Construction will begin in earnest this month on the Working Artists Ventura project, a $57 million housing and studio development designed for artists and creative businesses in downtown Ventura.

With a handful of other private developments delayed or at a standstill, some city leaders consider the artists project to be the most important local economic catalyst in a decade.

"This is the birth of a national landmark," said Ventura Mayor Christy Weir, who was among more than 150 invited guests sipping sparkling wine and munching desserts at a ground-breaking ceremony Thursday evening at the Museum of Ventura County.

The four-story project will offer housing options seldom created, in a combination some would consider unthinkable: 54 affordable housing units for artists and their families, 15 "supportive" apartments for people facing severe poverty and trying to end their homelessness, and 13 ocean-facing, market-rate condominiums likely to fetch upwards of $850,000.

A gallery-theater, park and arts-related commercial space also will be tucked into the eco-friendly structure. Roof-top solar panels will harness enough energy to add electricity to the regional grid.

The development will be built at a 3-acre site at Thompson Boulevard and South Ventura Avenue, visible from Highway 101.

'Worth every penny'

The city has sunk several million redevelopment dollars into the proposal, including a $2 million construction loan approved this week by the City Council.

The project is worth every penny, said Sid White, the city's economic development manager. "This will show projects can get done in downtown," he said. "Now you will see confidence build (in other developers)."

The construction comes at a time when a handful of other downtown projects are stalled, despite having full approval.

A few blocks away, the 172-unit Renaissance Walk proposal — one of the largest housing projects in downtown history — is at a standstill. The developer, the Olson Co., is waiting until the housing market improves, company officials said.

Merchants and restaurants along Main Street are making money, but the corridor remains dotted with "For Lease" signs and boarded-up storefronts. Unresolved parking issues prompted popular grocery chain Trader Joe's to back out of an apparent deal to take over a vacant building at Palm and Santa Clara streets, preventing a daytime draw downtown officials say the area sorely needs.

Banks are lending fewer dollars and have tightened lending standards amid the subprime mortgage crisis.

The $57 million price tag for the artists project is being covered by an array of funding, including millions in government tax credits and loans. "They call it lasagna financing,' because of all the layers," said Mike Merewether, a supporter and local developer.

'Our needs are eccentric'

Construction is expected to take from 18 months to two years, officials said.

Artists already are lining up to get in, said Chris Velasco, president of the nonprofit organization People Linking Arts, Culture & Environment Inc., the project's applicant. Rents will adjust on a sliding scale, likely from $390 to $1,000 a month.

Ventura County's housing costs are "intimidating," said artist Alicia Morris Soto, 34, who moved back here after studying in Greece.

Soto said she pays $1,100 in rent for a small place in Ojai and it would cost her an additional $400 to $500 a month for studio space. Fortunately, she has a fellowship to work at the Bell Arts Factory in Ventura.

"Artists are eccentric; our needs are eccentric," she said.

The project also will provide housing and social services for low-income residents seeking an end to homelessness, said Rick Pearson, director of Project Understanding, a Ventura-based nonprofit group that will coordinate the services.

The applicant also is working with Casa Pacifica of Camarillo to provide space and support for 18-year-olds moving out of foster care and Casa Pacifica.

Downtown officials are eager for the artist hub to open.

Besides a theater-gallery, there will be street-level commercial space for coffee houses, cafes and jazz clubs to draw foot traffic to the neighborhood.

Coupled with a planned expansion of the museum, the artists project will strengthen the area as a cultural and tourist destination, adding "heads in our beds and bellies at the bar," said Rob Edwards, executive director of the Downtown Ventura Organization. With the slumping economy, it could be one of only a few projects actually built in the next two years, he said.

Swept away by vision

Lynn Jacobs, a former Ventura businesswoman who is now director of the state Department of Housing and Community Development, hopped a plane from Sacramento to speak at Thursday's ceremony.

"We have to build our way out of this economic slump," said Jacobs, praising the project for its rare combination of housing in a environmentally friendly structure.

The project's diversity lured the John Stewart Co., one of the state's largest housing management firms, to put its weight and reputation behind the proposal, said company President Jack Gardner. "The vision swept me away," he said.

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