A controversial mixed-use project slated for the corner of Sunset Blvd and Gower St is asking for an exemption from the area's 45 ft height limit. The project's developers, AREA Property Partners, have plans for a 28-story residential tower and a 17-story office tower on the site of the old CBS studios. Having already received approval from the city planning commission, the project expects to get the greenlight from city council, including council president Eric Garcetti, who happens to represents the area in question.
But the permitting of this project has consequences beyond just an isolated zoning exemption - it will change the height limits for the entire surrounding neighborhood - a historically low-lying area on Hollywood's fringes. And this is what has sparked some very vocal opposition to the tower. Local residents are mainly concerned about large buildings casting shadows over their homes and yards, but many are worried about the potential Manhattanization of a once-laidback part of town. Robert Silverstein, a local land use lawyer often involved with historic preservation said the city was "willingly [permitting] the destruction of its own past." Zoning, he says, should concentrate development in certain areas while leaving others small-scale.
And what does the developer have to say to that? AREA associate Brian Earle says it is part of the "city's desire to have more density...instead of going out we are going up." While it may sound like a developer jumping on the trendy 'denser is better' bandwagon, he has a point. Sunset and Gower is in an underdeveloped stretch of land just outside the confine's of boomy central Hollywood. If a developer thinks he can make something better out of a stretch of low-density strip malls and dingbat apartments, all the power to him. Besides, it takes a lot more to pencil a project than it used to. Hollywood has arguably become the most dense, walkable neighborhood outside of Downtown. That some locals are still enamored by the drugged-up, run-down Hollywood of old remains a mystery.
Thursday, December 17, 2009
Council to vote on lifting Hollywood height limits
Wednesday, December 9, 2009
Grand Ave Scales Back Amid Recession
Frustrated by stalled progress on developer Related Co's part, Councilwoman Jan Perry of District 9 has called for a smaller project sooner. Unable to secure full financing for the Gehry-designed megaproject, New York City's Related Co. has pushed the entire $3b development to the back burner. The project, intended to be completed in phases, has shown almost no progress since its conception in 2000 and the large lot across from Disney Hall remains empty. The project was scheduled for groundbreaking in 2007.
As for the 2.5 million sf condo-hotel-retail aspect? Related is still waiting on a $700m construction loan that, considering the sickness of the condo market, will be a long time coming. Also of concern is the state of Istithmar, the royal Dubai investment fund that has put $100m into the project, and was recently found to be drowning in $26b of debt. But as Witte has tenuously assured, the Dubai money has been "pretty much spent." Meanwhile, the pressure is on to see if Related can make good on its promise to deliver at least a portion of the project before its entitlements expire in 2011.
Tuesday, October 20, 2009
LAX Bradley Terminal to get $1.13 billion upgrade
LA’s Board of Airport Commissioners approved $1.13 billion in construction contracts Monday for the revitalization of the Tom Bradley International Terminal at LAX. Construction contractor Walsh Austin Joint Venture will handle the Bradley West project, which will be the largest public works project in the city’s history. The terminal, which already suffers from overcrowding and chronic delays, hasn’t seen any major improvements since the 1984 Olympic games. Included in the 1 million sf project are added space for ticket counters, security checkpoints, passenger lounges, immigration facilities, and restaurants and retail stores, as well as a capacity expansion of existing gates to accomodate new wide-body aircraft, like Boeing’s 787 Dreamliner and Airbus’ A380, capable of carrying 800 passengers.
LAX--and the Bradley Terminal in particular--lags far behind its international peers in capacity
and modernization. The terminal is drab, inefficient, and cramped. Compounding these issues
are the temporary security measures implemented after 9/11, which have yet to be made into
permanent, functional features. But this ambitious project comes at a rather conspicuous time
- the airline industry is suffering its worst downturn in history. Other airports are putting expansion projects on hold, while airlines are cancelling orders for new aircraft. In 2011 passenger volume at LAX will sink to 51 million from its 2000 peak of 68 million. This year, LAX has dropped from the world’s 6th busiest airport to its 8th.
But officials defend that Bradley West is part of a long term vision, and will help equip LAX
for a predicted 2014 recovery in air travel. LAX, which has a good credit history and lower debt
than similar-sized airports, will finance the project with revenue bonds. But first it will have
to increase revenue from concessions and parking, ask Congress to raise the $4.50 passenger
facilities charge, and raise fees and rents for the airlines, which are too low at $11 per passenger.
Whether cautious passengers will go for a fee increase and whether hurting airlines can stomach
a fee increase is yet to be seen.
The project aims for a 2013 completion and will create around 4,000 construction jobs.
Tuesday, October 6, 2009
Weekend Buzz
12:04 PM |
Saturday, October 3, 2009
Harbor Commission OKs Massive San Pedro Rehab
The Los Angeles Harbor Commission unanimously approved the much-anticipated $1.2 billion San Pedro waterfront revitalization plan on Wednesday. The aim of the project is to improve the long-neglected port district with a 300,000 sf tourist destination of shops and entertainment. If begun in a timely manner, construction on the plan would last a full decade, and would feature an 8.7 mile promenade, new parks, mini harbors, a new cruise ship terminal, and a conference center.
