WEST COVINA — The Community Redevelopment Agency has voted unanimously to issue $12 million in bonds to help finance an underground parking facility at the site of a proposed high-rise office building here.
Developer Ziad Alhassen plans to build the $40-million, 13-story Eastland Tower project at Barranca and Garvey avenues just north of the San Bernardino Freeway.
The agency, whose members are the West Covina City Council, has condemned one acre of land with that development in mind, said Chet Yoshizaki, redevelopment manager. He said the land is irregularly shaped, which makes the four-story underground parking structure necessary if the project is to be built.
Yoshizaki said the project is expected to create about 1,000 jobs in the city and raise about $300,000 a year in property tax revenue.
Although West Covina has an abundance of office space, Yoshizaki said, this project could attract firms in addition to those in the market for the existing smaller offices. He said the purpose would be to attract companies looking for sub-regional headquarters and needing more than 20,000 square feet of office space.
However, Alhassen said he still must receive a letter of credit from a lender to guarantee money to repay the $12 million to purchasers of the bonds. Alhassen, who has other office building developments in the city, said he would repay bond purchasers over a 10-year period.
Yoshizaki said the city should not wait until Alhassen has a letter of credit before issuing bonds because the market interest rates are favorable now.
Eastland Tower is intended to entice companies from downtown Los Angeles, Alhassen said, with the granite structure providing the same amenities as downtown buildings but at much cheaper rent. He said he hopes to have the facility completed by late 1987.