THE WHITE HOUSE
Office of the Vice President
VICE PRESIDENT GORE ANNOUNCES $213 MILLION TO HELP 23 CITIES CREATE AND PRESERVE 16,000 JOBS
WASHINGTON, DC - Vice President Gore announced the award today of $213 million in federal funds to help 23 cities spur economic development, create and preserve 16,000 permanent jobs, and stimulate $2.3 billion in business investment.
"This is an investment not only in America's cities, but in opportunity," the Vice President said in remarks at the Department of Housing and Urban Development (HUD), where he was joined by HUD Secretary Andrew Cuomo and the mayors of some of the cities.
"The funds," the Vice President added, "will give Americans the opportunity to support their families with good jobs, and the opportunity for cities to revitalize themselves with new businesses and new workers, ushering in new economic prosperity."
Cuomo, who spoke along with the Vice President, said, "The Clinton-Gore Administration is strengthening our partnership with cities and businesses to make the American Dream a reality for more of our people. This jobs program will help improve our cities and the lives of city residents."
Today's funds include $183.5 million in loan guarantees and $29.5 million in grants.
$183.5 Million under the Section 108 Program. Under the Section 108 program, $183.5 million in Economic Development Loan Guarantees will go to communities to fund job creation, housing rehabilitation, and the construction of public facilities and large-scale development projects. $29. 5 Million under the Economic Development Initiative. Under the Economic Development Initiative (EDI), $29.5 million in grants will go to localities to fund economic development activities that create jobs and other benefits, primarily for low- and moderate-income people. Working with Congress, Cuomo created the EDI grants in 1994, when
he was an Assistant Secretary at HUD, to work in tandem with HUD's loan guarantees.
The assistance announced today will go to:
El Monte -- $2.4 million. Los Angeles -- $26.3 million. Riverside -- $6.5 million. Stockton -- $14.5 million.
DISTRICT OF COLUMBIA
Savannah -- $4 million.
Aurora -- $7.2 million.
Indianapolis -- $8 million.
Des Moines -- $3 million.
Wichita -- $4 million.
Detroit -- $14 million.
St. Louis -- $22 million.
Jersey City -- $10 million.
Albuquerque -- $1.3 million.
Rochester -- $2.6 million. Troy -- $497,395.
Charlotte -- $3.5 million. Winston-Salem -- $1.4 million.
Akron -- $3 million. Toledo -- $28.8 million.
Philadelphia -- $29.9 million.
Fort Worth -- $9 million.
Yakima -- $5 million.
RECIPIENTS OF HUD ECONOMIC DEVELOPMENT INITIATIVE (EDI) GRANTS AND SECTION 108 ECONOMIC DEVELOPMENT LOAN GUARANTEES
El Monte will receive a $230,000 EDI grant and $2.2 million in Section 108 Loan guarantees to aid in development of an Auto SuperStore car dealership. A group of minority business owners will use the funds to buy a 4.5-acre site for the facility. Auto SuperStore will construct several buildings to house the dealership's operations and will contribute an additional $4 million to the project. The dealership will create an estimated 148 new jobs.
Los Angeles will receive $1.8 million of EDI funds and $14 million in Section 108 loan guarantees to help finance development of the North Hollywood Studio project, which is designed to reverse the exodus of entertainment industry jobs from the City. The studio site is 16 acres and will include a 390,000 square-foot production facility with 10 sound studios and 180,000 square-feet of post-production office space. Anticipated development on surrounding sites will include a 220-room hotel, 400,000 square-feet of office space, 70,000 square-feet of retail space, and a new building for the Academy of Television Arts and Sciences. Total project costs are $260 million. Over 3,000 jobs are expected to be created.
Los Angeles will receive $1.5 million EDI grant and $9 million in Section 108 Loan guarantees to support the revitalization of the Santa Barbara Plaza. The redeveloped plaza will consist of approximately 475,000 square-feet of retail space, 2,000 parking spaces and office space. About $94 million in other public and private resources will be invested in the project. It is anticipated that 475 jobs will be created by the project.
Riverside will receive a $500,000 EDI grant and $6 million in Section 108 loan guarantees to promote development of a major retail project to be known as Chicago Plaza. The plaza will have about 225,000 square feet of retail space with a major home improvement store as the primary tenant, and will create an estimated 450 jobs. The funds will be used to purchase the site, demolish existing structures, and carry out any remediation required for new development to proceed. Total investment in the project will exceed $24 million.
Stockton will receive a $1 million Economic Development Initiative Grant, a new $500,000 Brownfield Economic Development Initiative Grant (for redeveloping abandoned and polluted former commercial and industrial sites) and $13 million in Section 108 loan guarantees to pursue five major redevelopment activities: The Rail Station Project, which includes a supermarket and other retail stores; the Hotel Stockton/Cineplex; the Fox Theater renovation; the Mercy Charities affordable housing development; and the remediation and development of the Weber Plaza site. The Rail Station project will include a 120,000 square-foot neighborhood retail component consisting of a supermarket and other retail stores. The office, theater, and retail projects will create about 575 jobs. The City estimates that the cost of entire downtown revitalization project will exceed $147 million.
