The Los Angeles redevelopment agency proposed Monday to provide $31.7 million in public grants and loans for a commercial and residential project next to the North Hollywood subway station.
Under an agreement set for a Thursday vote of the redevelopment board, developer Jerry Snyder and his partnership, SL NoHo LLC, would build a $194-million project with 810 apartments and lofts, 228,000 square feet of retail space for a supermarket and restaurants, 200,000 square feet of office space, a community health center, a child-care center and parking for 3,461 cars.
The agreement would allow the developer to build more office space if there is not enough demand for the housing.
Construction would begin by Jan. 31, 2003, on the first two phases and be completed in mid-2005.
To help make the project work in a blighted area of North Hollywood, the Community Redevelopment Agency proposes a loan of $14 million from the federal Department of Housing and Urban Development, a $1.8-million federal grant from the Economic Development Initiative to pay interest on the loan and $6.05 million in property tax revenue to repay much of the loan.
The city would provide an additional $15.5 million to help build 162 affordable housing units.
Also part of the agreement is a $1.4-million federal grant to widen Lankershim and Chandler boulevards and $5 million in city redevelopment funds and a $2-million federal grant to buy needed parcels and relocate current occupants.
"It's a fair deal for both the city and the developer," said Lillian Burkenheim, the redevelopment agency's project manager. "The city is going to get a first-quality development in North Hollywood."
Some residents questioned the amount of public subsidies for a project that has been significantly scaled back from its initial plan that was to include 10 film studios, a multiscreen movie theater and other amenities that since have been dropped.
The proposal for public subsidies drew objections from Victor Viereck, president of the North Hollywood Residents Assn., who said it helps a for-profit developer while diverting property tax revenue that otherwise might be available for public safety efforts.