MAR 3 0 1992
AB PM
418191IOtBp211121314i5ifi
Mr. Gary A. Chalupsky
March 26, 1992
Page Two
We have also included an anticipated Gross Sales Volumes exhibit for the new tenant
during the that 10 years of the lease term. The first year sales volumes and the annual
estimated increases were obtained from the new tenant marketing department
Since we had confidence the City would support the proposed project, we commenced lease
negotiations with the new tenant and have advised our legal counsel to prepare the
necessary sublease agreement for.submntal to Ward's Our legal fees are expensive and for
that reason would ask that the City confirm their willingness to provide financial assistance
as quickly as possible Without City of Fullerton financial aswtance It will Hot he possible
for Anaton to proceed.
We thank you for your immediate attemmn to this request.
Yours very truly.
ANATON ASSOC]ATES
David Whitney
General Partner
cc Buck Jones
Jim Phelps
John Phelps
is mm l .r ay. =p
FULLERTON METROCENTER
NEW TENANT - PROJECT COST
Hard Cost
Bldg buy back fmm Wards
$
1,000,000
Contribution to New Tenant
S
350,000
Remodel of buy back space
S
550,000
Site Work
$
150,000
Facade - New Tenant
S
150,am
Facade - Montgomery Ward;
$
200,000
Additional Monument Sign
a
scam
Contingency
Total Hard Cost
Total Soft Cost
Soft Coats
A &E 6q
S
1b0,oal
Legal
$
75,000
Consulting Engineers
S
20,000
Permits
$
10,000
Appraisal
S
10,000
Loan Pt Fees
S
60,000
Interest
S
110,000
Contingency
70000
Total Soft Cost
Total Project Cost
Is mml'e a
$ 2,450,000
$ 535.000
S 2985.000