Burbank Loan Program Irks Golden Mall Shopkeepers

The Burbank City Council agreed Tuesday night to provide financial assistance to Golden Mall merchants, many of whom say they have lost as much as half of their business since construction work began to reopen the mall to vehicle traffic.

But some of the merchants complained that the program was “too little, too late.”

The council voted 5 to 0 to appropriate $25,000 to fund the low-interest loan program. The money is intended to help shopkeepers restock their shelves for the Christmas holiday season or to make needed repairs or improvements to their businesses.

The Golden Mall, which stretches from Olive Avenue to Magnolia Boulevard, is in the heart of a downtown area targeted for redevelopment by the city. The mall has been closed to traffic since 1967. The $2.1-million street reopening project, which began in May, is scheduled to be completed by Oct. 20.

‘Revitalized Downtown’

“I think this is a good program,” said Councilman Thomas E. Flavin before the vote. “It will provide businesses with an opportunity to upgrade and become part of a revitalized downtown.”

But several of the 50 merchants along the mall on San Fernando Road said that the loan requirements are too stringent and that they will not participate in the program.

“I’ve talked to all the people that were originally for a loan program, and not a single one is going to take advantage of this particular package,” said Vernon Michel, owner of Michel’s Records and Tapes. “It wouldn’t make good business sense.”

Michel and other merchants said the main problem with the program is that it requires that they apply for a minimum loan of $5,000 or a maximum of $10,000, to be paid back within 12 months.

“With a monthly payment of $700 or more, it would be more of a burden than a help,” Michel said.

Assistance Plan

Alan Goodstein, vice president of Morey’s Shoes, agreed that the assistance plan was “too little too late. This was the least they could come up with. They don’t care about the mall merchants. They just want the big developers to come in here, and that’s it.”

City Treasurer Jim Rogers said merchants who want to take advantage of the program would be required to apply for a loan from one of eight participating banks in the city.

“If the bank approves the loan, we would then buy down the interest rate to 8% and pay any loan fees,” Rogers said.

If a loan were not approved, the city would consider providing a guarantee of repayment upon review of the borrower’s application by the City Treasurer’s Finance Committee, Rogers said.