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HUD PROVIDES $16.1 MILLION IN ASSISTANCE TO PROMOTE
WASHINGTON - Housing Secretary Andrew Cuomo today announced
nearly $16.1 million in assistance to six cities to promote
economic development and create jobs.
| -- $7.8 million (L) ||$1 million (G)
|| -- $1.9 million (L) ||$70,000 (G)
|| -- $1.8 million (L)
|| -- $1.5 million (L)
|| -- $1.5 million (L)
|| -- $550,000 (L)
HUD's Economic Development Loan Guarantee Fund and Economic Development Initiative grants provide communities with a source of financing for job creation, housing rehabilitation, and construction of public facilities and large-scale development projects. The majority of jobs created by each project are available to people with low-and-moderate incomes.
The loan guarantees, also known as the Section 108 program, save communities money by reducing the interest rate they are charged on loans from commercial lenders. The guarantees also make loans more readily available and often attract other sources of funding from local and state governments, non-profits and the private sector to complete financing for major job creation activities.
"The best way to bring a new prosperity to our cities and their people is to create jobs," Cuomo said. "The Clinton Administration's wise investment in job creation will help transform our cities, improve lives and strengthen our economy. "
Here is a summary of the loan guarantees and grants announced today:
Quincy will receive a $1 million Economic Development Initiative grant and $7.8 million in loan guarantees to finance the purchase, modernization and reopening of the historic Quincy Fore River Shipyard, which has been closed since 1986. The goal of the redevelopment is to create a world-class shipbuilding facility that is expected to provide over 1,000 jobs.
The project will assist Massachusetts Heavy Industries, Inc., which has contracts to build six tankers over three years, generating $240 million in revenue. The total cost of the project is over $83 million, with financing coming from a number of public and private sources in addition to HUD, including $54.5 million in bonds guaranteed under the U.S. Maritime Administration and $12.5 million in bonds from the Commonwealth of Massachusetts.
Detroit will receive $1.5 million in loan guarantees to provide assistance to the Michigan Repacking and Produce Company. A distributor of fresh fruits and vegetables, the company will use loan funds for working capital and to restructure existing debt. The project is expected to create 68 new jobs.
Detroit will also receive an additional $400,000 in loan guarantees -- as well as a $70,000 Economic Development Initiative grant -- for a mixed-use project located in the City's Empowerment Zone. Funds will be loaned to finance the rehabilitation of the Stuberstone Building, the former home of the Columbia Motor Car Co. The historically significant building will contain 9,500 square-feet of general commercial rental space, several commercial lofts and a mix of residential units. The project will create 40 full-time jobs.
Lancaster will receive $1.8 million in loan guarantees for downtown public improvements. The City will use the funds to restore deteriorating infrastructure in a historic and commercial area. These repairs will include street reconstruction, drainage upgrades, storm and sanitary sewer repair and replacement, installation of new traffic signals and street lights, sidewalk and curb replacement, and water-line improvements.
Tampa will receive $1.5 million in loan guarantees to assist in the construction of a new 47,891-square-foot Kash N' Karry supermarket located within a designated Enterprise Community. The supermarket is expected to create 151 new jobs and will serve almost 20,000 people within a one-mile radius.
Reno will receive $1.5 million in loan guarantees to provide financing for the acquisition and renovation of the local YWCA. The acquisition will allow the city to continue services provided by the public facility, such as child care, and new services such as before- and after-school programs for elementary students and at-risk teens. The acquisition will benefit northeast Reno, which is a low- and moderate-income residential area.
Jacksonville will receive $550,000 in loan guarantees to assist American Premier Lodging, Ltd. The developer will purchase furniture and equipment for a 120-room Hampton Inn that will serve the Jacksonville Convention Center area. The hotel is expected to create 50 jobs.
Content Archived: January 20, 2009