2006 Section 108 Public Facility Projects - Puerto Rico

Youth Sports Education Center
Isabela, PR
Section 108 Guaranteed Loan- $4,850,000

The Municipality of Isabela will construct a Youth Sports Education Center as the second phase of this project. The project's first phase included the planning and design of the center's construction and the demolition of a deteriorated basketball court to clear space for the center. The center will be a 48,000 square foot, two-story building built on a two-acre parcel owned by the Municipality. It will provide youths in the community, between the ages of 10 and 19, sports and education services. It will include an electronic library, game rooms, a gymnasium, a multipurpose tennis, volleyball, and basketball court, dorms for children's sport camps and concessionaires for food, books, and sports equipment. The Section 108 Guaranteed Loan will be used to fund the entire construction of the project.

The Community Development Block Grant (CDBG) national objective for the Municipality's use of the guaranteed loan is to benefit low-moderate income persons as a limited clientele (youths between the ages of 10 and 19).

The Municipality will repay the guaranteed loan over a twenty-year period, paying interest only for the first two years. The Municipality will use its CDBG allocation to repay the guaranteed loan. To secure repayment of the Section 108 Guaranteed Loan, the Municipality pledges a first lien position on land and the building of the Youth Sports Education Center, as well as its CDBG funds.

Sports and Entertainment Center
Maunabo, PR
Section 108 Guaranteed Loan- $3,000,000

The Municipality of Maunabo will construct a Sports Court and Entertainment Center on a 2.92-acre lot located within the Municipality's Sports Complex. The project involves demolishing the existing track and soccer field and constructing the 34,555 square foot Center, which will include a lobby, ticket booths, concession areas, conference areas, restrooms, dressing rooms, removable stage and bleachers, a maintenance room, and outdoor recreational space. The Center will have a seating capacity of 2,500 and be used for recreational and entertainment purposes. In addition, the existing parking will be increased from 90 parking spaces to 500 parking spaces.

The Municipality will utilize the Section 108 Guaranteed Loan to assist with the construction costs of the project and to create a debt service reserve. In conjunction with the Section 108 Guaranteed Loan, the Municipality will also utilize $1,500,000 of its own funds for a total project cost of $4,500,000.

The Community Development Block Grant (CDBG) national objective for the Municipality's use of the guaranteed loan proceeds is to benefit low-moderate income persons on an area basis and through job creation. The center will serve the entire Municipality, which has a low-moderate income population of 67.3% and it will create 15 new full-time jobs.

The Municipality will repay the guaranteed loan over a twenty-year period, paying interest only for the first two years. The Municipality will use Section 108 proceeds from the debt service reserve for interest payments, and CDBG funds from the Commonwealth of Puerto Rico to repay the guaranteed loan. To secure repayment of the guaranteed loan, the Municipality will provide a sole first priority lien on the center and the Commonwealth of Puerto Rico's will pledge its CDBG funds, since Maunabo is a CDBG non-entitlement entity that receives CDBG funding from the Commonwealth.

Municipal Activity Center
San Lorenzo, PR
Section 108 Guaranteed Loan- $6,000,000

The Municipality of San Lorenzo will finance the site acquisition and construction of a Municipal Activity Center, located along the Municipality's Jose de Diego Street. The project will be a 72,000 square foot, two-story building including twelve movie halls, a thirty two lane bowling alley which includes a snack bar and an internet caf�, a fast food alley, 4,265 square feet of retail space, 720 parking spaces, and administrative and storage areas.

The Section 108 Guaranteed Loan will be used for the acquisition of the land, for the construction of the center, and for related site improvements. In conjunction with the Section 108 Guaranteed Loan, the Municipality will also use $300,470 in Municipal Funds for a total project cost of $6,300,470.

The Community Development Block Grant (CDBG) national objective for the Municipality's use of the guaranteed loan funds is to benefit low-moderate income persons through job creation. The project will create 184 new full-time jobs.

The Municipality will repay the Section 108 Guaranteed Loan over a 20-year period, paying interest only in the first three years. The Municipality will use project revenues to repay the guaranteed loan. Any deficiencies in project revenues for debt service in early operation of the center will be paid by the Municipality. To secure repayment of the guaranteed loan, the Municipality pledges a first lien and assignment of rents on the Municipal Activity Center. Also, since the Municipality of Lorenzo is a non-entitlement community which receives its CDBG funding from the Commonwealth of Puerto Rico's CDBG allocation, the Commonwealth has certified to HUD that it will pledge its CDBG funds as security for the repayment of Municipality's Section 108 Guaranteed Loan.

