Loan Application for Cornfield Project OKd

The City Council took the first steps Tuesday toward helping developers of the so-called Cornfield Project win a $10.5-million federal loan for the abandoned railroad property that once was considered a possible site for a new sports arena.

The developer, Majestic Realty Co., owned by Ed Roski Jr., who built the new Staples Center downtown, is attempting to build an industrial park on the 50 acres near Dodger Stadium.

But some community members and Friends of the Los Angeles River activists say the project fails to address other needs in the area, including more green space, affordable housing, river improvements and schools.

Councilman Mike Hernandez, whose district includes the corn-shaped property, said he supports the project and the federal funds for one reason only: jobs. He said developers would create hundreds of jobs for residents in the area.

Without comment, the council approved the loan application, a portion of which would be repaid by the developers with incremental property, sales and utility taxes.

Developers’ lobbyist Steve Afriat said that some of the concerns of the project’s opponents have been addressed, and that others will be before the project gets underway.

“I think everyone agrees the area needs economic stimulation, and they’d like to see something done with that site,” Afriat said. “I think the developers will incorporate everyone’s interests in the project . . . they’ve already incorporated [proposals for] the river and the river doesn’t run through the property.”

The mayor’s office also supports the development and has worked with Roski and others to ensure its success.

Roski, who built Staples Center along with Denver billionaire Philip Anschutz, has been involved in a number of recent projects aimed at revitalizing downtown, including the city’s failed attempt to win a pro football team back to the Coliseum.