Mission Viejo is hitting pause temporarily on its Los Osos Core Area Project — a move city leaders say will give them more time for further “due diligence” about the space’s future.
The next step in the effort to develop a new shopping and entertainment area at the Village Center off of Marguerite Parkway and La Paz Road would be awarding a construction contract for the first phase of the project. But the city is halting awarding that contract, Elaine Lister, the city manager, told the City Council at a recent meeting.
“This will allow some time for further due diligence and to consider all our options, including the bids,” Lister said, “and also possibly a public-private partnership.”
Mission Viejo received two bids for the first construction phase, according to the city. A public-private partnership is still in the early stages of exploration.
The pause follows the closure of several large stores — Michael’s, Party City and Big Lots, Lister noted in the City Council meeting — and a delay with Santa Margarita Water District’s redesigning of its site plan. The city is incurring no additional costs because of the delay, Lister said.
But there is no timeline for when the awarding of a bid will be taken off pause, according to the city.
“The city remains fully committed to our downtown vision as well as our fiscal prudence,” said Lister. “This temporary pause gives us some time to evaluate the situation, let the vacancies play out and help us ensure we end up with the best possible project for the community.”
The Los Osos project will take over the 22,736-square-foot shopping center and connect to the greater project on Oso Creek.
The first phase creates the North Pasea pedestrian and bikeway recreational corridor, connecting the Civic Center and Library through the parking lot to the front of the shopping center. Last year, city officials estimated the first phase would cost Mission Viejo $6.2 million.