Laura J. Feldman
August 18, 2011
HUD MIDWEST REGIONAL ADMINISTRATOR ANNOUNCES $8 MILLION LOAN GUARANTEE TO CLEVELAND
Former industrial area to be converted into greenhouse
CHICAGO - U.S. Housing and Urban Development Midwest Regional Administrator, Antonio R. Riley announced today that HUD is approving an $8 million loan guarantee to the City of Cleveland to clean up more than 10 acres of industrial land and develop the property into an employee-owned cooperative greenhouse.
HUD's loan guarantee will leverage $2 million in other public funding, more than $4 million in New Market Tax Credit Equity, and nearly $1.5 million in private sector investment to stimulate development of a nearly 300,000 square foot green house and 40,000 square feet of office and processing space.
"Today, we take another step forward in a new vision for Cleveland," said Riley. "This greenhouse is the keystone of a larger development that will create jobs and help revitalize this area."
The City of Cleveland expects the greenhouse will produce two million pounds of leafy greens and 300,000 pounds of fresh herbs per year for use within a 150-mile radius of Cleveland. The City has received commitments from local universities and hospitals to purchase from the greenhouse. In addition, local restaurants and grocery stores have expressed an interest in purchasing from the greenhouse.
According to the City's plans, this development will be part of a larger Green Industrial Park development, which includes approximately 50 acres east of the project site. The City states that the greenhouse is the initial development of the Green Industrial Park and is critical to the success of the Green Industrial Park. According to the City's application, the overall Green Industrial Park project is expected to generate over 500 jobs of which this project will result in the creation of 42 full-time equivalent jobs.
HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money from private investors at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. Such public investment is often needed to inspire private contributions, to provide seed money, or to simply boost confidence that many private firms and individuals need to invest in distressed areas. It allows them to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects that can renew entire neighborhoods.
HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD, or sign up for news alerts on HUD's News Listserv.