Local News in Brief : Mall Refinancing OKd
A $47-million refinancing of The Galleria at South Bay was approved Tuesday by the Lawndale City Council.
Lawndale participated in the funding of the Redondo Beach mall by obtaining an $8-million federal grant used in the redevelopment of the center in 1985. Redondo Beach was not qualified for the federal money because of its predominantly higher-income population.
In exchange for obtaining the funds, Lawndale received a second trust deed on the project and a share of the eventual profits of the center. Its approval was needed for the refinancing to proceed.
According to the developer, Southbay Associates, the refinancing will save the project an estimated $200,000 a year, which would make it more likely Lawndale would receive a share of profits. Thus far, the city has received no proceeds because mall expenses have offset the developer’s share of the receipts, officials said. The refinancing of the original $45.5-million loan entails $1.5 million in processing costs, bringing the loan total to $47 million.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
