City Secures Federal Funding for NTC Cultural District
Combination of More Than $6.6 Million Loan and Grant Funding Gives Lift to Restoration Efforts

SAN DIEGO, CA - The City of San Diego Redevelopment Agency today announced that it secured a combination of more than $6.6 million in federal loan and grant funding to assist in the redevelopment of a 28-arce cultural district within the Naval Training Center (NTC) Redevelopment Project Area.

The City's Community and Economic Development Department, which manages the NTC Redevelopment Project in partnership with master developer The Corky McMillin Companies and the NTC Foundation, has secured $5,910,000 in U.S. Department of Housing and Urban Development (HUD) Section 108-Guaranteed Loan funds to transform a portion of the community into a world-class arts and culture center.

The City was also awarded a $700,000 grant by the Brownfields Economic Development Initiative, which is funded by HUD. The City participated in an extensive nationwide competition in which more than 80 applicants vied for $29.4 million in funding designed to help rebuild and restore communities in need. San Diego is one of 21 project communities around the country to be awarded funding.

The cultural district, known as the "Promenade Centre," will highlight culture, arts and science on 28 acres of the former base. The Promenade Centre will provide space for artists' studios and co-ops, art galleries, instructional camps, museums, dining and meeting space. The federal grant will be used to pay the interest on the Section 108 Loan in the early stages of the redevelopment. The Loan proceeds will be granted to the NTC Foundation, a non-profit organization that will rehabilitate four deteriorated historic buildings that will be leased to cultural and community organizations.

"The federal loan and grant funding provides much-needed funding for the development of the Promenade Centre, which is a vital component to the NTC Redevelopment Project Area," said Hank Cunningham, assistant executive director of the San Diego Redevelopment Agency. "The Promenade Centre will provide a vibrant cultural district for San Diego and will offer a major new attraction for businesses, artisans, tourists and residents alike."

The Promenade Centre is the heart of the new neighborhood, now known as Liberty Station, which is taking shape on San Diego Bay. This district comprises twenty-eight acres throughout the historic core of the former Naval base. Eventually, it will be located in twenty-six historic buildings, which will total approximately 360,000 square feet. The Promenade Centre will feature galleries, festivals, concerts and theater with many more uses possible. Additionally, office space for non-profit organizations and space for specialty retail will be available to lease.

The NTC Foundation, a private, non-profit corporation, was formed to develop and operate the Promenade Centre. It is through the activities of the Foundation that the district will embrace exploration, innovation and creativity while fostering a collaborative spirit between tenants and guests.

"The Promenade Centre will highlight culture, arts and science by providing space for artists' studios and co-ops, art galleries, instructional camps, museums, dining and meeting space," said Murray Galinson, Chairman of the Board of Directors of the NTC Foundation. "This funding is the catalyst that the Foundation needs to continue on its aggressive timeline, ensuring that with the opening of the Promenade Centre in 2005, NTC will be returned to the people of San Diego and further position San Diego as one of America's major cultural hubs."

Planning for the new community at NTC, which was named Liberty Station, began in 1993 after the U.S. Navy announced it would close the base under the federal Base Closure and Realignment Act. The City of San Diego's vision for the property, developed through extensive public input, is to create a center that celebrates San Diego's maritime history and opens public access to the waterway. This new community will anchor revitalization of the northern area of San Diego Bay. It will also support education, training, and research and development programs. Designated as a Local Agency Military Base Recovery Area (LAMBRA) tax incentive area, state tax credits will also be available to new businesses locating to the area.

The NTC Redevelopment Project Area is expected to create more than 8,000 permanent jobs, $2.2 million in annual property tax revenue, and $875,000 in annual tax revenue set-aside for low/moderate income housing. The approved redevelopment program includes: 350 new single family and multifamily homes, 495,000 sq. ft. of educational space, 380,000 sq. ft. of new office/R&D facilities, two hotel sites equal to 1,000 rooms, and a mixed use precinct. The mixed-use area includes a 324,000 sq. ft. commercial area including office and retail space, restaurants, museums, recreational facilities and a 22-acre golf course with a driving range. Parks and open space are also included, with 46 acres for NTC Park and 54 acres of open water area (boat channel).

For questions about the NTC Redevelopment Project, contact the City's Community and Economic Development Department/Redevelopment Agency at (619) 533-4233 or visit the City's web site at www.sandiego.gov.

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The City of San Diego Redevelopment Agency eliminates blight from designated areas, as well as achieves the goals of development, reconstruction and rehabilitation of residential, commercial, industrial, and retail districts. Redevelopment is one of the most effective ways to breathe new life into deteriorated areas plagued by social, physical, environmental or economic conditions that act as a barrier to new investment by private enterprise. The City of San Diego Redevelopment Agency consists of three divisions: the City Redevelopment Division (which provides overall agency management and is housed in the City of San Diego Community and Economic Development Department), the Centre City Development Corporation and the Southeastern Economic Development Corporation.