Salazar sues Glendale over 10-acre entertainment district deal

A developer in Glendale is suing the city over a canceled land deal for an entertainment district. Central Street Capital, led by Rob Salazar, filed the lawsuit last Thursday. They claim that Glendale breached their contract related to a 10-acre site intended for various retail and dining options, anchored by an Alamo Drafthouse movie theater. Central Street has stated that they have suffered damages exceeding $20 million due to Glendale’s actions. The planned project, called the 4 Mile District, is located near Virginia Avenue, just south of a Target store. The area is meant to feature retail options and potentially a hotel, but so far, the Alamo Drafthouse is the only confirmed tenant. Central Street began infrastructure work last summer, funded by more than $50 million in bonds. Despite the lawsuit, work on utilities and a parking garage continues. Central Street’s president, Isiah Salazar, mentioned that they cannot comment on the ongoing litigation but will proceed with construction. The lawsuit raises concerns about private development in the area. Central Street only owns a small part of the site, while the rest is owned by Glendale. In 2021, the two parties made a deal to sell land in two phases. The contract allowed Central Street to buy the first phase for only $1 once certain conditions were met. They claim they have met these conditions, but Glendale initially refused to acknowledge this before agreeing to proceed. However, shortly before the scheduled closing on March 5, Glendale recorded a "use covenant" against the property. This document imposes restrictions that Central Street argues make it impossible to proceed with their development plans. They believe this has negatively impacted their ability to secure financing for the project. In response, Glendale stated they will "vigorously defend" against the lawsuit. The city claims the developer is attempting to exploit a technical issue related to land use restrictions. Glendale has been working on creating an entertainment hub for years, though previous developers have come and gone without success. Central Street's current project is significantly smaller than earlier visions for the area, which originally included plans for a 42-acre development known as Glendale Riverwalk. Legal challenges from property owners have forced the city to scale back its ambitions over the years.