LOS ANGELES, July 17, 2000 (PRIMEZONE) - Los Angeles Mayor Richard J. Riordan announced today that Genesis LA, a unique public-private partnership created to revitalize neglected and underutilized industrial and retail sites while creating jobs, has received funding for both its private sector for-profit fund and non-profit organization.
-- The Genesis LA Real Estate Investment Fund, a for-profit financing
vehicle which will make debt and equity investments in low- and
moderate-income neighborhoods, announced today that it has
achieved its first funding goal of $71 million, and expects a
total closing in excess of $100 million within 60 days.
-- Mayor Riordan also announced today that the McDonald's Corporation
has committed up to $1 million to the non-profit Genesis LA
Economic Growth Corporation. The McDonald's contribution is the
first corporate donation from a retail company to the non-profit
organization of the Genesis LA initiative.
-- Six new sites have been added to the Genesis LA initiative as a
result of the early attainment of Mayor Riordan's Genesis LA job
and investment goals.
"These are milestone events for the City of Los Angeles and our goal of revitalizing blighted neighborhoods and making a difference in the lives of thousands of Angelenos," said Mayor Riordan. "Our inner city is the next frontier for economic development, and with Genesis LA, we are creating hope and opportunity where little existed before. Genesis LA is about the bottom line - sound, strategic investment that can build a stronger economy now and for future generations."
Using private sector capital, the Real Estate Fund will operate independently, in accordance with market disciplines to produce a market return. Shamrock Capital Advisors Inc., a unit of Shamrock Holdings, will be the sole manager of the Real Estate Fund. Shamrock Holdings is a private merchant-banking firm, and is also a committed investor, contributing $5 million to the Real Estate Fund.
"Genesis LA is privileged to have the experience and expertise of Shamrock, a company with strong ties to Los Angeles. Their leadership and commitment made the Real Estate Fund a reality," said Mayor Riordan.
"The Real Estate Fund has the capacity to make a measurable difference in the economic revitalization of significant areas of the city while generating a return on investment," said Stanley P. Gold, President and Chief Executive of Shamrock. "We are pleased to have taken a leadership role in the development of this innovative public-private partnership."
Principal investors in the Real Estate Fund are: Bank of America; Wells Fargo, Washington Mutual, Union Bank, US Bank, Shamrock Holdings, CalFed, Nehemiah, Far East National Bank, and City National Bank.
The non-profit Genesis LA Economic Growth Corporation, which uses corporate contributions to revitalize Los Angeles neighborhoods, welcomed McDonalds as its first $1 million retail corporate sponsor. The non-profit organization has received sponsorship commitments from Washington Mutual, Bank of America, and the Los Angeles Department of Water and Power.
"This donation officially launches the Genesis LA non-profit organization, which will be instrumental in securing and providing development resources for future inner-city projects," said Mayor Riordan. "I applaud McDonald's commitment to Los Angeles."
"We hope our contribution will be the catalyst for other companies to ensure the success of the non-profit organization," said Jeff Schwartz, McDonalds Corporation, Regional Vice President. "McDonald's understands that these areas have vast economic potential."
"The Genesis LA non-profit organization is proud to be a leader and a resource for smart growth and development in the City of Los Angeles," said Deborah La Franchi, President, Genesis LA Economic Growth Corporation.
Mayor Riordan unveiled Genesis LA in March 1999. At that time, he pledged that this groundbreaking economic development initiative would have signed deals expected to generate 5,000 quality jobs and $250 million in new private investment for the inner city. Initially, the project identified 15 underutilized or neglected industrial/retail sites with the goal of revitalizing Los Angeles' neighborhoods.
"Today I am proud to announce that we are adding six new sites," said Mayor Riordan. "Genesis LA is gaining momentum and we are providing a practical, public-private sector solution to city redevelopment that is a model for other cities throughout the United States."
Mayor Riordan also commended his Business Team, a business development team that represents the City's 15 council districts. "The LA Business team has been instrumental in the success of Genesis LA, and has provided millions of dollars in economic incentives for business development in the 21 Genesis LA sites."
Shamrock Capital Advisors, Inc ("SCA") is an affiliate of Shamrock Holdings, Inc., the investment vehicle of the Roy E. Disney family that was established in 1978. Shamrock Holdings initiates, sponsors and invests in private equity and real estate transactions locally, nationally and overseas. SCA provides management, consulting and other advisory services to Shamrock Holdings, and acts currently as manager to several investment portfolios that are valued in excess of $500 million.
Genesis L.A. Initiative Charter Sponsors may be contacted at the following phone numbers:
-- Adrian Rodriguez, Director of Community Relations,
Washington Mutual (213) 996-7718
-- Cary Walker, Vice President and Director of Corporate Relations,
Bank of America (213) 228-2578
-- George Buchler, President, Real Estate, Shamrock Holdings, Inc
(818) 973-4222
-- Jeanne Hardemion-Kemp, Community Affairs Manager,
McDonald's Corporation (818)594-7567
-- David Freeman, General Manager, Los Angeles Department of
Water and Power (213) 367-1320
Genesis LA Initiative Contact Information:
-- Deborah La Franchi, President, Genesis LA Economic Growth
Development, (213) 687-0528
-- Jessica Copen, Director of Communications, Office of
Mayor Richard Riordan, (213) 847-3480
CONTACT: Jennifer Mercer
Hill and Knowlton
(323) 966-5799