The City Council, acting as the city's Redevelopment Agency, has unanimously approved a 25-year contract with the Price Club under which the company will move to Norwalk in exchange for a rent-free package worth $4 million.
Under the contract, the city will refund to the Price Club half of the expected $800,000 in annual sales tax revenue that the firm is expected to generate, or up to $4 million over the life of the contract. The firm's annual rent is $400,000, to be paid to the Norwalk-La Mirada Unified School District, which owns a closed elementary school on Hoxie Avenue that the firm is moving to.
The Price Club plans to demolish the school and build a 112,000-square-foot building on the 11-acre site, Redevelopment Agency Director Mike Wagner said. The Price Club plans to open the store next November, Wagner said.
The contract also calls for the firm to do $100,000 worth of landscaping at the site and $150,000 worth of widening on Hoxie Avenue, Wagner said.