The following day, the US House of Representatives approved a $90,000 budget for the Army Corps of Engineers to study the feasibility of dismantling a portion of the Long Beach breakwater to restore the natural current and improve the quality of beaches located within the wall. According to a private consulting firm, a shortening of the breakwater would indirectly create $7 million in annual sales tax revenues for the city. The Environmental Protection Agency also granted the city $26 million in stimulus funds to help reduce diesel emissions at the nation's largest port.
Long before the construction of local entertainment giants like Universal Studios and Disneyland, the San Pedro waterfront was a major regional tourist attraction. But little of that historic charm remains, as the area has become entirely dependent on international cargo shipping, seeing roughly 7.3 million containers pass through its gates every year. The Ports of Los Angeles and Long Beach handle the majority of the cargo trade between East Asia and the US. As a result of this enormous volume, the harbor district is also the most heavily polluted area in Southern California, choked with diesel fumes from trucks and water pollution from ships.
While they are not explicitly referenced, the Fisherman's Wharf and Pier 39 attractions in San Francisco seem to be models for the port. In the 1960s when San Francisco lost the majority of its port capacity to nearby Oakland, the city reconfigured its waterfront assets as tourist attractions. While the Harbor Commission and frustrated locals are eager for a revitalized port district, the Port of Los Angeles is still in its heyday. And next door Port of Long Beach can hardly afford to pick up any slack. But another major goal for the grand plan is to create a more desirable port of call for cruise ship operators, who have been fleeing in droves for San Diego. San Pedro's waterfront is a long way from emulating the pleasant waterfront conditions in San Francisco or San Diego, but pollution reduction should be a higher priority than enticement of tourists.
Saturday, September 19, 2009
Barriers Down, LAPD Poises for Opening
With riot-strength chain link finally removed, curious downtowners are now able to get an early glimpse at the much-heralded landscaping improvements at the new LAPD headquarters across from City Hall. The 10-story building itself, begun in 2006, has been complete for some time. The controversy meanwhile, has been around the green space, as the site chosen for the headquarters was at one time intended to sustain a public plaza, according to some proponents. The now accessible public space boasts native planting, plentiful seating, and a near 1-acre lawn along 2nd St, according to blogdowntown.
The building, though constructed relatively quickly, has left a gaping void in one of the most newly dynamic corners of Downtown for almost three years now. Art walkers and farmers market-goers were forced to circumnavigate the peculiar site. Obtrusive construction fencing has left many wondering what kind of project could possibly have the privilege of being hemmed in by City Hall, CalTrans District 7 HQ, and the historic LA Times building. Who else, but the LAPD?
While officers and employees won't be able to move into the $440 million building until late next month, the 500,000 sf headquarters will be able to accommodate 800 more employees than the current Parker Center's 1,500. The DMJM-designed building and grounds are expected to receive a LEED Gold designation; a restaurant, a memorial to fallen officers, and a rooftop garden will also be featured.
Is anyone else thinking how great this building will look in the opening sequence of a futuristic cop drama?
Thursday, September 10, 2009
Unfinished Concerto Sells Out in Hours
The developer of Concerto, the high-profile condo development at Figueroa and 9th Sts., was able to sell all 77 loft units in one busy day last Saturday, August 29. Phase I of the iconic, angled-glass tower is almost complete, with move-in scheduled for early next year. But the fire sale of the initial units will allow Astani Enterprises, Inc. to move ahead with phase II, regardless of the state of outside financing. At an average of $375 per sf, Astani says the buyers did get a deal on the building, which cost $500 per sf in construction costs.
Tuesday, September 8, 2009
Roski Pushes to Bypass CEQA in Industry Stadium
10:34 AM | City of Industry, Ed Roski, LA Coliseum, Los Angeles County, Majestic Realty, NFL, State of California
Just days before this year's legislative session comes to a close, billionaire developer Ed Roski is lobbying the state's legislature to bypass key environmental and planning requirements for the proposed 75,000 seat football stadium. In a meeting with the state Senate Leader and Assembly speaker last week, Roski argued that the plan would provide "thousands of high-wage jobs" in an area with disparagingly high unemployment. Roski's proposal would also block litigation against the controversial project, including the pending suit filed by neighboring Walnut.
'Not so fast,' say Los Angeles County supervisors. Supervisor Gloria Molina argues that she supports the idea of a new football stadium in LA County, but that it can't justify a waiver of the strict California Environmental Quality Act regulations. "Hospitals, police stations, freeways and all sorts of valuable projects manage to be built without the necessity of CEQA exemptions," she says, and urges her companions to take the same stance. Highest among County's concerns are complications stemming from increased traffic to the area - a concern they say, that isn't felt at the state level.
But legislators in Sacramento have remained receptive to Roski's plea. Unfortunately, this is just the sort of misalignment between state and local viewpoints that has polarized all parties in talks over whether - and how - to sell the Los Angeles Memorial Coliseum for desperately needed cash. Of course many initial supporters of the NFL's return to LA liked the idea of a professional team playing in the historic Coliseum. But Roski's Majestic Realty Co. is probably correct in assuming that a shiny new stadium with sufficient parking and new traffic lights will make a bid to the NFL much more attractive. Legislators are due for a decision tomorrow, Friday, September 11.
