State finance officials have temporarily squashed a series of land deals put in motion by the Burbank City Council last month to keep IKEA within city limits, officials reported this week.
The Swedish furniture retailer has outgrown its current digs and has its eyes on a much larger property at 805 South San Fernando Boulevard. The owner of that property, Crown Realty and Development, was willing to sell the land to the retailer provided it can acquire the current IKEA building.
“Right now, nothing is happening with that sale,” City Atty. Amy Albano said Tuesday.
Complicating the deal is the fact that state finance officials have yet to determine whether the transfer of the $1.3-million IKEA building from the now-defunct Redevelopment Agency to the city is legal since it occurred three months after property transfers were banned by the legislature.
A decision on the legality of the property transfers — and others like it that took place in cities across the state — isn’t expected until mid-2013.