2003 Section 108 Project Summary - California

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Economic Development

Westgate Center Retail Development
BORROWER: ANAHEIM
STATE: CA
COMMITMENT AMOUNT: $10,000,000

The City of Anaheim, California, was awarded a $10,000,000 Section 108 loan guarantee to assist with the development of the Anaheim Westgate Center (Westgate Center). The Westgate Center is planned as a 270,000 sq. ft. retail center to be anchored by a 140,000 sq. ft. home improvement center and a 50,000 sq. ft. supermarket. The balance of the project will contain smaller shops, a number of restaurants and a 26,000 sq. ft. public plaza. The overall project will generate over 600 jobs. The City of Anaheim and the Anaheim Redevelopment Agency will work with Zelman Retail Partners (Zelman) to develop the facility. A $650,000 HUD Brownfields Economic Development Initiative (BEDI) grant was also awarded to the City for this project and will be used to pay interest on the Section 108 loan.

Peck-Raomona Triangle Development Project
BORROWER: EL MONTE
STATE: CA
COMMITMENT AMOUNT: $2,200,000

The City of El Monte, CA has been awarded a $2,200,000 loan guarantee under Section 108 in order to lend the proceeds to the El Monte Community Redevelopment Agency (CRA) who will assist M&A Gabaee, L.P., to develop a convenience shopping center totaling 32,810 square feet. The center will be located in the Peck-Ramona Triangle area and will be anchored by Wells Fargo Bank, Kragen Auto Parts and Walgreens Drugs, with additional retail area totaling 6,400 s.f. A significant benefit of the project will be the relocation of the Wells Fargo Bank from its current site across the street, which will allow the Penske Automotive Group to expand its retail automobile facility into the space vacated by the Bank. The Section 108 funds will be used to acquire 3.5 acres of land and the activity will meet the criteria for the national objective of benefit to low- and moderate-income persons on an area-wide basis.

Pacomia Center
BORROWER: LOS ANGELES
STATE: CA
COMMITMENT AMOUNT: $7,400,000

The City of Los Angeles, California has been awarded Section 108 loan guarantee assistance for the redevelopment of the 24-acre Price Pfister site into an industrial and retail project. The City will loan the Section 108 amount to the City's Community Redevelopment Agency (the "CRA"). The CRA will grant $3,400,000, and will loan the remaining $4,000,000, to the project developer, who will utilize the funds for property acquisition. The Pacoima Center project will include a 165,000 square foot Lowe's Home Improvement Store. Pacoima Center will also include a 45,000 square foot Gigante Market, 34,221 square feet of retail shops, and 15,000 square feet of retail pad space. An existing 49,000 square foot building will be retrofitted for industrial use and sold to end users. The Section 108 amount will be used in conjunction with a Brownfield Economic Development Initiative (BEDI) grant of $1,400,000. The BEDI amount will go toward pre-development soft costs and interest payments on the Section 108 loan during the construction period. Upon completion, the project is estimated to create 622 new industrial and retail jobs. Total project costs are estimated at $37 million.

Old Town/Kerns-Pioneer Redevelopment Area
BORROWER: BAKERSFIELD
STATE: CALIFORNIA
COMMITMENT AMOUNT: $1,000,000

Guaranteed Loan Funds will be used by the City of Bakersfield for economic development activities, land acquisition, relocation, and rehabilitation of an existing office building. The proposed project is part of the development of a mixed-use project that includes 40,000 square feet of new retail, the rehabilitation of a former retail building, and construction of 50 units of Senior Citizen housing. The development will also include the construction of a public plaza area and a small cultural theater. The project will create 106 new jobs. A HUD Brownfields Economic Development Initiative (BEDI) grant of $250,000 will also be a source of funds for the project.

Story/King Retail Project
BORROWER: REDEVELOPMENT AGENCY OF THE CITY SAN JOSE
STATE: CALIFORNIA
COMMITMENT AMOUNT: $18,000,000

The Redevelopment Agency of the City of San Jose, as the City's designated public agency, will borrow and use the Section 108 guaranteed loan funds together with $2 million in HUD Brownfields Economic Development Initiative (BEDI) grant funds for acquisition, demolition, relocation, site remediation, site improvements and hazardous material remediation costs associated with the Story/King retail project. The total projected development cost is approximately $101 million and is estimated to generate 600 new jobs.

Housing

The Grove Housing Development Project
BORROWER: MERCED
STATE: CA
COMMITMENT AMOUNT: $4,000,000

The City of Merced will use Section 108 guaranteed loan funds for acquisition and infrastructure costs associated with the construction of "The Grove", a 204-unit affordable multi-family housing development. Upon completion of the construction, the City will sell the property to Merced The Grove, L.P., a California Limited Partnership. The property is located on East Parsons south of Childs Avenue in Merced. All 204 units will be income restricted to families who earn less than 60 percent of area median income. The project consists of 48 units of 2-bed/2-bath, 120 units of 3-bed/2bath, and 36 units of 4-bed/2-bath. The estimated cost for this project is $24.9 million.

Dana & Woodland Manufactured Housing Parks
BORROWER: WOODLAND
STATE: CA
COMMITMENT AMOUNT: $1,000,000

The City of Woodland will utilize $1,000,000 of Section 108 loan guarantee assistance to rehabilitate the Dana Motel and Trailer Park along with Woodland Mobile Home Park, collectively called The Parks. The City will lend the Section 108 funds to the non-profit owners of The Parks, Community Housing Opportunities Corporation (CHOC). Rehabilitation of The Parks will include new water and sewer services for each of the homes. The project provides housing activities benefiting low- and moderate-income households.

