Campus: CSU Long Beach -- October 26, 2001
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.