Not often does one developer slug it out with another developer at the ballot box and in a courtroom. But that is the case in El Segundo, where Kilroy Realty is trying to block Thomas Properties Group from developing 2.175 million square feet of office and retail space on the site for a former aerospace factory near Los Angeles International Airport (LAX). Kilroy, whose corporate headquarters is across the street from the proposed development site, provided funding to force a referendum on the city's approval of the El Segundo Corporate Campus. The City Council has scheduled a June 18 special election. Kilroy has also filed a lawsuit against the city, Thomas and the landowner alleging that the project's environmental impact report was inadequate. "This is a developer that is trying to stop development for competitive reasons," Thomas Senior Vice President Tom Ricci said of Kilroy. Kilroy representatives declined to comment and instead referred CP&DR to the group Citizens Against Gridlock in El Segundo (CAGES). Brian Crowley, chairman of CAGES, was a planning commissioner for nine years before a falling out with the City Council last year. Crowley said that the project would add thousands of cars to already congested streets and highways. And, he said, the development agreement between Thomas and the city lacks certainty. "It's a specific plan with no specifics," Crowley charged. "The city has basically abdicated its planning role and said, ‘You give us whatever you want to give us.'" The property has been important to El Segundo for decades. A coastal city of about 17,000 residents just south of LAX, El Segundo flourished after World War II with the growth of the aerospace industry. For about 40 years, Rockwell International ran a large manufacturing plant on the site. When the industry receded during the early 1990s, Rockwell closed the plant and demolished the buildings. Federal Express purchased the land and proposed building a major sorting facility. However the Planning Commission in El Segundo, which has long opposed airport growth, rejected the project. With available land at a premium in Los Angeles's southwest side, a couple other developers took a run at the site, said Paul Garry, El Segundo senior planner. Nothing ever materialized, though, until Thomas came along. In January, the City Council approved an EIR, a general plan amendment, rezoning, a specific plan, a 26-lot subdivision and a development agreement for the Thomas project. The proposal calls for 2.175 million square feet of development, 20% of which must be "non-office." Thomas must provide 1 acre for a new fire station, and agreed to sell 5 acres to the city for $1 million per acre so the city can build soccer fields. Thomas and city officials say the price is about half of market value. The deal also calls for Thomas to spend about $3.8 million on traffic mitigation. Thomas will build an internal street system and provide shuttle buses. The City Council did have to adopt overriding considerations because traffic congestion and air quality impacts cannot be fully mitigated. Thomas has proposed a campus-style project, with common areas, shops, restaurants and services for the estimated 7,000 office workers who could eventually locate there. Thomas has not signed any leases, Ricci conceded, but it has talked to potential tenants. He noted that corporate heavyweights such as Boeing, Northrop Grumman, Raytheon, Direct TV and Computer Associates already have offices in the immediate vicinity and that the El Segundo Corporate Campus would provide space for expansion or relocation. El Segundo leaders are counting on the development to bring jobs and revenue to town. A fiscal impact analysis by Sedway Group found the project at buildout would increase city revenues by about $2.8 million, while the city would spend only about half that amount serving the site. City officials insisted on a retail and hotel component for the project to generate money for the city, and so that traffic gets spread out before and after the morning and afternoon peaks. The project will generate about 21,000 vehicle trips per day, according to the EIR. Ricci said some intersections in the area are already at capacity, and the only way to avoid a significant impact would be to reduce the size of the project by 95%. He noted that existing ramps from the 105 freeway serve the site, and that a Greenline rail station is nearby. "We're always concerned about traffic in El Segundo," said Mayor Mike Gordon, who voted for the project. "We're a pass-through community on the way to the airport and Los Angeles." Gordon said he is satisfied with the project's traffic mitigations. Plus, he said, the land for soccer fields and a fire station is important. But Crowley, of CAGES, said city officials are trading gridlock for minimal benefits. "The city is dangling the prospect of some new park space and they are totally ignoring the rest of the project," Crowley said. Plus, he said, the park would be more than half a mile from the nearest residence and surrounded by heavily traveled roads. Crowley said the site should be developed with high-value facilities that employ few people, such as telecommunications switching stations or large movie production facilities. Such uses would generate revenue for the city but place fewer cars on the road, he said. Crowley also complained that the development agreement allows Thomas to build half the project before including any of the desired retail and service establishments. Moreover, with the 26-parcel subdivision, the city could end up dealing with many different builders, he said. Ricci, however, said Thomas is committed to the site. And the project description in the EIR shows development of restaurants, retail shops, a health club and a day care center occurring throughout the four-phase project, although the hotel would come during the second half of development. It appears both sides will pour money into the campaign leading up to the June 18 election. "We are running a full-on political campaign," Ricci said. "This is an all-or-nothing vote on June 18th. If we lose that election … Kilroy will have driven the proverbial stake through the heart of redevelopment on the east side of Sepulveda Boulevard." Added Mayor Gordon, "From our standpoint, this is about Kilroy Realty Corporation not wanting to compete." But Crowley said a vote against the project will not kill redevelopment. Thomas could put together a new proposal that better serves the city, he said. Contacts: Brian Crowley, Citizens Against Gridlock in El Segundo, (310) 813-9062. Paul Garry, El Segundo planning department, (310) 524-2342. Tom Ricci, Thomas Properties Group, (213) 613-1900. Mike Gordon, El Segundo mayor, (310) 615-2313. Project website: www.elsegundocorporatecampus.com