CA City to Use Federal Recovery Funds to Convert Racing Horse Barns to Self Storage

City council members in Pomona, California, this week approved a proposal to convert six racing horse barns into a self storage facility. The facility will become part of a business center, converted from another six racing horse barns, that will include office, warehouse, and light industrial space. Funding for the project will come from federal recovery bonds issued as part of the American Recovery and Reinvestment Act.

The new business center, which will be located in Fairplex, will be called the Fairplex Business Center. City council members voted to issue up to $9.3 million in Recovery Zone Facility Bonds for construction of the facility. Of that $9.3 million, $1.7 will be used for the conversion of six racing horse barns into a self storage facility. Another $6.9 million will be used for the conversion of the other six racing horse barns into the Fairplex Business Center.

The Recovery Zone Facility Bonds were allocated by the federal government to the state of California as part of the federal American Recovery and Reinvestment Act. Then the state allocated these particular bonds to the city. The city may use them to provide financial support for projects that will create jobs and aid in the economic recovery. However, the city, unable to use the bonds, notified Cal Poly Pomona, the Pomona Unified School District, and Fairplex that the bonds were available. Fairplex was the only entity to express an interest in using the bonds.

Currently, Fairplex has about 1,500 horse stalls. According to Mike Seder of the Los Angeles County Fair Association, who was quoted in today’s Contra Costa Times, a large number of those stalls remain unused. Seder said that converting some stalls into a self storage facility would take a resource which is going unused and turn it into an income-producing business.

The barns are near the Finish Line Sports Grille, near Gate 12 along White Avenue in Fairplex. Fairplex officials were in favor of the plan, noting that it would not interfere with Fairplex’s ability to hold horse races, horse training, horse shows, or horse sales.

If Fairplex accepts the bonds, it will have to repay them later. Fairplex would also pay the City of Ponoma a one-time fee of between $20,000 and $40,000 for issuing the bonds. However, the project must still be approved by the local Planning Commission later this year. In addition, it must get the approval of the California Debt Limit Allocation Committee.

Sources used:

Rodriguez, Monica. “Pomona council gives approval to federal bonds for business center, self-storage facility at Fairplex.” The Contra Costa Times. Sept. 8, 2010.

“Self-storage conversion project gets initial approval in Pomona, Calif.” Inside Self-Storage. Sept. 10, 2010.