Public Facility Projects
Toa Baja, PR
Section 108 Guaranteed Loan- $12,157,000

The Municipality of Toa Baja will finance, develop and operate seven public facility projects to address immediate needs in the community, improve the conditions and appearance of the Toa Baja area, enhance the economic development opportunities of the low-income population, and achieve the community development objectives. The Section 108 Guaranteed Loan will be used to fund all of the costs of the seven projects.

The first project is the construction of a basketball court in the Municipality's Campanilla Community. This roofed basketball court, which is located in the northern section of Campanilla, will be beneficial to the large number of families with children that reside in the area. Also, the Municipality will carry out various projects and activities to promote community integration and development at the facility, including a variety of innovative and special activities to promote the participation of children, young people, elderly and persons with disabilities. The project will serve an area where 78.93% of the residents are low-moderate income persons. This project will have a total cost of $200,000. The Community Development Block Grant (CDBG) national objective met by this eligible activity is benefit to low- and moderate-income persons on an area basis.

The second project is the construction of a Toa Baja Hall of Fame on Avenida Sabana Seca by the Toa Baja City Hall. The building will be in recognition of the excellence of service and achievement of Toa Baja residents for their contributions to the progress of the Municipality. The building will be 12,000 square feet and will include the Hall of Fame, six exhibition halls, a conference and meeting space capable of hosting small meetings and events involving less than 300 attendees, and a parking area. This public facility project will provide cultural benefits to all the residents of Toa Baja that has a population of which 53.8% is low- and moderate-income persons. These persons will be the primary beneficiaries of this facility. The total cost of the project is $1,000,000.

The third project is the construction of a community center for the Ingenio Community in Toa Baja. The community center will be located behind the public school in the Ingenio Community. The center will provide residents a place where they can partake in different social, community and cultural services and activities. The building will be 9,200 square feet and will include an outside parking area. The service area for this public facility is the Ingenio Community, which is primarily residential and 85.66% of these residents are low- and moderate-income persons who will be the project's primary beneficiaries. The total cost of the project is $1,000,000.

The fourth project is the rehabilitation of the community center in the 7th section of the Levittown Community, Sabana Seca Ward, adjacent to an existing basketball complex. The center will provide the residents of the Levittown and Sabana Seca Communities a place where they can participate in different recreational, social and cultural activities. Approximately 53% of these communities' residents are low- and moderate-income persons which will benefit from the center's activities. The total cost of the project is $1,000,000.

The fifth project is two kinds of public improvements that involve 1) the paving of streets in various neighborhoods of the Municipality including Villa Marisol, Villa Kennedy, Sabana Seca, San Jose, Parcelas Nuevas, and Campanilla; and 2) the construction of infrastructure, including pipes, gutters, manholes, and headwalls to control water in the Municipality's Ingenio Community, Villa Olga Community, Macum Community, San Jose and Campanilla. All of these neighborhoods and communities have low and moderate income residents that exceed 56% of their total populations. This public improvement project will cost $3,957,000.

The sixth project is the construction of a Head Start Center in the Levittown Community of Toa Baja. The center will be a four-room, 16,000 square foot building consisting of multiple classrooms, administrative offices, multi-purpose rooms, nursing rooms for mothers with babies, a fully equipped kitchen, as well as an outdoor playground with recreational equipment and a parking area. The Head Start Center, which will be located at the intersection of Sabana Seca Avenue and Los Dominicos Avenue will provide comprehensive pre-school services and education to help at-risk three and four-year-old children of low and moderate income families throughout Toa Baja so they can be ready to learn upon entering elementary school. The total cost of the project is $3,000,000.

The seventh project is construction of the Toa Baja Multipurpose Community Center. The center will be a 12,000 square foot structure consisting of activity rooms, bathrooms, and office space, as well as electrical, sanitary and water control infrastructure, a parking area, fencing and landscaping. The project will be located in the Campanilla Community at Barrio Media Luna. The center will be used by students, organizations, businesses and other interested parties to hold various community events, including conventions, seminars, conferences, school plays, senior citizen programs and services, cultural events, and recreational and social events for all ages in Toa Baja, which has a low and moderate income that is over 53% of the total Municipality population. They will be a primary beneficiary of the use of this center. The total cost of the project is $2,000,000.

The Community Development Block Grant national objective for the Municipality's use of the guaranteed loan funds for these various public facility projects is to benefit low-moderate income persons on an area basis as all of the areas in which the projects are to be located consist primarily of low-moderate income persons.

The Municipality will repay the Section 108 Guaranteed Loan over a twenty-year period, paying interest only for the first four years. The Municipality will repay its Section 108 Guaranteed Loan using its yearly CDBG entitlement funds. To secure repayment of the guaranteed loan, the Municipality pledges a first lien on the real property, as well as its CDBG funds.