2005 Section 108 Project Summary - California

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Economic Development

DART Development Project
BORROWER: Los Angeles County
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $10,000,000

Los Angeles County will use its Section 108 Guaranteed Loan in conjunction with a $1,000,000 Economic Development Initiative Grant to partner with the City of Commerce to assist the expansion of Dart Entities, Inc. in the City’s Industrial center. The Dart projects will include the construction of a custom refrigerated food processing building that will be leased to Contessa Food, a seafood processor; and the purchase of an 175,000 square food building to be leased to Huhtamaki Consumer Packing West, Inc. These projects will create an estimated 340 jobs, 51% of which will be available to low and moderate-income persons. The project’s total redevelopment will cost an estimated $28,016,124.

Focused Neighborhood Revitalization Project
BORROWER: San Bernardino
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $7,500,000

San Bernardino will use its Section 108 Guaranteed Loan to fund the City’s Redevelopment Agency, which will utilize the funds to finance acquisition, demolition, and relocation activities in support of the Arden Guthrie Retail and Mercado/Santa Fe projects. In the Arden-Guthrie project, the Agency will assemble 17 acres and resell the land to the for-profit developer Sonnenblick Del-Rio, who will develop the site into approximately 122,000 to 186,000 square feet of new retail, restaurant, and entertainment space.

In the Mercado/Santa Fe project, the Agency will finance the acquisition of 9.17 acres and resell the land to a partnership between Arthur Pearlman Corporation and Majestic Realty, which will develop the site into a 59,421 square foot Food 4 Less Supermarket and an additional 39,500 square feet of specialty retail space. Total project costs will be approximately $38,486,352.

The City estimates that these commercial developments will create approximately 375 full-time jobs, of which at least 51% will be held by or made available to low to moderate-income persons. The Food 4 Less Supermarket also will provide grocery-shopping services to 42,953 low- to moderate-income persons that live within its service area.

San Jose Airport Expansion
BORROWER: San Jose
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $25,810,000

San Jose will use its Section 108 Guaranteed Loan proceeds to assist with the acquisition of a vacant 75-acre site that is adjacent to the City owned Norman Mineta International Airport, in order to facilitate the Airport’s upgrade and expansion. The Site will initially be used as a transitional area for Airport’s expansion-related activities including interim construction staging, relocation of rental car operations and airport employee parking.

This expansion project at the Airport’s new North Concourse will contain the security and cargo facilities.

The City estimates that this Airport development project create an estimated 836 full-time equivalent jobs, 51% of which will be held or available to low and moderate-income persons. Upon completion of the Airport expansion, the project site will ultimately be re-developed into approximately 3,000,000 square feet of office and commercial space, which will create additional new job opportunities for low and modern income persons.

Marlton Square
BORROWER: Los Angeles
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $9,000,000

Los Angeles will use its Section 108 Guaranteed Loan funds and other monies to finance the redevelopment of the 19.7-acre Santa Barbara Plaza, a designated slum and blighted site in the Crenshaw area of South Los Angeles. This redevelopment will be a mixed-use retail-residential development to be named Marlton Square.

The Section 108 guaranteed loan funds will be used in conjunction with a $2 million Brownfield Economic Development Initiative Grant to assist in financing the construction of 119,000 square feet of retail space other development components include, 140 units of single-family housing, 150 residential condominiums, and a Community Facility. This project will be carried out in accordance with the Redevelopment Plan for the Crenshaw Redevelopment Project area and meet the Community Development Block Grant national objective of eliminating slums or blight on an area basis.

Housing Rehabilitation

Northridge Earthquake Recovery Project
BORROWER: Los Angeles
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $3,900,000

Los Angeles will use the Section 108 Guaranteed Loan to finance the Northridge Earthquake Recovery project. The City will use the Section 108 financing for rehabilitation or reconstruction of approximately 793 single-family units and 3,865 multifamily units damaged by the Northridge earthquake, which occurred January 17, 1994. These apartment buildings or housing units were determined to be unsound either structurally for entry, unsafe for residency or had sustained over $7,500 in damage per housing unit.

The earthquake greatly damaged the amount of safe and affordable housing units that were already in short supply for residents.

Public Facilities

Lesbian, Gay, Bi-Sexual, Transgender Project
BORROWER: San Diego
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $159,000

San Diego will use its Section 108 Guaranteed Loan proceeds to assist the San Diego Lesbian, Gay, Bisexual, and Transgender (LGBT) Community Center, Inc. in the financing rehabilitation work for its center. The Center offers 22 programs and provides services to over 1,800 persons each year, that include mental health programs, domestic violence programs, support services for persons living with HIV/AIDS, and youth counseling programs and has a policy of non-discrimination, offering its services to all persons who have need of its programs.

LGBT needs the City’s funding to make the basement of its current facility usable for provision of more services and to widen the meeting room doors and entryway for accessibility for handicapped clients. Also, this phase of the improvements will include a hydraulic lift between floors to provide access to handicapped clients.

The LGBT Center must provide income information to the City that shows that at least 51 percent of its clientele that will use its facility are persons whose family income does not exceed the low- and moderate-income limit.

Otay Mesa/Nestor Library
BORROWER: San Diego
STATE: CA
SECTION 108 LOAN GUARANTEE AMOUNT: $750,000

San Diego will use its Section 108 Guaranteed Loan proceeds to finance the renovation of its Otay Mesa/Nestor Branch Library (the “Library”). Built in 1985 and located in one of the City’s rapidly growing communities, the Library needs to expand its current capacity from 10,000 square feet to 15,000 square feet, to provide both additional shelving and space for computer labs.

This library expansion project will benefit its neighborhood service area which has a low- and moderate-income that is 54% of all residents in the Library’s service area.