Local News in Brief : Port to Loan Agency $25 Million
The Los Angeles Harbor Department has agreed to loan $25 million to the city Community Redevelopment Agency in a deal that will benefit both, officials say.
“We earn more money. They pay less money,” explained James Preusch, Port of Los Angeles financial manager.
Under terms of the agreement, approved Wednesday by the harbor commissioners, the port will withdraw the money from the $160 million it has in a city investment fund, which earns between 7% and 7.5% interest, and loan it to the CRA for two years, charging an interest rate about 1% higher than it is earning now. The CRA will save money by retiring loans on which it is paying between 9% and 9.5% interest.
The port expects to earn an additional $275,000 over the term of the loan, which will begin this month. The $25 million will help finance redevelopment projects that are backed by the CRA. Harbor commissioners said they want the money used for projects in the harbor area.
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