$2-Million Loan to Developers OKd

The Pomona redevelopment agency will loan developers of a proposed retail center $2 million for two years and give them $7.5 million in additional aid under an agreement approved by the City Council.

Debra Kline of Rancho Cucamonga and Calvin Weikamp of Moreno Valley plan a $32-million center on Towne Avenue, south of the Pomona Freeway, with a Toys R Us oulet scheduled to open as the first major tenant next year.

The $2-million loan, at a 20% interest rate, will provide $1.3 million to help the partners buy the property and $700,000 for soil tests, engineering and other work. Under the plan approved last week, the city also will pay for $847,500 worth of off-site improvements and enable the developers to borrow $6.7 million, which the city would repay over 20 years from sales tax revenue.

Douglas Dunlap, deputy executive director of the redevelopment agency, said the retail center will give the city $200,000 to $350,000 a year in new revenue beyond project costs.

Councilman Tomas Ursua said the projected income is small considering the city’s investment and that the council should have obtained more information before approving the agreement. But other council members said the project will provide new revenue, shopping opportunities and jobs. Other proposed tenants include a home improvement center, electronics store and discount clothing stores.