BURBANK : City Offers $100,000 Loan to Boost Jobs

Trying to revitalize the city’s Golden State Redevelopment area--hit hard in the past few years by the pullout of Lockheed Corp.--the city of Burbank has offered a $100,000 interest-free loan to a property owner in the hopes of keeping a longtime business in the city.

“I think we have an opportunity here to provide a little bit of stimulation in an area that needs stimulation,” Mayor George Battey Jr. said.

In the arrangement--approved by the City Council in a 4-1 vote on Tuesday--the city will loan $100,000 to the Antonini Family Trust, owners of property at 3010 N. San Fernando Road. The site is the potential home for Ryan Herco Products Corp., an industrial supply company that has been considering moving for about a year.

A condition for the loan is that the property be leased to Ryan Herco for 10 years. In each year of the 10-year lease, the city would forgive 10% of the loan as long as Ryan Herco employs 50 people in its first five years and 60 people in the second 10 years.

“We haven’t finalized the lease yet,” said Frank Gibbs, president of Ryan Herco Products Corp., on Friday, adding that other sites could still be considered.

Councilwoman Susan Spanos voted against the loan, saying she wanted more information on the lease arrangement.

The money would be used to pay for part of the $400,000 in renovations needed for a 36,000-square-foot warehouse building. Keeping Ryan Herco, which has been in Burbank for 45 years but has been looking at sites throughout the Los Angeles area and around the country, would mean $53,000 a year in tax revenue for the city, officials said.

The city has been struggling to keep employers in Burbank, especially in the Golden State Redevelopment Area, which lost Lockheed Corp. and about 15,000 jobs almost four years ago. The loss of businesses has been dramatic, said Battey, who with other officials have visited companies in attempts to keep them here.

“It’s scary to drive by a parking lot which a few years ago was full and now is almost empty,” Battey said. “It’s scary to go through a building which is almost empty. That area needs some help.”