Sunday, August 30, 2009
University Gateway Nears Completion, Begins Leasing
9:41 PM | Felix, Figueroa St., Jefferson Blvd, student housing, University Gateway, Urban Partners, USC
University Gateway, the housing behemoth being built by Urban Partners, LLC in conjunction with USC, has begun leasing its units, about a year ahead of expected move-in. The 8-story complex will boast 421 apartment units accommodating 1,650 beds at a university in desperate need of local housing. The project, which sits on the corner of Jefferson Blvd and Figueroa St, replaced an open-air auto lot that was owned by Felix Chevrolet and Cadillac. The famed neon 'Felix the Cat' remains intact (thank God) across the street.
With construction completion scheduled for June of next year, the owners spared no time in starting to make lease options available fully one year before the 2010/2011 school year. The company has set up a leasing office in the University Village shopping center and claims it has seen lots of early interest. A large challenge will be to get the word out and convince students that they should choose the Gateway over other alternatives (especially considering the alleged cramped conditions and 7 ft ceilings). The university has come under enormous pressure to add beds both on- and off-campus to accommodate an increasingly residential student population. While USC will not manage the property, it will maintain pricing agreements with the owner and has exclusivity to ground level retail, which will include a university bookstore and gym.
With area housing largely derelict and in short supply, students who are not invited back to live in campus housing after their first year are forced to pay exorbitant prices for substandard conditions. The quandary peaked last year when USC was given ownership of the now-dissolved slumlord housing provider Conquest. In the legal battle, Conquest sued the Gateway project for failing to provide sufficient parking on- and off-site, but was counter-sued for monopolistic business practices.
Interestingly this summer, there appeared to be a housing surplus around campus, as mom-and-pop housing providers struggled desperately to fill units. This may be in part due to the university's recent completion of a large dormitory on campus, which has allowed USC to guarantee housing to all freshman and sophomore undergraduates. According to the Daily Trojan, some students have expressed trepidations about signing a lease without being able to see the finished project. Upperclassmen will remember all too well the housing purgatory of 2006, when residents who were promised a spot in the sold-out Tuscany were forced to hole up in a hotel downtown for weeks before moving in.
Sunday, August 23, 2009
American Apparel Commits to 10 More Years Downtown
12:46 PM | American Apparel, billboards, Downtown, Long Beach, Meruelo Maddux Properties, Warehouse District
American Apparel, the nation's largest clothing manufacturer, has committed to extend its current lease in its Warehouse District headquarters until 2019. Its occupation of an 800,000 sf, 8-story pink warehouse tower is the largest tenancy downtown, both by size and value. The landlord, Meruelo Maddux Properties, Downtown's largest lessor, filed for bankruptcy just four months ago. As their largest client, Meruelo Maddux would be in even greater trouble had the iconic clothing brand not decided to extend its lease.
Saturday, August 22, 2009
Weekend Buzz
5:56 PM |
Real Housewife Narrowly Escapes Eviction (TMZ) - August 21, 2009
NY Times "does" the Philippe Starck-designed SLS Bev Hills (NY Times) - July 26, 2009
Architect Envisions Cap Park for 10 Freeway (NBC) - June 19, 2009
At 72 Hours/year, Angelenos (Still) Stuck in Traffic the Longest (Infrastructurist) - July 8, 2009
LA Streetcar, Inc. Hopes to Garner Attention with New Website (StreetsBlog) - July 10, 2009
Sunday, July 19, 2009
Orsisi Phase III turns Chinatown into Little Tuscany
9:38 PM | 101 freeway, Chinatown, Downtown, Figueroa St., Geoffrey Palmer, Orsini, pedestrian, retail
The oft derided Italianate empire of Geoffrey Palmer is expanding, apparently unfazed by the real estate slowdown, with the near completion of Orsini Phase III at the corner of Figueroa St and Cesar Chavez Ave, north of the 101 freeway. With the apartment's three installments occupying all but one of the intersection's corners, the area maintains an eerie, plastic atmosphere, devoid of pedestrian activity. Palmer has made his name constructing gigantic, ostentatious apartment buildings around downtown with tired Mediterranean flourishes and names like Medici, Visconti, and Piero.
Developer was required by the city to provide 13,000 sf of retail on the ground floor - a less than fortunate concession given that the corner is hidden behind miles of gaudy fountains and stucco balconies. Adding insult to injury, popular local grease dive BBQ King was razed at the hands of mighty Orsini. But Palmer has made another, somewhat trickier promise - retail lease rates must drop if occupancy doesn't hit 30% by the time the apartments are three quarters filled. This means that rather than the fancy Quizno's and Coldstone Creamery Palmer was no doubt tempting, we may get smaller, more local (read: Chinese) eateries instead; (perhaps even a vengeful resurrection of BBQ King).
