City of South Gate Receives $5.1 Million From Shopping Center Developer in Successful P3 Deal
SOUTH GATE, Calif. (PRWEB) June 14, 2018 -- The City of South Gate has received $5.1 million from Primestor Development, Inc., developer of the highly successful azalea Regional Shopping Center, located on Atlantic Avenue and Firestone Boulevard in South Gate; with a 95% Latino population base. Included in the Project Agreement between the City and Primestor was a unique economic development "participation formula" that Kosmont helped structure, whereby the City was eligible for a one-time performance-based share of profits if azalea exceeded valuation targets upon sale or recapitalization.
On June, 2018, the City Council authorized these funds for development of a City Employment Resource Center and an economic development revolving loan program, both to continue the momentum established by the azalea project. According to Michael Flad, City Manager, “the azalea participation funds set up the ability for the City to make these special programs a reality, as well use ongoing revenue from azalea sales tax receipts, to pay for 3 additional police officers in the FY18/19 Budget. This is what successful economic development is all about, community prosperity and expanded safety services for South Gate.” According to Michael Flad, “the City had not added any public safety positions in over a decade”.
Located just south of downtown Los Angeles, South Gate's population is 99,500 and consists of some of the most dense neighborhoods in Los Angeles County with an average household size of 4.1 over 7 square miles. Larry Kosmont, President & CEO of Kosmont Companies reflected that despite the recession downturn during the middle of the project, “the City stuck to its mission and committed to getting this project delivered for the citizens of South Gate. The result is a great community public living room as well as a beautiful retail center that spins off jobs and $3 million in annual tax revenue”
Kosmont Companies represented the City as its real estate and financial advisor, from the initial land acquisition stage to entitlements to the Project Agreement valued at around $100 million. As part of a recapitalization, the City received $5.1 million from Primestor which on June 12, 2018, was allocated by the City Council in its FY 2018/19 budget. The allocation included placing $2.1 Million into emergency reserves for long term financial security.
Kosmont Companies specializes in helping communities manage their financial future through fiscal controls and strategic execution of real estate and economic development projects.
Kosmont Realty, a licensed California brokerage firm, buys, sells, and leases properties for public agencies, and provides capital sources to cities and the private sector in pursuit of public/private and economic development transactions.
Larry Kosmont, Kosmont Companies, http://www.kosmont.com, +1 (213)507-9000, [email protected]
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