MONTEREY PARK — The City Council, shrugging off one member's warnings about possible financial risks, has approved a modified contract with the developer of Atlantic Square Shopping Center.
The amended contract, designed to help Long Beach-based Champion Development Inc. finally get a $29-million construction loan for the project, could put the city at a greater financial risk should the project fail, Councilman Sam Kiang warned.
Under the new contract approved Monday, if Champion defaulted, the city would have to immediately pay off the loan in one lump sum, instead of assuming the loan and making payments. If it failed to do so, the property would revert to the bank, which might decide not to pursue the project.
But other city officials and developer Champion said this would occur only in a highly unlikely worst-case scenario.
The council voted 3 to 2 to approve the new contract, with Kiang and Councilman Fred Balderrama dissenting. Mayor Betty Couch and Councilwomen Judy Chu and Marie T. Purvis dismissed Kiang's concerns as unfounded.