Agency OKs Entertainment Loan Program

The Community Redevelopment Agency has approved a special loan program that city officials hope will persuade entertainment businesses to stay or relocate in Hollywood.

Concerned about the decline of entertainment jobs in Hollywood, the redevelopment agency wants to provide interest-free loans of up to $250,000 to firms directly or indirectly involved in the production and distribution of feature films, TV and radio shows, and commercials, cable programming and the music recording industry. The action, approved by the CRA board March 5, requires City Council approval.

Loan recipients must own their own building or have leases of 10 years or longer to be eligible, and they must be within the 1,100-acre Hollywood Redevelopment Project area. The principal on the 10-year loans will be forgiven at the rate of 10% a year unless a company violates the agreement or ceases to operate in Hollywood. At the end of 10 years, the agency will write off the full amount, CRA officials said this week.

The CRA has budgeted only $319,000 for the entertainment loan program through June but hopes to make available more money once it sells about $40 million in bonds for various Hollywood redevelopment efforts.

In 1990, California lost almost $3 billion in film production to other states, according to CRA officials.