Council approves project development agreement for ‘Canopy’ retail at Great Park

The City Council approved a project development agreement (PDA) with Almquist Development (the developer selected earlier as Elmquest in RFQ process) to deliver the second‑phase “Canopy” retail project adjacent to the Great Park. The vote was 6-0.

Why it matters: The project aims to provide neighborhood‑serving retail, a grocery anchor, food-and‑beverage offerings and public open space directly adjacent to the Great Park, with the city preparing pads and shared infrastructure to encourage private investment.

Project overview: Assistant City Manager Pete Carmichael and Great Park staff described a two‑phase project. Phase 1 (private Almquist parcels) includes a grocery‑anchored neighborhood center. Phase 2 (about 10 acres on city property) would focus on food & beverage, reuse of existing hangar buildings and pop‑up retail, new parking and extensive landscaping. Phase 2 would be delivered under a 30‑year lease with three 10‑year extension options.

Financing and terms: The city would issue bonds to construct pads, utilities, parking and some park improvements at an estimated cost of about $14 million; Almquist would pay principal and interest via an annual ground lease payment estimated at about $1.3 million based on current rates. The agreement includes a revenue participation clause (city share if gross revenue exceeds $17.50 per lease square foot) and would yield an estimated net city revenue of roughly $50 million after payment of debt service over the lease term, according to staff’s financial model. Almquist would be responsible for vertical construction, tenant improvements, operations, leasing and on‑site maintenance.

Schedule: If the council directs, staff expects financing terms to return in the fall; the PDA conditions and lease would be finalized in winter 2025–26 with construction targeted to start after lease execution and be completed within 36 months; estimated opening late 2026 or early 2027 for Phase 2.

Council discussion and vote: Councilmembers thanked staff and the developer for outreach and asked about performance and programming (staff confirmed a small performance/stage area overlooking the park). The council authorized the city manager to finalize the PDA and the form of the lease for the Canopy project by a unanimous 6-0 vote.

Ending: Councilmembers noted the project will better serve Great Park visitors and nearby residents and asked staff to return with final financing documents for council approval before bond issuance.