GLENDALE : Council May Lend Builder $1.6 Million

The developer of an old-town-style retail and office development in Glendale that is still struggling to succeed five years after it opened is asking the Glendale Redevelopment Agency for a $1.6 million loan to expand the project.

The City Council, acting as directors of the redevelopment agency, voted Tuesday to set aside the money in the agency’s 1995-96 budget to help Brand Development Co. build a new restaurant and expand an existing cinema at The Exchange on Maryland Avenue.

The development firm hopes that the improvements will inject new life into the two-block development, which has been plagued by economic problems. The Exchange is bordered by Brand Boulevard, Broadway, Wilson Avenue and Louise Street.

“There are not any tenants standing in line waiting to move into The Exchange because for the last two years The Exchange has been kind of slow,” said Councilman Larry Zarian, who called the proposed loan “a good move.”

“If we don’t create an atmosphere . . . we’re probably going to see more businesses go out of business,” Zarian said. “I think this is a step toward revitalizing.”

Bill Holderness, president of Brand Development, said the loan would finance a two-part project in which a restaurant would be constructed on Maryland on a vacant parcel between two office buildings. Also, the Mann 8 Theaters would be expanded by 10 screens, one of which would be a 500-plus seat auditorium that would allow the cinema to better compete for sought-after films.

The theater expansion would be built behind Louise’s Trattoria restaurant.

The redevelopment agency plans to help the developer with about $1.8 million in costs, including the $1.6-million loan for construction, about $100,000 to relocate an appliance store and a fast-food restaurant, and about $65,000 to waive sewer hookup fees for the restaurant.

Holderness said he sought the city’s help because the current income from his company’s property--which includes much of the eastern wing of The Exchange--is insufficient to get a bank loan for the project. A formal development agreement will be considered by the agency within the next few months.

The redevelopment agency’s previous financial involvement in the Exchange includes the financing and construction of a $7 million, 700-space parking garage and other assistance to developers.

Councilwoman Eileen Givens also praised the proposal, and said the agency should take more steps to make The Exchange work.

“We’ve got to get something happening down there,” Givens said.