BURBANK — The City Council postponed voting Tuesday on the possibility of providing the Burbank Community YMCA a loan toward the completion of a new parking lot.
Councilwoman Marsha Ramos recused herself because her son is employed by the YMCA.
The decision came after nearly two hours of debate. Vice Mayor Gary Bric recommended that it be brought back mostly out of failing to agree on two loan proposals.
The first loan proposal, which the Y prefers, includes $1.4 million to fund the recent purchase of a property on 353 San Jose Ave., $87,000 in closing costs and $581,000 to cover the demolition and construction of the new lot. It also will refinance the YMCA’s current debt — a Community Bank mortgage of $297,440 and a First Private Bank line of credit of $491,044. The loan term is for 30 years.
The second loan proposal, in the amount of $2 million, covers all costs associated with building the new lot but does not refinance the nonprofit’s current debt.
The YMCA will use the lot on 353 San Jose Ave. and a contiguous property it purchased on 345 San Jose Ave. to build the new parking structure. The lot will replace the existing two small homes, a child-care center and a 10-unit apartment building on two properties, according to the staff report.
YMCA staff initially approached the council on July 1 to ask members to consider a proposal for a loan.
Financing from the city will allow the YMCA to finally address an ongoing parking shortfall, said Yvette Herrera, president of the YMCA’s Board of Directors.
“The YMCA is strong and financially solvent and continues to serve more and more Burbank residents each year,” Herrera said. “But as we begin to serve more people, there is a growing parking shortfall.”
Currently, the YMCA parking lot on the corner of Magnolia Boulevard and San Jose Avenue has 77 general-use and seven handicapped parking spaces. The lot is not enough to service the club, especially between the weekday peak hours in the early morning and afternoon when children are being dropped off or picked up at the child care center or participating in after-school programs, according to a city staff report.
“Some people think that the YMCA is just about health and fitness, but it is about community and bringing people together,” said Roger Cole, treasurer of the club’s youth and government delegation committee. “I am asking you tonight to provide the loan because the parking would help out a lot of members.”
However, resident Rose Prouser raised several concerns about the loan, mostly more pressing needs such as repairing mold damage on the fire services building and renovating the city’s pools.
The first loan proposal would be vital to the YMCA because the city can provide a lower interest rate, gives staff time to raise funds and reduces the impact on their cash flow, Herrera said.
“Land does not become available very often in Burbank, and when it does it is not cheap,” Hererra said. “The city can provide us a much better interest rate than a commercial bank, and it would be irresponsible for the board of directors to not seek it out.”
