City of Long Beach, Cal State Long Beach Announce U.S. Navy's Erasure of $1.4 Million Debt on CSULB Technology Park Property

The City of Long Beach and California State University, Long Beach announced today (Friday, Oct. 26) that the U.S. Navy has forgiven a $1.4 million debt on its former 30-acre, Naval Housing Cabrillo property, which is now the future site of the CSULB Technology Park.

The Navy recently approved the application for a No Cost Economic Development Conveyance (EDC) Modification for the property. Under the terms of the original agreement, a promissory note in the amount of $1.04 million was established with an initial payment due in 2008. With interest, the note had grown to $1.4 million.

"Forgiveness of this debt is a solid endorsement by the Navy of the long-lasting benefits the technology park will have for this community," said Robert C. Maxson, president of CSULB. "The City of Long Beach and the Navy have always shared confidence in how this park will benefit our citizens in terms of job growth and economic development.

"This is a great vote of confidence in Cal State Long Beach," Maxson continued. "Congressman Steve Horn was very instrumental in making this happen for the university."

"After years of diligent effort between the City and the Navy, I am elated that the Navy has seen fit to forgive the $1.4 million payment for this very important project," said Long Beach Mayor Beverly O'Neill.
The CSULB Foundation oversees development of the property, which will aid in the community's economic recovery from the closure of the Naval facilities. Located at Pacific Coast Highway and the Terminal Island Freeway, the CSULB Technology Park will create up to 600,000 square feet of new "flex-tech" buildings at the site, attracting new companies to the city of Long Beach and creating many new jobs.

In July 1996, the Navy transferred the housing property to the City of Long Beach as the Local Redevelopment Authority. Nationwide, it was the Navy's first land transfer nationwide for economic development. The property was then transferred to the CSULB Foundation in accordance with the City of Long Beach's Local Reuse Plan for closed Naval facilities in the community.

The CSULB Foundation has completed the demolition, abatement and infrastructure improvements at the technology park site. The development of the project has been facilitated by $5.6 million in Defense Conversion Grant funding from the U.S. Department of Commerce's Economic Development Administration. The project also received $600,000 in Defense Adjustment Matching Grant funding from the California Trade and Commerce Agency.

The technology park's primary focus is to aid the city of Long Beach'seconomic development, but Cal State Long Beach is also planning to foster partnerships with companies within the park.

"Some of these companies may need help in product research or training their workforce, and Cal State Long Beach is geared up to help them do that, often at costs less than if they do it themselves," said Mo Tidemanis, CSULB's director of property development. "Through these companies, we may also be able to provide employment opportunities for students or faculty as consultants or employees."

Watt Commercial Properties has been selected to develop the first phase of 180,000 square feet of new buildings at the site. Upon completion of construction finance documentation, construction is expected to begin on Phase I of the project in early 2002 with completion anticipated in the third quarter.