The new building will allegedly feature more pedestrian-friendly and sustainable design options, assuming they're not looking to the sky bridges and anemic lawns of phase II as a model. Rates in the third building are TBA, but they can be estimated at just over the $2.53/sf being asked of the older 2-bedrooms. To Palmer's credit, the apartments are some of the most visible and accessible rentals in the daunting downtown market, and aren't (entirely) overpriced. Whether the new downtown has benefited from such palatial ghettos of pastiche is up for debate, but one man has certainly made a healthy killing and filled a great demand to boot.
Tuesday, July 7, 2009
Navigating the LA Housing Market
Most houses sold in 2008: Lancaster (93536) 1,458
Highest median price in 2008: Beverly Hills (90210) $2,690,000
Highest price/sf in 2008: Santa Monica (90402) $984
Biggest gainer from 2007: Westwood (90024) +17.9%
Biggest loser from 2007: Watts (90002) -49.0%
Wow. It is certainly an interesting time to be owning (or building) in Lancaster. Despite nearly halving in value from the year before, houses were still getting scooped up there last year thanks to drop-dead prices, which were lower even than Compton or Watts. But those inner city neighborhoods were by far the biggest losers from the year over. Their central location gives them artificially high prices during boom years. Beverly Hills and Malibu topped out the price index as can be expected. And Santa Monica's dense zoning and oceanfront location gave it the highest price per square foot. Despite sluggish movement in Downtown, the 90021 zip still managed a double digit increase from 2007. And the combination of density and stability stemming from proximity to UCLA, is the only explanation for Westwood's freakish mini-boom.
Monday, July 6, 2009
East LA Braces for Gold Line Opening
And drivers take warning: cameras will be placed at every train crossing, ready to ticket those imprudent drivers who make illegal turns.
Friday, July 3, 2009
Santa Monica Demos Parking in Favor of Greener Alternative
The two structures, which are the smallest of the area's six city-owned structures, were built as part of the city's plan to attract downtown retailers by eliminating parking requirements. The arrangement has been extremely successful, especially at Third Street Promenade, where high-end retailers clamor to lease the pricey spots. It has also led to a dense, walkable downtown that isn't plagued by unsightly ground parking like so many other Southern California shopping districts. Long a practitioner of so-called smart parking, Santa Monica is also home to a new parking structure at its civic center, so innovative and handsome it has been featured in a spread of Architectural Record.
Also on the voting sheet Tuesday night was an option to increase the city's bandwidth to bolster WiFi hot spot coverage. With its small area and fat pockets, Santa Monica may well be the first Southern California municipality to offer citywide wireless coverage, so far a distinction claimed only by Google's Bay Area hometown of Mountain View.
Saturday, June 27, 2009
Is Downtown Development Dead?
12:14 PM | adaptive reuse, AEG, Downtown, Eli Broad, Frank Gehry, Grand Ave, Jane Jacobs, LA Live, mixed-use, Ralph's
The vacated construction site is an increasingly common sight in Downtown these days. Los Angeles Magazine recently published a dismal perspective on upcoming downtown growth - "lower your expectations," they say, "construction cranes will be a rare sight for at least several years." When the last touches on the $2.5 billion mega-project LA Live are complete at the beginning of next year, there will be little to get excited about in the area's development scene. The energy behind Downtown's initial renaissance was fueled mainly by two events: the adaptive reuse ordinance of 1999 which allowed underutilized office buildings to be converted to housing, and California's real estate boom which gave area median condo prices their dizzying peak of $790,000. But those prices have fallen a staggering 37% and 17,818 units are sitting unbuilt in development limbo.
The problem with the explosion in adaptive reuse is that there is a limited stock of historic buildings ready for conversion. Enter ground-up development, a trend made apparent by the countless new gleaming residential high-rises gracing the city's skyline, many of which are having trouble leasing up or even finishing construction. LA Live was supposed to be downtown's saving grace - it was a shiny mixed-use behemoth that entered the construction market at a shaky time, but was backed by reliable and committed investors. But those familiar with Jane Jacobs will remember that city redevelopment cannot be spurred by catastrophic events; in fact, these types of additions often cause rifts and boundaries in urban neighborhoods. While the entertainment complex has been hugely successful in attracting valuable credit tenants to an area they have long spurned, LA Live is remarkably inward-facing. The idea was that visitors arriving for concerts, conventions, games and the like would begin to leak through the streets of Downtown, spending money and "knitting" the region together as a whole. But obstacles like traffic and pedestrian-unfriendly streets have made this aspiration unlikely.
New area residents who have helped Downtown to double its population to 38,000 in ten years, might argue that their neighborhoods are already great, or are experiencing redevelopment independent of AEG, the entertainment developer behind LA Live. Great strides have been made in Downtown's comeback, but the reality is that countless units remain unlet. Retailers who were once flocking to open up downtown to fill the increased residential demand, are holding back, or are pulling out altogether. Rite-Aid's closure of its store at 7th and Los Angeles Streets caused massive speculation and debate among locals and in the blogosphere. Ralph's, whose new store at 9th and Flower Streets is one of the chain's highest-grossing, is often cited as one of Downtown's greatest accomplishments, and a sign that more large retailers are coming soon. Unfortunately, national retailers often wait as long as a decade to ensure a market is worth investing in. 'Who needs 'em?' say many residents, who value the impressive collection of small independent retailers who have opened up shop locally in recent years. But the truth is that the presence of the big guys (like the much-wanted Trader Joe's and Barnes and Noble) can contribute incalculably to the validation of a neighborhood.
