City makes sweet deal with Porto’s
Dec 12, 2008 | 983 views | 7 
| 11 
| 
| 
| 11 | |
DOWNEY - Bolstered by assurances that more money exists in city reserve funds than originally speculated, the City Council this week approved a $750,000 agreement to bring Porto’s Bakery to Downey.
The Cuban bakery, with two other locations in Burbank and Glendale, will open their new bakery at 8233 Firestone Boulevard.
The agreement is part of a massive $16 million investment Porto’s Bakery will pour into Downtown Downey, which includes the purchase of the mostly vacant property, rehabilitation of a five-story office complex, and construction of a new parking garage, city officials said.
As part of the agreement, Porto’s Bakery will be required to produce 40 full-time jobs for at least five years, although city officials said they expect the restaurant to employ up to 90 full- and part-time staff.
“It will be a stimulus to get the entire downtown redeveloped,” Councilman David Gafin said of Porto’s Bakery.
The deal initially failed last week after the City Council hedged at depleting the city’s entire redevelopment reserves on a single project.
But Gilbert Livas, the city’s deputy city manager for economic development, said about $700,000 in related redevelopment funds exists.
“With the new circumstances that there was a heck of a lot more money in reserves than I was led to believe a week ago, I am very willing to go forward and grant $750,000 because that will leave $950,000 for other projects...” Gafin said.
City officials hope Porto’s Bakery, which could begin construction as early as May, will bring a “spark” to Downey’s downtown.
On average, Porto’s draws 2,000 customers per day to each of their Glendale and Burbank locations, Livas said.
Conservative estimates by Tierra West Advisors, an independent economic consultant hired by the city, say Downey will receive about $808,000 in new sales and property tax income over a 10-year period as a result of the project.
The amount could double to $1.6 million under “optimal conditions.”
“We couldn’t find a better business (to bring downtown),” said Mayor Mario Guerra. “I think this…agreement in relative terms is a very good deal for the city with the future to come.”
Newly-elected Councilman Luis Marquez agreed.
“I see this as being a good project, a great project,” he said. “This is what the downtown community needs.”
Mayor Pro Tem Anne Bayer, the lone council member to vote against the deal, praised Porto’s Bakery but said she hesitated to grant one business such a large amount of money.
“I feel that we are so blessed to have Mr. Porto who wants to come in and put his bakery with us,” she said. “The problem I have is giving this type of money to one entity. There are lots of businesses that can be helped in the redevelopment section that I think we need to look at.
Earlier this year, the city took control of the Avenue Theatre and Verizon building with an eye towards redeveloping the downtown.
**********
Published: December 12, 2008 - Volume 7 - Issue 34
The Cuban bakery, with two other locations in Burbank and Glendale, will open their new bakery at 8233 Firestone Boulevard.
The agreement is part of a massive $16 million investment Porto’s Bakery will pour into Downtown Downey, which includes the purchase of the mostly vacant property, rehabilitation of a five-story office complex, and construction of a new parking garage, city officials said.
As part of the agreement, Porto’s Bakery will be required to produce 40 full-time jobs for at least five years, although city officials said they expect the restaurant to employ up to 90 full- and part-time staff.
“It will be a stimulus to get the entire downtown redeveloped,” Councilman David Gafin said of Porto’s Bakery.
The deal initially failed last week after the City Council hedged at depleting the city’s entire redevelopment reserves on a single project.
But Gilbert Livas, the city’s deputy city manager for economic development, said about $700,000 in related redevelopment funds exists.
“With the new circumstances that there was a heck of a lot more money in reserves than I was led to believe a week ago, I am very willing to go forward and grant $750,000 because that will leave $950,000 for other projects...” Gafin said.
City officials hope Porto’s Bakery, which could begin construction as early as May, will bring a “spark” to Downey’s downtown.
On average, Porto’s draws 2,000 customers per day to each of their Glendale and Burbank locations, Livas said.
Conservative estimates by Tierra West Advisors, an independent economic consultant hired by the city, say Downey will receive about $808,000 in new sales and property tax income over a 10-year period as a result of the project.
The amount could double to $1.6 million under “optimal conditions.”
“We couldn’t find a better business (to bring downtown),” said Mayor Mario Guerra. “I think this…agreement in relative terms is a very good deal for the city with the future to come.”
Newly-elected Councilman Luis Marquez agreed.
“I see this as being a good project, a great project,” he said. “This is what the downtown community needs.”
Mayor Pro Tem Anne Bayer, the lone council member to vote against the deal, praised Porto’s Bakery but said she hesitated to grant one business such a large amount of money.
“I feel that we are so blessed to have Mr. Porto who wants to come in and put his bakery with us,” she said. “The problem I have is giving this type of money to one entity. There are lots of businesses that can be helped in the redevelopment section that I think we need to look at.
Earlier this year, the city took control of the Avenue Theatre and Verizon building with an eye towards redeveloping the downtown.
**********
Published: December 12, 2008 - Volume 7 - Issue 34
Videos
Eric Pierce's Blog
Planning Commission to consider ban on medical marijuana dispensaries**
2 days 14 hrs ago | 7 | 7 |
full story
| 7 |
Today's Events
Thank you!
politicians may never change, and you won't ever be able to make everyone happy. another truth is that if you don't involve yourself in the process and simply grumble about things on newspaper message boards, you won't ever have any affect on anything.