DISTRICT OF COLUMBIA
Washington, DC will receive a $2 million EDI grant and $4.2 million in Section 108 loan guarantees to assist in the redevelopment of the former Camp Simms site into Congress Heights Plaza, a community shopping facility with a 12-screen movie theater. Both the EDI grant and the related Section 108 loan guarantees will be used to help offset extraordinary infrastructure development costs necessary to correct a 95-foot slope on the site. Congress Heights Plaza will include a 350,000 square-foot shopping center. The project is located within the District's HUD-designated Enterprise Community. Overall the project is expected to create 1,400 new jobs, with total development costs of approximately $35.8 million.
Savannah will receive a $1 million EDI grant and $3 million in Section 108 loan guarantees. As part of its program known as "Taking Action in Savannah Communities" (TASC), the City will use the funds to undertake a wide range of economic revitalization activities including: The Entrepreneurial Center which will assist residents in developing and sustaining microenterprises and small businesses by providing training, education, and capital access; the Revolving Loan Fund, which was initially established in 1995 with the purpose of assisting small business owners or potential business owners in opening or expanding their operations; and the Business Improvement Loan Guaranty Program, which will provide loan guarantees to commercial property owners, business owners, and community development corporations for commercial building rehabilitation. Approximately 150 jobs will be created. There will be additional project costs of $100,000.
Aurora will receive $650,000 in EDI grant and $6.5 million in Section 108 loan guarantees to improve conditions in the City's downtown. The funds will be available to businesses and developers to acquire and rehabilitate vacant buildings. The City intends to actively coordinate educational and job training programs with an estimated 350 new jobs to be created downtown. Other financial investment in the project will total nearly $1 million.
Indianapolis will receive a $1 million EDI grant, a new $1 million Brownfield Economic Development Initiative Grant (for redeveloping abandoned and polluted former commercial and industrial sites) and $6 million in Section 108 loan guarantees to undertake development of the Keystone Industrial Park, a 70-acre site. The funds will be used for acquisition and site preparation costs. The City will transfer the property to the Urban Enterprise Association for marketing and sale. An estimated 950 jobs will be created as a result of this project. Total development costs estimated at $50 million.
Des Moines will receive a $1 million EDI grant and $2 million in Section 108 loan guarantees to help finance development of a large-scale commercial/retail project in the city's Enterprise Community. The project will include a 35,000 square-foot supermarket and an additional 17,250 square-feet of general retail space. The project will create over 100 jobs. This development will serve as a catalyst to regenerate two adjacent neighborhood commercial areas. Total projected costs are estimated at $6.2 million.
Wichita will receive a $1 million EDI grant and $3 million in Section 108 loan guarantees to establish a small and minority business loan fund. The fund will be targeted to the City's Neighborhood Revitalization Strategy Area and will substantially increase capital availability for small and minority businesses in the area. Technical assistance and business education will also be available to businesses borrowers participating in the loan program. The City anticipates at least 115 new jobs will be created. The City expects that the program will leverage at least $6 million from private sector lenders.
Detroit will receive a $600,000 EDI grant and $1.8 million in Section 108 loan guarantees. The City will provide financing for a mixed use development on West Vernor Highway in southwest Detroit. The project will include construction of 42,700 square-feet of retail and commercial space and will be coordinated by the Southwest Detroit Business Association. It is anticipated that the West Vernor project will create up to 100 new commercial and retail jobs and will leverage $3.2 million in private financing. The project site is located within the City's Empowerment Zone.
Detroit will receive a $1.8 million EDI grant and $9.7 million in Section 108 loan guarantees to rehabilitate five buildings in the North Village Project into residential, retail and commercial space, as well as the construction of new loft residential and commercial space. The project will create over 150 jobs, 60,000 square-feet of retail/commercial space, and 400 additional housing units within Detroit's Empowerment Zone. The project is intended to strengthen the New Center area subsequent to the departure of General Motors' headquarters facility and will be undertaken by a development entity consisting of the New Center Council, Inc. and Crosswinds Communities, Inc. General Motors will convey some of its property in the area to the development entity to promote the redevelopment effort. Total project costs for the North Village Project are estimated to be in excess of $57 million.
St. Louis will receive $2 million of EDI funds and $20 million in Section 108 loan guarantees to for a new convention center hotel. The Section 108 loan guarantees will be loaned to the development entity, Gateway Renaissance Ventures, Inc. The proposed project will adaptively reuse two historic hotels, which will be complemented by construction of a new 900-room hotel next to the City's convention center. Both properties will be managed as Renaissance Hotels by Marriott International. It is estimated that the hotel will create 577 new full-time positions. Total project costs are anticipated at $180 million.