Many players wonder what happened to the Grand Avenue project that was supposed to be the high-end, culture-rich master plan that anchored the north end of Downtown. Well it too is sitting in limbo for lack of construction loans. Apparently a Gehry-designed superstructure backed by Eli Broad isn't quite what it takes to get something built around here. After LA Live is complete and we start to get a sense of its successes and impacts, eyes will most likely start to turn back to Grand Ave as the next big catalyst for area growth. But that is assuming LA Live is successful enough to hold developers' attention on Downtown. And let's hope the construction climate will turn around at least partially by that time. Until then, we must rely on smaller projects more invested in the area's long term economy to help connect the dots in a confused and fluctuating downtown. Stay tuned.
Thursday, June 25, 2009
Rancho Palos Verdes Residents Fight Marymount College Expansion
Marymount College, the small Catholic liberal arts institution that has sat on the Palos Verdes bluffs since 1975 wants to expand. 'Not so fast,' say local residents. For years students have had to commute to the 26-acre campus from the dormitories in San Pedro. And the college has been fighting to accommodate them on-site for just as long. But locals stringently oppose the idea, claiming it will bring unwanted noise and traffic to the tony burg.
Monday, June 22, 2009
Weekend Buzz
9:18 PM |
Villaraigosa withdraws bid for governor (Pasadena Star-News) - June 22, 2009
Tuesday, June 9, 2009
Council Passes Slew of Westside Projects on Eve of Weiss' Departure
5:26 PM | Beverly Hills, Caruso Affiliated, Century City, City Council, Jack Weiss, La Brea Ave, Westfield
Just weeks before City Councilman Jack Weiss' departure on June 30, a number of high-profile projects have been presented to the council for review. Jack Weiss, who lost his recent bid for city attorney to Carmen Trutanich, presides over the 5th district - one of the wealthiest in LA. Among those projects already passed by the council are a 39-story tower at Westfield's Century City shopping mall and a controversial residential tower on La Brea Ave. Tomorrow will see whether the Museum of Tolerance will get its much-anticipated expansion. The flurry of requests comes in anticipation of Councilman-elect Paul Koretz' reputation for anti-development.
One project however, will not make it out so easy. Koretz has asked the council to delay their vote on a 14-story Burton Way condo proposal. The project, which asks for exemption from the existing 45-foot height limit, is staunchly opposed by the neighboring Four Seasons hotel in Beverly Hills. Jack Weiss on the other hand, has built his reputation as a development-friendly Councilman, and sits on the council's Planning and Land Use Management Committee. Having made numerous area developer friends, Weiss' run for city attorney relied on financial support from these relationships. Interest groups from Rick Caruso to Westfield were represented in his losing bid.
Two other projects were also recently approved on Burton Way - on the same premium stretch of land between the Beverly Center and the Beverly Hills city limits. Incidentally, the apartment project at 8500 Burton Way is an 88-unit Caruso development. The other developer attempted to woo the council with a supplementary affordable housing building nearby targeted toward workers at Cedars Sinai, but the city shot down that idea as a "bribed" liability. This town may never find a feasible solution for affordable housing. Oh well, Caruso claims his building will house a Trader Joe's.
Monday, June 8, 2009
Biden: California Rail a 'Priority' for Federal Funds
5:26 PM | Anaheim, Governor Schwarzenegger, high-speed rail, President Obama, recession, SF Bay Area, State of California, stimulus package, Vice President Biden
Vice President Joe Biden announced to reporters earlier this month that California is especially well-prepared to receive a chunk of the $8 billion of stimulus money that has been earmarked for high-speed rail. Earlier this year, President Obama identified 10 regions nationwide that could benefit from high-speed rail. But because California voters approved $9 billion in state bonds last November, Biden believes the state is well-equipped to receive at least 10% of those funds.
The first phase, which is to run from Anaheim to San Francisco, will cost upwards of $34 billion and construction will last at least 10 years. But the ultimate vision of the plan is a $45 billion, 800-mile network linking San Diego in the south to Sacramento up north. Not only does California high-speed rail have the backing of its voters, it has long-running support from Governor Schwarzenegger and the legislature, and is in advanced planning stages... which is much more than most states can say. Biden, who has been dubbed 'Amtrak Joe' for his vibrant support of rail, added that the administration wants to "get shovel-ready projects out the door as quickly as we can."
But because of the pressing need of improved transportation and construction activity, and the lengthy red tape federally-funded projects must wade through, two segments of the proposed line under considerably high demand might be contracted out by 2012 and open for riders by 2017. These segments are the $3 billion run from Anaheim to Los Angeles and the $4+ billion run from San Jose to San Francisco. This second segment is particularly controversial because it is proposed to run along an existing commuter rail right-of-way and through some very dense, primarily affluent areas. According to the Wall Street Journal, Florida is the other leading candidate for federal money.
