City Loans $400,000 to Firm for Hangar, Office at Airport : Development: Torrance council deal will help small business that is being displaced by expansion plans.

Moving to provide a new home for a small-aircraft maintenance firm displaced by expansion at Zamperini Field, the Torrance City Council this week approved a $400,000 loan for the company to build a spacious hangar and office building.

Great American Maintenance Co. and several other small airport businesses are being forced to move because the city wants to lease the property they occupy to make way for the expansion of nearby Robinson Helicopter Co.

The plan, intended to accommodate Robinson’s expansion while keeping Great American and the other businesses at the airport, is drawing criticism from some homeowners in the area.

“When I mentioned this proposal to a number of people in the neighborhood, the question arose as to whether or not the city should be in the business of lending money to private enterprise,” Frank Rizzardi, a representative of the Southwood Riviera Homeowners Assn., told council members. “I feel that if these people had a good credit rating, they could go out to commercial lending agencies for this particular loan without coming to the city.”

The council, however, voted unanimously to lend Great American the $400,000, which the company plans to use to build a 10,000-square-foot hangar, a 2,500-square-foot office building, aircraft tie-down areas and parking areas on 2 1/2 undeveloped airport acres. The money, to be drawn from the city’s airport fund, will be repaid over 30 years at 8% interest.

“We’re trying to encourage people to build on the airport,” said Philip Tilden, a city administrator who oversees airport operations. “We want to clean up the airport and build new facilities.”

Great American will be able to sublease office space in its new building to other businesses. Expansion of the Robinson plant, already under way, is expected to be completed by the end of the year.