Court Clears Way for Caruso Project

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A Los Angeles court ruled Friday that mall developer Rick Caruso can proceed with plans to build a large mixed-use project in Glendale.


Construction on the $264.2 million project, Americana at Brand, will start in 30 days, Caruso announced in a statement. The project will contain 475,000 square feet of shops and restaurants and 338 residential units.


Americana at Brand is being built on a 15.5-acre site across from the Glendale Galleria, owned by Chicago-based mall behemoth General Growth Properties Inc.


Since buying the Galleria three years ago, General Growth has fought to prevent Caruso from moving forward. After the Glendale City Council approved the project, General Growth collected enough signatures to put the issue before voters.


Both sides spent over $1 million during the campaign. Glendale voters narrowly approved the project at a 2004 special election. When General Growth lost, the company sued the city of Glendale and Caruso to block the project.


The company lost in Los Angeles Superior Court earlier this year, appealed and was shot down today by the California Court of Appeals, second appellate district in Los Angeles.


“General Growth’s succession of losses in this fight should be a wake-up call to other companies considering taking a page out of the General Growth playbook on attempting to stop competition,” said Caruso, who owns the Grove at the Farmers Market.


In Arcadia, Caruso is facing a similar challenge from the Westfield Group to a mixed-use project he wants to build near one of the company’s malls and the Santa Anita racetrack.


Caruso has filed a $40 million lawsuit against General Growth, accusing the mall giant of antitrust and anticompetitive practices. The case is expected to go to trial early next year.

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