The city has hired a consultant to help it determine whether to accept an offer from the Galleria at South Bay to pay off early an $8-million loan from the city.
Forest City Enterprises of Cleveland, which owns the 2-year-old Redondo Beach shopping mall, began making $48,000 monthly payments on the loan in February. The payments are scheduled to continue for 18 years, when the developer will make a final balloon payment of $5 million, bringing the total, with interest, to more than $15.3 million.
Forest City Enterprises last fall offered to pay off the loan, but a specific price has never been discussed, according to Paula Burrier, the city's director of housing and community development.
The city obtained the money to provide the loan from a federal Department of Housing and Urban Development grant. As a condition of the loan, the Galleria agreed to hire Lawndale residents for at least half of the available jobs at the mall.