Public Facilities

Mid City Public Improvements
BORROWER: SAN DIEGO
STATE: CA
COMMITMENT AMOUNT: $3,707,000

The City of San Diego, California, was awarded a $3,707,000 Section 108 Loan Guarantee to partially finance construction of a number of public improvement projects in the Mid City community. The nine projects are being undertaken to improve pedestrian safety and support other revitalization efforts underway in the community. All assisted activities will provide benefit to the areas low- and moderate-income residents.

Alpine Redevelopment Project
BORROWER: TULARE
STATE: CA
COMMITMENT AMOUNT: $450,000

The City of Tulare, California, has been awarded a $450,000 loan guarantee under Section 108 to finance the Alpine Redevelopment Area Project. The Section 108 loan will be used by the City for reconstruction of M. L. King Avenue between "O" and Blackstone Streets. This activity is part of the overall redevelopment of the Alpine area being undertaken by the City. The reconstruction of public facilities will meet the criteria for national objective by providing benefit to low- and moderate-income persons on an area-wide basis.

Central City Project
BORROWER: CHINO
STATE: CA
COMMITMENT AMOUNT: $2,000,000

The City of Chino will use Section 108 funds to finance site acquisition and construction of a Community Services Center in the amount of $2,000,000. The 15,000 square foot Center will be constructed on city-owned property on the southeast corner of "D" and Central Avenue. The Community Services Center will have social service activities and therapeutic recreational services including the following: youth and family counseling for victims of violence; diversion programs for drug and alcohol, and gang intervention; life and job training workshops; after school tutoring program; early childhood education programs for children under five years old; child care for low/moderate income families; and community classrooms/multipurpose rooms to be used for educational and meeting purposes. The activity will benefit low- and moderate-income area residents and the estimated cost of the entire project is $2.6 million.

Courson Connection Development Project
BORROWER: PALMDALE
STATE: CA
COMMITMENT AMOUNT: $5,000,000

The City of Palmdale received $5,000,000 in Section 108 loan guarantee assistance to support for the Courson Connection Development Project. The project will include a new senior center, 154 units of senior housing for persons of low and moderate income and storm water retention/park space. The City will borrow the guaranteed loan funds to finance property acquisition, relocation, demolition, and construction activities in a primarily residential area. The City of Palmdale Redevelopment Agency has entered into two agreements with the Southern California Housing Development Corporation (SCHDC), a non-profit organization, which is the selected designer/builder for the project. SCHDC has been carrying out the planning and design phases of the project. The Section 108 loan will be used in conjunction with other public and private revenue sources including City Community Redevelopment Agency funds, CDBG funds, City Housing Bonds, Gas Tax funds, and HUD Section 202 financing. The Redevelopment Agency, which will be managing this project development in coordination with the City, currently owns 13 parcels of land within the project area. There are an additional 26 parcels to be acquired. The project will involve the relocation of some families and the City is hiring a qualified relocation firm to handle the relocation plan and process. The total cost of the project is estimated at $27.4 million.

Neighborhood Community Project
BORROWER: PORTERVILLE
STATE: CA
COMMITMENT AMOUNT: $3,885,000

Porterville, California, will use Section 108 guaranteed loan funds to finance construction and installation of public improvements and utilities related to the Neighborhood Community Center ($3,000,000), and reconstruction of parking lots located in the central business district ($885,000). The activities will provide benefit to low- and moderate-income residents on an area basis and job creation.

Antelope Valley Mental Health Association Facility
BORROWER: LANCASTER
STATE: CA
COMMITMENT AMOUNT: $1,450,000

The City of Lancaster will use Section 108 proceeds to acquire 2.16 acres of land, relocate existing businesses, and demolish existing structures. Once these activities are complete, the City will deed the property to the Antelope Valley Mental Health Association (MHA) for the construction of a mental health facility. MHA will own and operate the facility and provide a variety of services such as mental health care, housing, employment, and money management to adults with mental illnesses. The proposed activities will meet the national objective of benefiting low- and moderate-income persons on a limited clientele basis.

Southeast Commercial Corridor Infrastructure
BORROWER: BAKERSFIELD
STATE: CA
COMMITMENT AMOUNT: $800,000

Bakersfield, California, received Section 108 loan guarantee funds to carry out activities located in the City's Southeast Redevelopment Area. The activities include constructing new sidewalks, curbs and gutters and other public improvements in the Southeast Commercial Corridor. The project will address inadequate infrastructure, blighted conditions, and improve the safety and environment in the area. In addition, the project will potentially act as an economic catalyst in the City's efforts to redevelop and revitalize lower income neighborhoods. The proposed activity will meet the national objective of preventing or eliminating slums and blight on an area basis.

Antelope Valley Children's Center
BORROWER: LANCASTER
STATE: CA
COMMITMENT AMOUNT: $1,500,000

The City of Lancaster, California, will grant Section 108 loan proceeds to the Children's Center of the Antelope Valley (the subrecipient) to assist in financing construction of a new Children's Center. Construction of the new facility will allow the subrecipient to relocate to a larger facility and expand its current operations. The Center will provide a variety of services to abused children in the North Downtown Revitalization area. The project will meet the national objective of benefit to low- and moderate-income persons on an area basis.

Fire Apparatus Acquisition
BORROWER: EL CAJON
STATE: CA
COMMITMENT AMOUNT: $850,000

The City of El Cajon will acquire a new fire engine ladder truck using Section 108 loan guarantee assistance in the amount of $850,000. The newly acquired fire apparatus is an integral part of a public facility and will primarily serve a low and moderate-income residential area, thus providing area benefit.