STANTON : Housing Project Gets 5th Permit Extension

The City Council has given the developer of a stalled 335-unit housing project its fifth extension while the company awaits construction financing from a lender in the Philippines.

The council approved the 180-day extension unanimously Tuesday night.

The city gave the Jan Development Co. approval in 1989 to build the Park Stanton Place, a housing project for low-income senior citizens, at 7622 Katella Ave., but the company has had difficulty securing loans.

Edward Czucker, vice president of Jan Development Co., said the recession caused the delay.

“It’s made financing more difficult with the local institutions,” he said.

Czucker said he plans to break ground in October on the $24-million project, though the extension gives him until January, 1994, to begin.

City planning manager Mark D. Lloyd said he believes Jan Development Co. is sincere about building the project. “It’s just a heck of a nut to crack right now, to obtain financing,” he said.

Lloyd said Jan Development Co. has already spent about $7.5 million on the land purchase, construction financing and various permits.

Included in the application for the time extension was a copy of a certified check for $80,000 sent to the lender, Cathay Investment Fund in Manila, as first payment on a $17.75-million construction loan.

“When you’ve got somebody who’s spending those kinds of dollars, it does show that their intentions are to go ahead with the project,” Lloyd said.

The developer has also gotten county permits for sewer and drainage lines, Lloyd said.

Interim City Manager Stephen B. Julian said he is not surprised that the Jan Development Co. had to find a loan through a foreign lender. “I think there is an awful lot of offshore money that is still around,” he said. “I’ve seen that used in housing projects.”

The county in July, 1990, loaned $1 million to the project, and has expressed concern that if nothing is built, it will lose its investment.

Bob Pusavat, the county’s director of housing and redevelopment, said that after so much delay, he is just hoping the project will be built.

“At this point, we’ll just have to wait for them,” he said. The terms of the loan do not call for repayment until 1995.

Pusavat said he doubted that the Orange County Housing Authority could recover the loan by foreclosure, since there may not be enough value in the unfinished project.

Stanton has loaned no money to the project, but has offered to make $500,000 available when Jan Development Co. gets the construction loan, Lloyd said.

Julian said if the developer is not able to break ground within the new time extension, the city may need to “get a fresh look” at the project before granting another extension.