Sunday, June 7, 2009
Rancho Palos Verdes Lends Helping Hand to Luxury Resort
8:05 PM | golf, Lowe Enterprises, Marineland, Palos Verdes Peninsula, Rancho Palos Verdes, resort, Trump
Rancho Palos Verdes City Council members unanimously approved an $8 million loan late last week to Lowe Enterprises, the developer behind the soon-to-open luxury resort Terranea. Lowe was forced to seek out funds from the city as a last resort, or risk a severely delayed opening. The city, which has said it sits on about $19 million in cash reserves, will not collect the 10% hotel tax from the company for at least 27 months. The decision was made despite disapproval from the city’s finance director.
The $480 million resort, which is located on land that formerly housed the Marineland of the Pacific, will feature 380 hotel rooms and bungalows, three restaurants, a 9-hole golf course, and 82 extended stay “casitas” spread over 102 acres of prime oceanfront property. Lowe claims it will provide the city with over $7 million annually in hotel taxes once it stabilizes in about three years. This is significant in a city that is overwhelmingly residential and gets little income from business taxes.
Counted in Lowe’s portfolio are similar resorts in Lake Tahoe, Vermont, and Indian Wells, and other local hotels including the Sheraton Universal City. The decision comes at a time when hotels are having an especially difficult time securing bank loans and California municipalities are being discouraged from divulging in extraneous expenditures. But Rancho Palos Verdes, a city of only 41,000, has an extraordinarily affluent tax base and very few significant costs. The stimulus package is one it can afford and one it hopes will provide a worthwhile return. And everyone is hoping for fair game against neighboring Trump National Los Angeles.
Friday, June 5, 2009
Court Rules in Favor of Long Beach Airport, Against PTA
The 4th District California Court of Appeals ruled last week that the EIR filed by Long Beach Airport is adequate, and the airport can proceed with its expansion. In 2006, the PTA (Parent-Teacher's Association) along with Long Beach Unified School District sued the airport, claiming that the draft environmental impact report did not take into consideration noise impacts on area schools that would result from an expansion. In 2008, an Orange County judge shot down those allegations but only the PTA filed for appeal.
But the ruling justice on the matter, William Rylaarsdam, stated in his ruling that the addition of a terminal will not increase the volume of air traffic in or out of the airport, and will thus not increase noise. A 1995 federal statute dictates that LBG be limited to 41 daily commercial flights and 25 daily commuter flights. It is likely that the PTA feared larger terminals might translate to larger aircraft down the road. Because of the relative triviality of the issue, the California Supreme Court is unlikely to even hear an appeal, and thus the PTA is not expected to apply.
Frustrations stemming from the prolonged delay created tensions between the city and JetBlue Airways, the airports largest carrier. The airline threatened to move its operations elsewhere if its demands weren't met - a move that would decimate business at the airport. Since the ruling, the airline has withdrawn those statements, committing to stay. The actual expansion, though less ambitious than previously proposed, will break ground in 2010 and will focus on improvements to common areas. Passengers can expect larger and more comfortable restrooms, waiting areas, security checkpoints, and concessions areas. A parking garage housing upwards of 1,900 cars is also planned. The project will cost around $40 million, and will be funded mainly by airline fees.
Monday, June 1, 2009
Weekend Buzz
12:54 AM |
Bicycling Magazine Looks at LA's DIY Bike Culture (streetsblog) - May 31, 2009
Venice's 'Vehicular Homeless' Out of Control (laist) - May 31, 2009
LA Real Estate Scams Run Rampant (NBC) - May 29, 2009
LA Live Announces Discounts for Downtown Residents (blogdowntown) - May 29, 2009
La Brea-Willoughby Project Approved, Moves Forward (LA Times) - May 27, 2009
WeHo Projects Scaled Back...a bit (Curbed LA) - May 24, 2009
Sunday, May 31, 2009
Battle Over Boundaries of 'Eastside' Wages On
1:10 PM | Boyle Heights, East LA, Eastside, Echo Park, gentrification, LA Times, Silver Lake, Westside
The long-fought battle over the definition of LA's Eastside gained new interest today, thanks to an LA Times article by Esmeralda Bermudez. Residents of neighborhoods like Boyle Heights, just east of Downtown, claim the Eastside has always been defined as the area of the city east of the LA River. The term 'Eastside,' originally used pejoratively by politicians before the 1960s, carries with it a history of racial discrimination and Chicano pride. It was a name thrust on area Latinos by wealthy white Westsiders, and it stuck.
But another group has begun to adopt the name for their own part of the city - an area on the other side of town. New residents in neighborhoods like Silver Lake and Echo Park have picked up the name as a cultural backlash against the pricey real estate and superiority complex of the Westside. These Eastside "pretenders" are young, middle to upper-middle class whites, often hailing from out-of-state, with little knowledge of the city's geography and cultural history. They are the arbiters who have contributed to the gentrification of places like Echo Park, a neighborhood that was for a long time poor and predominantly Mexican-American.
