TEMECULA - The Temecula City Council is set to act tonight on a number of legal agreements with The Promenade mall developer on financing of a $22 million parking garage and $2 million in improvements to the shopping center's "ring road."

Although the plans for a 125,950-square-foot expansion to the existing mall were approved in March, there were still questions about how the existing infrastructure would be modified to solve long-standing traffic problems as well as hedge off new circulation conflicts.

The city is planning to contribute $11 million for the construction of a five-story parking structure. The money for the 936-parking space garage will come from the city's redevelopment fund, which helps provide for public infrastructure. It is proposed that the city will enter into a 30-year lease for the facility, but the ownership of the garage will remain with the mall developers.

The city expects to recoup much of that through sales tax, estimating that The Promenade expansion will generate $1.1 million in new sales tax revenue for the city each year.

The total cost of construction and the value of the parking facility is estimated at $22 million, which will be paid up front by the mall's parent company, Cleveland-based Forest City Enterprises Inc. Once the mall expansion and other infrastructure improvements are made, the city will begin to release the $11 million earmarked for the garage.

One of the conditions being considered by the council are improvements to the ring road, which encircles the mall. The changes will include the reconfiguration of traffic lanes, the installation of traffic signals, creating pedestrian crossings and an upgrade to street signs.

Temecula Director of Public Works Bill Hughes said the cost of upgrading the roadway is not expected to exceed $2 million.

"One of the biggest criticisms regarding the traffic at the mall is that there is some confusion at some of the entrance points, where it is unclear if incoming traffic has the right-of-way or when cross traffic should stop," Hughes said.

He said signals will be installed at at least four intersections within the mall property. In addition, he said some of the parking aisles will be closed off to reduce the number of entry points onto the ring road.

Details of the ring road improvements are due back to the City Council for review and approval no later than April 15, 2008. Under the agreement, the improvements are to be completed at the by March 31, 2009, the expected date for the opening of the mall expansion, unless it is extended for "good cause" by the city manager.

In an effort to ensure the improvements are made to the ring road, two safeguards have been built into the agreements between the city and the mall owners. First, $4 million of the $11 million slated for the parking garage will be withheld. Two million dollars will be released when the major department stores have approved the ring road improvement plan. The remaining $2 million will be released when the total improvements have been completed to the satisfaction of the council.

If for any reason the road improvements are not completed by the March 31, 2009, deadline the city will take over the construction and will be reimbursed by the mall owner for those construction costs.

"Everyone's preference is to have the developer finish the job, but we have built provisions in to make sure the work gets done one way or another," Hughes said.

Assistant City Manager Bob Johnson said the city had hoped to have the agreements nailed down sooner, but said the city was pleased to have the mall expansion project moving forward.

In June, the Temecula Planning Commission delayed a vote on a modification to the expansion plans citing the need for information about how the changes would fit into the area's traffic flow. Planning Commissioner John Telesio said knowing the big picture of how traffic will be improved within the mall will give the commission a better foundation for considering other projects in the mall area.

"People should be able to get from one end of the mall to the other without feeling like they are traveling to another country," Telesio said.

The proposed expansion will include eight new buildings situated along a two-way "Main Street" that will be installed on the mall's south side. The Main Street would begin from the ring road south of Macy's department store, veer eastward and run between the main mall building and Edwards Cinemas, then connect to an extension of North General Kearny Road.

The plaza between the existing mall and the movie theater would be reconfigured to create a parklike setting for patrons. A 16,500-square-foot restaurant is proposed to be built on the east side of the theater.

The council will consider the provisions at tonight's scheduled meeting at City Hall, 43200 Business Park Drive.

- Contact staff writer Nicole Sack at (951) 676-4315, Ext. 2616, or nsack@californian.com.