Cultural Center Loan Application Rejected

WESTMINSTER —  The proposed construction of a city cultural center, which was intensely debated by City Council members, may have to wait awhile after all.

The city proposal to use federal community development block grants to pay for the construction has been turned down by the Housing and Urban Development Department, officials said.

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City officials sought a $5.3-million HUD loan to build a cultural center, a park and renovate some 15th Street apartments across from City Hall.

HUD officials said that the cultural center does not qualify for block grant money because it will not generate enough jobs to benefit low- and moderate-income people.

Under federal guidelines, block grant money can only be used to aid low- and moderate-income residents, prevent and eliminate slums and blight, and meet urgent community needs.

The council Tuesday voted 3 to 2 to submit a revised $2.9-million loan, eliminating funding for the cultural center. Of the requested amount, $1.8 million will be used to pay for the 3.8-acre Warner School site from the school district, where the cultural center could later be built.

The rest of the money would be used to build the park and renovate the 15th Street apartments.

The city has set aside $3.3 million from a reserve fund for the project.

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But council members continued to argue whether to build the cultural center.

“Why finance this on the backs of low-income people?” argued Councilman Craig Schweisinger, who has joined Councilman Tony Lam in opposing the project.

“All the money is always allocated for “needy” groups,” rarely for the middle class who pay the taxes,” said Councilwoman Charmayne S. Bohman. “Everybody will benefit from this project.”

The loan is an advance of the block grant money the city expects to receive from HUD over the next five years. It will be paid back over 10 years from the block grant money the city receives every year.