CUOMO ANNOUNCES $12 MILLION IN HUD ASSISTANCE TO JACKSONVILLE TO CREATE 400 JOBS IN NEW HOTEL, GARAGE AND WAREHOUSE

WASHINGTON - Housing and Urban Development Secretary Andrew Cuomo today announced $12 million in HUD economic development loan guarantees to Jacksonville, FL to assist the city in financing construction of a convention center hotel, parking garage, and warehouse and distribution center that will create a total of about 400 jobs.

Cuomo presented Jacksonville with two loan guarantees:

• $10.8 million to help Clarkson Company and Interstate Hotel Development Corporation finance construction of a 400-room convention center hotel and a 500-space parking garage in the LaVilla/Downtown area, creating about 350 jobs.

• $1.2 million to help South Atlantic Cold Storage of Jacksonville, Inc. purchase equipment for a 249,000-square-foot warehouse and distribution center to be built at the City's Imeson International Industrial Park, creating about 50 jobs.

Many of the jobs at the hotel, parking garage and warehouse are expected to go to people with low and moderate incomes living in the area.

"This is an outstanding example of one of the Clinton Administration's successful job-creation initiatives," Cuomo said. "Once again, President Clinton's emphasis on creating good jobs for American workers is paying off, helping families build better lives and helping Jacksonville build a stronger economy.

Cuomo sent HUD Secretary's Representative Davey Gibson to Jacksonville to make the presentation. Gibson was joined by Congresswomen Corrine Brown and Tillie Fowler in a news conference today to announce the loan guarantees.

Senator Bob Graham said: "I am extremely pleased that Jacksonville is going to receive federal assistance in its continuing effort to revitalize its downtown areas. This $10 million grant is an important step forward in solidifying the First Coast as one of the nation's best places to live, work and do business."

Congresswoman Corrine Brown said, "It is these kind of investments in our downtown area that will reinvigorate our cities and stimulate the economy. This is a great example of partnerships by the public and private sector. By lending a hand to the Clarkson Company and the South Atlantic Cold Storage Company, the federal government has made it possible for the City of Jacksonville to assist with private developments. In the end these investments will benefit everyone in this city, and I see this as a win-win for all of us."

Congresswoman Tillie Fowler said: "This is great news for downtown Jacksonville and our entire city. I am pleased that HUD recognizes the potential of Jacksonville and has decided to invest in its future."

HUD's Economic Development Loan Guarantee Fund provides communities with a source of financing for job creation, housing rehabilitation, and construction of public facilities and large-scale development projects.

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 Clinton Administration has proposed a new $400 million Community Empowerment Fund to help communities like Jacksonville create jobs. Cuomo said the Administration expects this proposal to leverage an estimated $2 billion in private sector loans to businesses and to create and retain an estimated 280,000 jobs for economically distressed communities across the nation.

Recent reports have indicated that many people are leaving the welfare rolls without finding permanent jobs. Cuomo said that Clinton Administration job creation programs as well as President Clinton's plan to create 50,000 new welfare-to-work housing vouchers are both key elements to the success of welfare reform.

The welfare-to-work housing voucher proposal would enable welfare recipients to move closer to areas where jobs are being created and would assist job creation and retention efforts by providing for the critical housing needs of welfare recipients in transition.