A year ago, a number of activists associated with the blog LAeastside.com, tagged posters all over areas considered to be the Eastside "sham," like one on the bus stop above. (If you look closely, you can identify Intelligentsia - the Silver Lake hipster Mecca - in the background.) Defenders of the east-of-the-river title claim that the usage of the label by outsiders is ignorant and "eliminates us." One victory this group claims is the renaming of the Eastside Art Crawl to the Silver Lake Art Crawl. But many west-of-the-river advocates argue they are not trying to supplant any one's cultural history - they are merely creating an identity for themselves that rejects the white picket fence idyll of West LA.
It is a sticky issue that is not new to a city where boundaries are both ever-present and blurry. It is, like many topics in LA, an issue that is both racial and political at its roots. As a state that was annexed by the US from Mexico, California has a deep history of supplanting and removal, especially of Mexicans. Latino Americans fought hard in the 1960s for equality at schools and in the workplace. Boyle Heights and unincorporated East LA boast a rich history of Mexican-American-ness that is both proud and dark. Silver Lake yuppies would be wise to invent an identification that both celebrates their values and doesn't devalue those of another. But heated political debates aside, look at the pure geography - can something really be considered "east" if it lies significantly west of the city's center?
Friday, May 29, 2009
Inglewood Development to Replace Hollywood Racetrack
11:18 AM | 405 freeway, Century Blvd, gambling, Hollywood Park, Inglewood, Los Angeles County, mixed-use, New Urbanism
Pending approval by the city council, Inglewood has plans for a $2 billion mixed-use development that will go into the existing 238-acre Hollywood Park. The park, located on the corner of Century Blvd and Prairie Ave just east of the 405, is home to the historic thoroughbred race course opened in 1938. The proposed development would signify an end to the famous horse races. The pavilion/casino will be continued however, and will be renovated for a new life as... a casino.
The proposition calls for 2,995 housing units, 620,000 sf of retail, 75,000 sf of office space, and a 300 room hotel. A minimum of 90% of the housing units will be offered for sale, in the form of single family homes, conjoined townhouses, condominiums, and the "town center" will feature residences stacked over retail. A measly 4 acres has been set aside as required by the city for public use - either as open space or as a library or other community building.
Developers proclaim the project will be a welcome and sightly change to a languishing park in an all but forgotten city. They claim the urban housing model will allow for close-knit communities and walkable trips to grocery stores and the office. But it is the same unrealistic, Utopian ideal that has been the war cry of egocentric New Urbanism for decades. Not only are residents going to be forced to leave the premises for certain necessities, they're going to drive off the premises because there is nothing useful in the immediate neighborhood. If Inglewood wants to be taken seriously as a growth center at the heart of LA County, it needs to take more realistic measures. The race track may be falling behind on attendance and bookings but at least it represents a historical sense of togetherness.
Wednesday, May 27, 2009
LA Tops Forbes' List of Overpriced Cities
11:22 PM | construction, cost of living, Forbes, recession, State of California, Tupac, unemployment
Thanks to inflated home prices, an astronomical cost of living, and embarrassingly high unemployment, Forbes magazine slapped the City of Angels with the number one spot in its 2009 list of "America's Most Overpriced Cities." The list was calculated using a combination of 4 measures: average salary for college-educated workers, unemployment rates, cost of living, and the Housing Opportunity Index, which measures a median income family's ability to purchase a home locally. Other California cities on the list were Riverside (#6), San Diego (#9), and San Francisco (#18). Chicago, Miami, New York, and Providence rounded out the top five.
At 10.3%, unemployment in Los Angeles is one of the highest of American cities. In the last two years, residential building permit rates have dropped 82%, and the unemployment rate of construction workers is now 21%, almost double what it was last year. And despite the median home price having plummeted almost 40% from $525,000 to $319,000, the cost of buying a home still ranks among the highest in the country. Only NYC, Long Island, and San Francisco score worse on the Housing Opportunity Index.
And in an attempt to soften the blow and gain hip hop credibility, Forbes even references late rapper and convicted sex offender Tupac Shakur. Frustrated with the high cost of living back in 1996, Tupac proclaimed he would almost rather "live life in the pen," according to the magazine. Were he still alive today, Tupac would likely have little trouble finding a nice pad with $15 million in annual royalties.
Tuesday, May 26, 2009
State Senate: 710 Extension Must be Buried
11:46 PM | 710 freeway, Alhambra, Caltrans, Long Beach, South Pasadena, State of California, tunneling
The state senate decided today that any extension of I-710 to Pasadena from its current terminus in Alhambra must be underground. State bill 545, authored by Gil Cedillo (D-Los Angeles), removes any possibility of a surface option in the controversial interstate extension. The Long Beach Freeway, which runs roughly from the Port of Long Beach in the south to the northern city limits of Los Angeles, was originally intended to connect to I-210, the crowded east-west Foothill Freeway in Pasadena. But the final segment, which was to run through the city of South Pasadena, was staunchly blocked by residents and civic leaders.
South Pasadena, a city of only 24,000, has been opposed to the extension for three decades now, concerned that a freeway might split the city in two, and tarnish its cherished small-town character. But in August of last year, the city council voted 4-1 in support of a bill that would seek private cash for an underground freeway, discreetly supporting the extension. They cited their change of heart to a change in the author's (Cedillo) language that would eliminate consideration of the above-ground option, and collect money from the sale of state-owned property along the intended route.
