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CALIFORNIA COMMUNITY ECONOMIC DEVELOPMENT ASSOCIATION (CCEDA) serves as a clearinghouse for information and action that advances the field of community economic development through training and continuing education, technical assistance, and advocacy on public policy. All CCEDA’s activities serve our membership — organizations actively engaged in revitalizing California’s neighborhoods, including resident driven community development corporations, local governments, community action agencies and faith based institutions. CCEDA members produce results through a full range of community building strategies including real estate development-housing, retail and commercial-business assistance and lending, social services, and job training and creation.

Community Facility Case Study: Paul I Terisaki Budokan, A Project Developed And Operated By The Little Tokyo Service Center Cdc, Los Angeles, California

Community Facility Case Study:  Paul I Terisaki Budokan

The Paul I. Terasaki Budokan (Budokan), the culmination of a 30-year dream and development process, is one of the most ambitious projects undertaken by a community based nonprofit organization. It was developed by the Little Tokyo Service Center Community Development Corporation (LTSC CDC), a 501 C3 non-profit organization that has served residents of Little Tokyo for more than 40 years. Located two blocks from the Los Angeles Civic Center, this project is in the Little Tokyo community, one of only four remaining historic Japanese American communities in the country (along with San Francisco, San Jose, and the Sawtelle community in West Los Angeles). The $33.8 million, 51,000 square foot recreational facility (24,000 SF for gym and terrace, and 27,000 SF for parking structure) was fully funded with no long-term debt will enhance the economy and culture of the Little Tokyo community for generations to come.

The facility will attract use through sports and cultural events and programs by the over 180,000 Japanese Americans in Southern California and by all residents in Little Tokyo. The facility supports Little Tokyo tourism in what has become the cultural center for all Japanese Americans, enriching affiliate facilities such as the Japanese American National Museum, Japanese American Community Cultural Center (including the theater, garden and plaza), the 442nd memorial and museum, and the many religious facilities in Little Tokyo. Most importantly, the project enhances the economic viability of Little Tokyo. The facility is a stabilizing, economic generator for the over 450 small businesses fighting the economic pressures of gentrification, currently pricing out many legacy family-owned businesses operating in the community, many for over 100 years.

This case study is intended for community-based organizations involved in real estate development, including affordable housing, commercial retail and office, community facility, and industrial spaces. Community Facilities represent a niche of real estate development that includes childcare centers, senior service centers, and community and recreational facilities. Primary users typically operate programs and services to meet essential community needs, which do not generate significant cash flow and therefore do not allow projects to carry significant debt. Most are high-use facilities where revenue generated is allocated to cover sizeable operating expenses. For the Budokan, extensive market research and planning has enhanced the facility’s prospects for success.

The development process for the Budokan entailed a significant fundraising effort from public and private sector sources. The project is adjacent to the civic center in downtown Los Angeles, in the rapidly gentrifying community of Little Tokyo, where real estate costs have increased significantly in recent years. This $33.8 million-dollar, debt-free project therefore required significant public and private sector support, coupled with an extraordinarily strong development team and experienced development partners.

The public and private sector partnership is evident in the breakdown of the projects cost. Of the total project costs, 27.6% (or $9.6 million) came from public sector funding sources, 26.2% (or $9.08 million) from New Market Tax Credit investors, and 46.2% (or $16 million) from corporate foundation and individual donations.

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California Climate Resource Guide

CAAs and CED Organizations Guide

Navigate case studies geared toward CAAs and CED organizations with this new online resources guide https://www.ccedaclimateresourceguide.com and webinars https://cceda.com/presentations-2/2021-2/ demonstrating how to use it per region .