North Hollywood : City Loan Proposed for Arts Mini-Mall

A key City Council committee approved a $435,000 commercial earthquake recovery loan Wednesday for a demolished property at 5259 Lankershim Blvd., possibly paving the way for the creation of a nonprofit arts co-op.

The Housing and Community Redevelopment Committee endorsed a Community Redevelopment Agency loan agreement with John and Georgette Narguizian for the property across the street from the Academy of Television Arts and Sciences that formerly housed the Family Furniture business. The property was tenant-less when the earthquake struck.

The Narguizians, who also own neighboring properties leased to Eagles Coffee Pub and NewsStand Gallery and El Portal Theater, said construction on the site--now just a shell of wood and bricks--could begin within six weeks.

If approved by the full council, the no-interest loan must be repaid within 25 years, with payment deferred for the first five years.

“As soon as the paperwork goes through, we plan to start construction,” Georgette Narguizian said. That construction should be completed within four to six months.

Although the Narguizians do not yet have a tenant for the property, they are considering a long-term lease with Marina del Rey entrepreneur Jennifer Kelton, who ran the now-defunct Nomads nightclub in West Los Angeles. Kelton envisions the space as an arts mini-mall, complete with gallery space, a restaurant, a music and film venue and retail spaces.

The full City Council is scheduled to consider the loan Wednesday.