Theater plan moves forward without incentive clause

The front portion of Menifee Town Center is dark and vacant except for lighted signage. Menifee 24/7 photo: Doug Spoon

By Doug Spoon, Editor

It depends on who you’re talking to, but it appears the Krikorian Theater project in Menifee Town Center is moving forward without the incentive clause previously discussed.

“We’ve done everything on our end,” George Krikorian, head of Krikorian Premiere Theaters, told Menifee 24/7 this week. “The city is going through final plan checks. There will be a few minor corrections, but within a few weeks we should be able to start pulling permits.”

Although he said he sees no major obstacles in moving ahead with plans, Krikorian acknowledged that he was previously offered a monetary incentive from the city and that the issue “is still up in the air. It’s unresolved.”

It is not uncommon for cities to offer incentive packages such as tax revenue sharing to entice the potential anchor of a large development or to move up the timetable of a project. Menifee City Manager Armando Villa said city officials were in negotiations last year for an incentive package that would total about $1 million.

Villa said the incentive clause is now off the table, however.

“We can’t force Mr. Krikorian to hurry up and finish his schedule unless we participate in financing the project,” Villa said. “We originally considered an incentive package to get him to build faster. At that time, we were still thinking we needed it.

“Now it’s a new economy. There’s a very successful new center across the street. Now developers are coming to us. We are no longer interested in incentive programs.”

Krikorian said he had no comment regarding Villa’s statements, saying he preferred to “keep things positive.”

“A lot of departments are involved in this process and everyone has done their due diligence,” he said. “All our work is done. We’re just waiting to get our permits. We have no control over that process.”

A groundbreaking date remains anybody’s guess. Villa said plans for the entire building complex, the theater itself and the surrounding retail pads acquired by Krikorian are in plan review and that the theater plan process is about 80 percent complete. Krikorian submitted grading plans, building complex plans and theater plans separately. There are also plans for electrical, sewer and other facilities being reviewed as standard procedure.

“There are six or seven types of plans we have to review,” Villa said. “All those are well on the way. You have to remember that the developer needs approval on their end. They have to secure loans, go into escrow, hire architects … some are more in a hurry than others.”

It has been about three years since Krikorian signed an agreement with developer Regent Properties to purchase land for a 12-screen theater complex, bowling alley and entertainment center. Later, the original tentative plans were revised when Krikorian bought additional land for retail pads surrounding his project.

In January 2017, city officials announced a $1 million revenue sharing agreement that will help bring a Fairfield Inn & Suites to the Menifee Town Center. Villa said it is likely construction on the hotel will begin before theater construction does.

“The hotel project is five spots higher in the process than the theater,” Villa said.

Villa acknowledged that the city also made an incentive agreement three years ago to entice Applebee’s restaurant to come to town, and that “we have already gotten that back.” Is it still possible that the city would offer another incentive in the future?

“Well, I guess if Nordstrom’s came to us and said they needed a subsidy, we would look at that,” he said. “We don’t intend to look at that strategy in the future unless there is a verifiable economic benefit to the city.”

Meanwhile, Villa continues to explain to residents that the timeline of the Krikorian Theater project has not relied solely on the city’s planning department.

“The perception is that we are the one who builds things,” he said. “The reality is, we issue permits, regulate and sometimes incentivize. It’s hard to convince people that you often have a hard time getting all your ducks in a row in a process like this.”