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BURBANK — Moving to correct what was called a legal oversight, the Burbank City Council has formally endorsed a redevelopment deal giving mall developer Alexander Haagen $120,000 in sales

tax revenues so far and more in the future. Under a 1993 agreement, Haagen built two stores and one restaurant near the Media City Center mall and received in return the city’s share of

sales taxes from those operations over 15 years. Since then, city officials say the Burbank Redevelopment Agency has paid Haagen $120,000 generated by the businesses, but without the

explicit consent of council members. On Tuesday, Burbank City Council members--who also head the Burbank Redevelopment Agency-voted 4 to 1 in support of a new agreement that City Atty. Joe

Fletcher says he did not have time to draft until now. Mayor Bill Wiggins called the action “a formality.” The council action enables city officials to dig into Burbank’s general fund for

money the redevelopment agency can use to pay Haagen. In turn, the city can demand to be paid back at any time if the agency has the money to do so. Councilwoman Susan Spanos dissented,

saying she needed a proper analysis of the proposal before voting. “We have a quite able and extensive legal staff,” she said. “I’m not prepared tonight to approve a resolution on an

obligation . . . when we don’t have legal analysis about it from our city attorney’s office.” The redevelopment agency is required to give Haagen, developer of the Media City Center, an

amount of money equal to the city’s share of sales taxes from Office Depot, Circuit City and El Pollo Loco over 10 years. It is also obligated to hand over 50% of those revenues for the

following five years. An official with Haagen’s firm had previously told The Times that the sales taxes from the three sites is estimated to be about $300,000 a year. Also at issue Tuesday

was whether any transfer of sales taxes revenues from city coffers to the redevelopment agency ever took place. Burbank Financial Services Director Al Holliman maintains that the transfers

were never made, despite a staff report showing the city handed over unspecified amounts of sales taxes twice to the redevelopment agency in September and October. Under the Burbank City

Charter, council members must vote on whether to appropriate any city funds for specific uses, such as giving Haagen sales tax revenues. Fletcher contends that the council already voted in

favor of allocating the money when Burbank’s proposed budget was approved in June. “There is no issue,” he said. But City Hall observer Ted McConkey disputed that point, saying that a

separate vote by the council was required before Haagen could received the sale tax revenues. “People tend to think that because the same people sit on both agencies, the actions of one are

binding on the other,” he said. “They have separate budgets, make separate agreements. “You can’t just give away money without the council vote. Money that flows into the general fund

belongs to taxpayers and the citizens of Burbank.” MORE TO READ