mayor pro tem loan council members it's good to be able to visit with you tonight and share with you some important updates on the progress we've made it Atlantic Square under the auspices of the business recovery development zone which governs the property, the development agreement that we entered into with you that implements many of the provisions in that development zone and how that's helped the center immeasurably over the past 18 months. If I can have the next slide, please. So, really, the development agreement that we're kind of looking at tonight and evaluating how we perform thus far is kind of an agreement to work together on really three critical issues as we saw it for the center. One was to establish the business recovery development zone, which is in many ways pretty It's pretty unique in Southern California. We think that it was pretty smart to put something like this in place, particularly coming out of the COVID pandemic. And it gives property owners the ability to kind of write a prescriptive zone for their property in exchange for entering into a development agreement with the city. So certain public benefits are realized in providing that zoning. And so the business recovery development zone, putting in place prescriptive zoning for the center, and then entering into the development agreement to achieve certain improvements. And those were kind of the objectives of the overall development agreement. Next slide, please.
So the DA really created a roadmap for progress. It set pathways for shopping center, a pathway for shopping center modernization, established process and milestones for prospective of redevelopment and I'll touch on that a little bit later in my presentation. Hopefully I won't take too long because I know there's a lot of people who want to talk about other important issues. And adopt some zoning rules tailored to market demand.
Just to touch on that a little bit, this business recovery development zone and the development agreement what it allowed us to do Monterey Park. The Atlantic Square, prior to this agreement in the Bird Zone overlay, was governed by a CUP that stretched back to 1989. It was pretty restrictive. It limited us to five restaurants in the center, limited personal service uses. It wasn't necessarily a bad thing back in 1989 when the center was redeveloped, but over the subsequent 20 some odd years, it became obsolete given everything that's going on in the retail sector. So the development agreement and the bird zone allowed us to kind of write our own code, so to speak, relative to land uses. And that has been really, really beneficial because it's prospective tenants now have certainty about what's permitted on the property. They feel good about knowing the process they may or may not have to go to to get through to get their permits, whether it's a use permit or a minor use permit or administrative use permit it's provided the clarity that's very important for tenants and and for us as well in cultivating a tenant mix so those were kind of our roadmap for progress and I'll have you go to the next slide please really the bulk of the work over the last 18 months is focused on building C which is the building just south of the northernmost building that's across from Boston Market. We saw that it had some prolonged vacancies there. The infrastructure was very old, and we realized that if we wanted to curate a heavier food and beverage tenancy in that particular building, we were going to need to upgrade the infrastructure. So in one particular section of the development agreement, we were tasked with submitting a certain number of building permits for all the work that we were going to do. The city did a great job in reviewing plans and getting permits turned around quickly. And we were able to commence our work within the 180 days we were required to do after the approval of the development agreement. And then we completed our work at the end of 2025. So it took us less than a year. And the city signed off on permits and closed the file in 2020, well, then when they were supposed to, we were good. So Building C is done. I will go through some real quick, some improvements, some pictures so you can see actually what we've done. We have our first tenant in that end of the building that was renovated, the Latina Medical Center. And I will touch on some leasing issue aspects. Good news on the leasing front when I get towards the last half of the presentation. But in terms of the shopping center modernization improvements, our requirements under the development agreement for Building C have been fulfilled. So I have the next slide, please. Thank you. So likely the very largest capital expenditure in Building C, which, by the way, was several million dollars of CapEx, Just for this one building was the upgrading of switch gear and the equipment you see there is Basically to modernize the building from an electrical service standpoint
It is it is quite an effort to get that kind of electrical equipment When everybody else wants it and the lead times are long, but we were able to get it done Next slide, please Building C needed a new roof. We put a new PVC roof on it and we added new HVAC equipment to the top. Several of the HVAC units on top are pretty old. We have new tenants coming in. We needed upgraded tonnage on HVAC equipment. Next slide, please. Because we want to curate more food and beverage tenants in this particular building, we added two 1,500-gallon grease interceptors right out in front of the building in the parking lot. There's subterranean, those are installed and ready to go. Next slide. And then we added and rerouted fire and domestic water lines because we had to, because of path of travel work we did next to the switch gear, which you'll see in a moment, we had and the grease interceptors, we had to move some water and domestic water lines around. And so those are some of the images you see there. Next slide. One of the requirements is that we add some EV charging stations. We've added four stations in the parking lot. Those are all operational now. And the path of travel that I just mentioned on the north end of building C next to that switch gear, you can see in the photo on the right.
So one of the other elements, it really wasn't identified, I don't believe, in the development agreement but what we wanted to do is conduct a center-wide paint program. So that was about a $300,000 project and we have just about wrapped up the paint program say for the IHOP building which is coming but you'll see in the next several slides some before and after photos. This being the south end of the building where Silver Lake Raman is. Next slide. This is where the new Einstein Bagels is located. I hope you like the paint scheme. We like it a lot better than kind of those Moorish colors that were in place for a long time. Next slide. This is the El Pollo, I think this should be the El Pollo local building. down at the south end of the center.
