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L. A. Might Lose Funds for Toxic Site Cleanup

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The Los Angeles City Council was warned Friday that the city may lose $4.5 million in federal grant money that it had planned to lend to a development partnership to help finance the cleanup of toxic materials at a 45-acre site in Atwater.

If the federal grant is lost, the developer’s proposal to transform the former Franciscan Pottery Works site into a regional shopping center may be jeopardized, said Marilyn Lurie, an assistant director in the city’s Community Development Department.

The city has strongly supported the plans of the owner--the Franciscan Promenade partnership--to clean up and redevelop the troubled property. In prior actions, the city has loaned the developer $9.5 million and agreed to limit its rights to foreclose on the property.

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Lurie said the city and the developer are working to obtain additional loans for the project to prevent the U. S. Department of Housing and Urban Development from withdrawing its grant.

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