Mission Viejo redevelopment project’s estimated costs have increased by over $21 million (2024)

The estimated cost of the Los Osos Core Area project — a brand-new shopping and recreation area in Mission Viejo — has increased by about $21 million since the project initially began in 2021.

That’s a 32% increase, Mission Viejo leaders said, as the estimated cost of the project is now at more than $67.8 million for the project that involves updates and additions to the existing Village Shopping Center off of Marguerite Parkway and La Paz Road.

That updated projected cost includes the $12 million purchase of the Stein Mart building in December 2021.

The city’s original estimate for this project in September 2021 was $46 million. The price increased, said Assistant City Manager Keith Rattay, because real estate and construction costs have risen over the past two years.

“This is the natural progression for a project like this,” Rattay said.

The City Council unanimously agreed during its Oct. 24 meeting to move forward on the initial phase of the project, called the “Go Forward” plan. The project is planned out in five phases over several years.

Since 2017, the city has been working at Oso Creek to expand the area to include a one-of-a-kind shopping, entertainment and event plaza called the Los Osos Core Area. This project will take over the older shopping center and connect to the greater project on Oso Creek.

This first phase of the project will construct a connection from the Mission Viejo Civic Center and library to the North Paseo area by a pedestrian walkway. Additionally, a park and gathering space will be built at the end of the walkway toward Oso Creek for community members to congregate.

“I think in the next 30 years, we’re going to look back and go, ‘What a brilliant idea this was,’” said Mayor Brian Goodell. “And we’re going to add another jewel to the beautiful crown of Mission Viejo.”

According to the approved site plan, the Los Osos Core Area project will encompass 22,736 square feet.

Once the shopping and entertainment centers are completed, the city can anticipate a sales tax generation of $3.57 per square foot, roughly equating to between $50,000 and $65,000 of additional sales tax per year to Mission Viejo, according to Rattay.

Councilmember Cynthia Vasquez said she was concerned by the potential lack of interest of developers in the project. Of the 17 firms contacted for involvement, only one conveyed interest, councilmembers were told.

“I have to admit, it is very concerning to me,” Vasquez said. “It makes me wonder if there are aspects we’re overlooking. It makes me curious to know if there are insights that the developers have that we’re missing.”

“I support this,” said Vasquez, “I just want to make sure we are doing all of the due diligence we can.”

Rattay shared feedback given from a recent walking tour event as well as other comments received from residents in recent months.

Aside from positive comments, residents expressed concerns about whether the project would include an efficient parking area. Residents said they wanted to allow vehicular traffic through the middle of the project. Others said they wanted a bike park or bike access through the center of the Los Osos Core Area, a bridge to be constructed over Marguerite Parkway that would connect to the Civic Center and a veterans memorial.

Rattay said a veterans memorial would be included, but he did not specify where it is planned.

“I think what we are doing is a good thing,” said Mayor Pro Tem Trish Kelley. “What I am seeing is a lot of excitement about the project.”

Mission Viejo will now hire an environmental consultant to develop the submittals required for the various state and federal regulatory agencies, and the design team that has already been working on the project will develop working drawings for the Los Osos Core Area.

The environmental consultations are expected to take place between December 2023 and the beginning of 2025, when construction would then begin for the first phase.