And then one more slide, I think, on the paint program, again, at the south end of the center.
Next slide, please. So shopping center modernization phase two. So as we all realize, one of the other major components of the development agreement at the time we entered into it was the city and TRC and a prospective drive-through tenant working to figure out a way to put a drive-through restaurant at the north end of the center, take down Building D. The city worked very hard to work with us on developing a signalized intersection design that was necessary that the tenant needed to ensure that traffic control in and out of the center was effective enough that would support a drive-through restaurant that was not located on the street. It was interior to the center. And so we didn't want vehicles passing by and missing it. So ultimately, despite our best efforts, we weren't able to come to terms with that drive-through tenant. We weren't really able to button up final designs, elements on the intersection. So we decided that we would not proceed with that. and are pivoting now to understanding that probably a drive-through is not going to work in that location that we need to upgrade building D which is the building that's there now same way we did with building C and begin making efforts to retenant that so a lot of the work that you see in building C that has been completed will be shifting over to building D we're going to be focusing there now be another multi-million dollar capital investment we will begin in submitting applications for building permits next month because we want to get it going. We do have tenant interest from a national retail chain on that in cap on the southern part of the building. So we need to move and we plan on doing that. And so some of the other things that I think were important that we appreciated the subcommittee, Councilmember Sanchez and Councilmember Wong the city manager mr. How came out we toured the site and were able to kind of give them a firsthand look at the infrastructure improvements we've made we received a lot of good input from them relative to potential ways to activate open space at the center we're surveying those areas now we want to kind of work with our tenants to see where we can and possibly use open space in seating areas. We'll be staying in touch with Mr. Howe on how we're proceeding with that. And I appreciated the input we received.
Also, we're trying to engage the community in the economic development sense outside of the center, outside of just the operation of the center. I had a good meeting with Mr. Howe and Joseph Torres regarding ways we might be able to provide resources, expertise to assist the Susan Rubio Entrepreneur Center. It's just opened at ELAC. So we had a really good meeting. We're going to have a meeting with Dr. Trujillo in a couple of weeks to kind of get some more detail about what they're looking for. we think we have the ability to offer some good information to prospective tenants or businesses in the community that are taking advantage of the center to help them understand how leases work how to select a space what CAMs are so that they all have an understanding before they go in and make business decisions we think that's an important area where we think we can help so we'll have a discussion with Dr. Trujillo in a couple of weeks. But as you'll see in this Building D, those are all the infrastructure improvements we plan to make in Building D. And again, we have some pretty hot interest in that large end cap. If you look at the picture on the right where the three arches are, we have a national retail chain that would really like that space. We've got to do some building work first. So let me move to the last slide. So we're welcoming to Atlantic Square and kind of a new welcome on one of them. But new tenants and those are coming. Einstein Bagels has been there since last year. They're doing, they're killing it. They're doing really well. The Latino Medical Center I mentioned in Building C is open for business. Thai house has expanded to the space immediately north of it. They're doing very well. The green olive is going to be at the southern end, very southern end, southwest corner of the center, where the barbecue restaurant was. And they're beginning, I believe they're beginning their TI work where they put in for permits. 10,000 coffee just opened. To Council Member Sanchez's credit, he brought in a cup. Thanks for the props
And then the melt which is a critical tenant we think is going into the Boston market space They're doing their intended improvements now. They should be open Early July is what it looks like the other good news and it goes back to Activating the open space that you mentioned councilmember Sanchez during a tour. They're going to use that patio out next to where the where the covers are so I think that'll be really important because that will activate that space there'll be activity out there you'll see it from the street so I think that'll be a good driver into the center the good really good news is and I some of you know more detail than I can share here we have we're in we're in late-stage negotiations with a very large national fitness chain for the Rite Aid space That is pretty close. Hopefully by mid to end summer we'll see. But that personal service, that fitness use will drive so much activity in the center of the property and really give us an ability to market the rest of the center to other personal service uses and food and beverage uses. and it'll create what we're striving to create here is kind of a longer duration stay at the center. So we're very excited about that. And I will just say just generally, numerically speaking, we're in late-stage negotiations on five leases for vacant spaces, and we're in letter of intent stages with six other prospective tenants. So we feel like we've made good progress. I hope you agree. We really appreciate all the staff's engagement with us. It's been very productive.
Council members, thank you for your visit to the site. City manager, thank you. Mr. Howe, thank you. Mr. Torres, thank you very much. Continue to feed us tenant ideas. I know Mr. Torres has, if they pop up, we'll evaluate them, but we'll, you know, leads are leads. So we appreciate your engagement. Well, Ralph might have a problem with that. But anyway, thanks very much. I'm open for questions if you have a few.
I'll do the best I can to answer.