Jersey City will receive a $2 million EDI grant and $8 million in Section 108 loan guarantees to reconstruct and improve a vacant, deteriorated pier for reuse as the site for a 260-room hotel. The seven-story hotel, to be developed by the Mack Cali Realty Corporation, will be built on the south pier of the Harborside Complex, which is next to the Exchange Place PATH rail station. The City expects the hotel will create 200 permanent jobs. Total project costs are estimated at $32 million.
Albuquerque will receive $420,000 in EDI funds and $840,000 in Section 108 loan guarantees to complete a commercial project known as the Office and Job Opportunity Center for Barelas. The Albuquerque Hispanic Chamber of Commerce will develop, own and operate the Barelas project and will conduct job training activities at the facility. The building will also have space for neighborhood-based retail and service businesses. The Chamber will also locate its headquarters in the building and expects to expand its operations by creating an additional 15 jobs and leveraging an additional $175,000.
Rochester will receive a $566,000 EDI grant and $2 million in Section 108 loan guarantees to be used by Monroe Litho, Inc. to finance equipment purchases for a new production facility at City Center Industrial Park. The industrial park is located in the City's Enterprise Community. The company will build a 100,000 square-foot plant to expand its Rochester operation and create 150 new jobs. The Section 108 and EDI funds will leverage $5.8 million of other financial resources for the project.
Troy will receive a $97,395 EDI grant and $400,000 in Section 108 loan guarantees. The City will use the funds to assist the Albany Center for Economic Success in rehabilitating a portion of the Market Block Building. The Center is a not-for-profit corporation that assists minorities, women, and other disadvantaged entrepreneurs through the operation of business incubators. The Center will lease the rehabilitated space to Education 21, Inc. which provides technological training to disadvantaged children and adults. This would complement the existing Center incubator operation located at the Market Block building. The total project costs are estimated at $433,000. The project is expected to create 100 construction jobs.
Charlotte will receive $950,000 EDI funds and $2.5 million in Section 108 loan guarantees to undertake development of a 58,200 square-foot grocery store and retail shopping center to be known as Dalton Plaza. This project is one of the key recommendations to emerge from many local planning studies and community revitalization initiatives for this site on the West Boulevard Corridor. The 6.5-acre site is next to the Dalton Village HOPE VI public housing site and is within the City's Enterprise Community area. An estimated 120 jobs will be created by the retail operation and additional leveraging of $1.1 million will be added.
Winston-Salem will receive a $350,000 EDI grant and $1 million in Section 108 loan guarantees to develop at least 10 new restaurants in an area designated as "Restaurant Row" in the next several years. The entire project will be coordinated by the Downtown Winston-Salem Development Corporation. The City projects that at least 54 jobs will be created by the new restaurants and expects to leverage $3.3 million in other financing.
Akron will receive a $1 million EDI grant and $2 million in Section 108 loan guarantees to support development of the Middlebury Grocery and Shopping Center in central city area. The City will loan Section 108 funds to the project developer, the East Akron Neighborhood Development Corporation, to cover a portion of the construction costs with EDI being used to fund land acquisition costs. The Middlebury area of Akron is within the City's Enterprise Community area. About 130 jobs will be created. The project would include 62,000 square- feet of retail space. HUD funds will leverage over $6.5 million of other financial resources.
Toledo will receive $2 million of EDI funds and $26.7 million in Section 108 loan guarantees to support development of a new Jeep assembly plant by the Chrysler Corporation. The Section 108 funds, in conjunction with $1.7 million of EDI funding, will be used to acquire property, make relocation payments and install new infrastructure in support of the Jeep facility. This project will retain approximately 4,900 jobs in the City and will represent a total investment by Chrysler of more than $1.2 billion.
Philadelphia will receive a $2 million EDI grant and $27.9 million in Section 108 loan guarantees two support two business loan programs. One of the loan programs, the City-Wide HUD 108/EDI Loan Pool, represents the continuation of a program that has previously received $50 million of Section 108 funding and $2 million of EDI. The second loan program will be used to assist in financing redevelopment of the former Philadelphia Naval Shipyard into a business and industrial park. The projects will employ nearly 1,800 individuals. Both loan funds will be administered by the Philadelphia Industrial Development Corporation and could leverage private investment totaling $260 million.
Fort Worth will receive a $1.5 million EDI grant and $7.5 million in Section 108 loan guarantees. The City will use the funds to support the development and construction of a 100-150 room hotel and ancillary retail development in the Near Southeast Neighborhood. The hotel and retail development is part of the Heritage Center plan, an effort to bring about commercial redevelopment in one of the original African American communities in Fort Worth. The City anticipates 70 new jobs to be created and an additional $685,000 will be leveraged from private investments.
Yakima will receive a $1 million EDI grant and $4 million in Section 108 loan guarantees. The City will use the funds for the Great Western Redevelopment Project. Located in the heart of the City's downtown commercial area, the Great Western Building will be redeveloped into a 55-room hotel. When completed, the new hotel will help relieve a severe shortage of quality affordable hotel rooms in the Yakima area. An adjacent property will be developed into 26,000 square-feet of retail space. The combined project will create 145 new jobs. The public funds will leverage an additional $3.1 million in private financing.