The City Council, acting as the city Redevelopment Agency, approved $7.75 million in bonds Monday for a garage facility at the Lakes at West Covina project despite objections from one councilman who opposed the terms of a repayment agreement with the developer.
Under the agreement, the city will contribute up to $2.4 million for the bond service payments by Watt Investment Properties Inc. of Santa Monica, which is developing the first phase of the project. Watt has agreed to repay the city's contribution, plus interest, with proceeds from the sale or refinancing of the property, which is expected within the next 10 years.
Councilman William Tarozzi said the agreement does not provide adequate protection of the city's contribution, leaving West Covina liable if the development fails. But Councilman Robert Bacon, saying the risk to the city is minimal, argued that the city's contribution was vital if the long-delayed project is to be built.
Envisioned as the largest redevelopment project in the San Gabriel Valley, the Lakes project would include four office buildings, retail shops, a six-screen cinema and a 300-room Marriott hotel amid 1.5 acres of reflecting ponds.