San Diego’s iconic Westfield Horton Plaza is poised to undergo its most dramatic transformation since the downtown shopping center opened its doors to great fanfare in 1985. Under a $35.1 million owner participation agreement between Horton Plaza shopping center owner Westfield and the redevelopment agency of the city of San Diego, Westfield will demolish the former Robinson-May building and transfer to the city an approximately 37,000-square-foot upgraded land parcel, with an expansion to the historic Horton Plaza Park, located on south Broadway between Broadway Circle and Fourth Avenue. The San Diego City Council, sitting as the city’s redevelopment agency, voted unanimously on Jan. 11 to approve the agreement, which planners say will bring a world class urban plaza that would create a central gathering place similar to Union Square in San Francisco or Pioneer Courthouse Square in Portland, Oregon. “I think this will be a benefit not only for businesses in the plaza and surrounding area, but a huge and important amenity for our residents who have invested a lot of their hard-earned dollars,” said City Council president pro tem Kevin Faulconer of District 2, who has been a strong proponent of the project. “They believe in downtown San Diego and I think we have to keep making improvements to keep this economic engine going.” In return, the city agrees to terminate an existing payment agreement under which Westfield shares with the redevelopment agency a percentage of the annual gross revenues from the retail center stores and parking facilities. Westfield will prepay in full the estimated value of the revenue stream that was scheduled to terminate in August of 2036, which an official said is worth approximately $1.8 to $1.9 million per year. The plan calls for the redevelopment efforts to be completed ahead of the Horton Plaza Redevelopment Project Area’s expiration in 2013. Westfield will further operate and maintain the site for a period of 25 years and promises to stage more than 200 community-oriented events annually such as farmers markets, movies, craft fairs, concerts and holiday celebrations. In addition, Westfield will make a $1 million contribution to the city for operations of the Balboa and Lyceum theaters and a future homeless shelter. Eli Sanchez, senior project manager for the Centre City Development Corporation, which is under contract to implement San Diego’s redevelopment plans at Horton Plaza, said the project will be a catalyst for the area. “By tripling the size of the park and opening it up to what’s happening downtown creates a whole new space for people to come and enjoy themselves on a regular basis,” Sanchez said. “I think the significance comes from the fact that there isn’t anything going on there and it is a poorly-used space.” The 130,000-square-foot Robinson’s May building has sat mostly empty since the retailer vacated the premises in 1994. Attempts have been made over the years to revitalize the site, which had been home to a Planet Hollywood until 2001, Cinema Theatres and its current tenant, Sam Goodies. “The advantage is we have an opportunity to do something that is really transformational,” said Jerry Engen, senior vice president of corporate development for Westfield. “Downtown has changed itself over the last 25 years and it’s time for the center to change with it.” Engen pointed out that San Diego does not have an urban plaza like other great cities do and that the effect they have on the community is priceless. Engen expects that thousands of visitors will be drawn to a new downtown plaza, which will help restore the significance of Horton Plaza Park and ultimately transfer directly into additional shoppers and increased business activity for the retail center and surrounding neighborhoods. Russ Mitchell, director of sales and marketing for the U.S. Grant Hotel, located directly across the street from the Horton Plaza Park, said that in terms of attracting business, the plan provides a great opportunity because it’s an excellent gathering place. “It will help improve the area’s look and feel,” Mitchell said. “It will provide an open space that will be very welcoming and inviting.”