Glendale Lends Developer Money for Welfare Offices

The Glendale Redevelopment Agency on Tuesday agreed to lend $1.7 million to private developers who plan to build a new county welfare office in south Glendale to replace an office in the heart of a prime downtown area.

Agency members voted 3 to 2 to borrow the money from Bank of America to lend to the Howard Platz Group and Brand Development Co. to purchase a 2.5-acre site at 4666 San Fernando Road. The developers will build offices for the county Department of Public Social Services, currently housed in overcrowded quarters at 225 E. Broadway.

City officials have for years sought a new location for the welfare building, which they said does not fit in with a redevelopment zone called The Exchange. That two-block area--bounded by Brand Boulevard, Broadway, Wilson Avenue and Louise Street--is being revitalized with upscale retail shops, offices, restaurants and a movie complex.

The search for a new welfare office site has been difficult because few parcels available in Glendale are large enough or close enough to public transportation to meet criteria set by the county. Several previous purchase proposals fell through because developers and the county did not reach an agreement in time to complete the deal.

Since the city is paying half of the $3.4-million purchase price for the San Fernando Road site, the land will be secured while developers negotiate with the county, said Jeanne Armstrong, redevelopment director. The $1.7 million plus interest is to be repaid by the developers within a year, she said.

The two agency members opposed, Chairman Larry Zarian and Ginger Bremberg, said they object to using the city’s financial backing for a private developer. The developers, however, said they have agreed to relocate the welfare office as a public service and will not profit from the deal in order to keep costs low to the county. The city is backing the deal in an effort to encourage the county to move its offices.