In the 1960s, the state Department of Transportation purchased hundreds of properties in the parts of South Pasadena where the intended freeway would run. Today, these mostly vacant properties are cumulatively valued at a mind boggling $300 million. Cash from that sale alone would be enough to get the project rolling, despite the prohibitive costs of burying a freeway underground. Although the state would be imprudent to invest those much-needed funds in a not-so-needed freeway.
Monday, May 25, 2009
Flagship South Pas Redevelopment Stalled
Shamrock Holdings, the chief financier for a major mixed-use redevelopment project in downtown South Pasadena, has pulled out, citing economic concerns. Developer Decoma, was relying on the $8.8 million in equity pledged by Shamrock for the $50 million plus project. The 310,000 sf project was to be the flagship property in a major revitalization of the central business district along Fair Oaks Ave. But the unavailability of short-term construction loans in the midst of a development-unfriendly economic climate forced the Burbank holdings company to pull out.
The development was to contain 60 condo units, including 12 affordable units, and underground parking for 380 cars. The Decoma plan was attractive to the community because it was aimed at smaller scale retail. Community members looked forward to public plazas, water features, and street furniture to help improve a neighborhood where blocky bank buildings and 'For Rent' signs have become the norm. It is unclear whether Decoma Developers, whose website includes an extensive description of the project, will stick through despite the financial setback.
The city and the chamber of commerce certainly hope they will. The project was approved by the city council in May 2008. Since then, civic leaders have been courting developers and financial sources, begging for investment in their "blighted" CBD. Scott Feldmann, president of the chamber of commerce, said Shamrock's withdrawal "feels awful," and will try to stay hopeful that they can attract new interest. But not everyone was disappointed with this latest turn of events. Some residents, especially those in the immediate vicinity, necessitated 80 public scoping meetings and even filed an unsuccessful lawsuit in the last few months. Their concerns? You guessed it - traffic and parking.
Friday, May 22, 2009
Candy Spelling's Century City Digs Almost Complete
The Century, the 42-story tower rising in the center of Century City, has finished construction...on the outside that is. As the last crane was lowered last week, the remainder of work on the residential skyscraper will be on the interior, which was designed by architects Marmol Radziner. Move-in is scheduled for the end of 2010 for the condo units, which start at $3.3 million. The epic project is only four years in the making, since developer Related Cos. purchased the St. Regis Hotel property in 2005 for $123 million.
Thursday, May 21, 2009
Italian Rail Manufacturer to Commence "Greening" of Downtown
7:51 PM | Antonio Villaraigosa, CRA, green technology, industry, LA River, Metro Gold Line, MTA, recession
AnsaldoBreda, the Italian lightrail manufacturer that has held a contract with MTA in the past, has been entrusted to build a "green" industrial plant near the LA River, in anticipation of extended contracts with Metro. The Community Redevelopment Agency is expediting its decision to allow the company to build on the exclusive site in exchange for a renewed $300 million contract with Metro. MTA criticized the Italian firm for its handling of the delivery of the 50 cars shown in the video above, but the firm has promised 650 full-time area jobs to accompany the plant and corporate headquarters. At 12% unemployment, the city is hardly in a position to turn them down.
Under the agreement, AnsaldoBreda will lease 16 of the 20 acres for 50 years, allowing the city to seek other tenants. Mayor Antonio Villaraigosa and the CRA hope a "clean plant" on the corner of 15th St and Santa Fe Ave will anchor a string of new green technology centers in the city's emptying industrial core. The city, which purchased the prized property from the state in 2008, is demanding a $15 million deposit from the company, with annual rents approaching $1 million. AnsaldoBreda, which has produced lightrail cars for cities across the US and Europe, is anxious to be granted the new 100 car contract, which will provide the MTA with its necessary arsenal for the new Expo and Gold lightrail lines.
These negotiations are a prime example of how complex local private-public partnerships can be. The mayor's office, the CRA, the MTA, and AnsaldoBreda all have distinct goals and interests for the outcome of the agreements. In theory, everyone can win - AnsaldoBreda saves money by manufacturing locally, the mayor gets bragging rights on job creation and green technology, the CRA gets development in a blighted neighborhood, and the MTA gets its cars. But the red tape and the pricetag bargains mean it's not so easy. The LA Times published a smart article that outlines the city's plans for a grand redevelopment of the industrial wasteland straddling the river downtown. Let's hope this works, because if it doesn't, Villaraigosa will be remembered as the mayor that promised everything and delivered absolutely nothing.
Weekend Buzz
7:33 PM |
Wednesday, May 20, 2009
LAX to Purchase Tiny (but Pricey) Adjacent Lot
LAX's operator, Los Angeles World Airports, is said to be in negotiations to purchase a 21-acre parking lot adjacent to the Southwest Airlines terminal on the east end of the airport, valued at over $100 million. The property, called Park One, is owned by AMB Properties, a San Francisco-based property manager. At over $25/car/day, the lot is said to generate several millions of dollars per annum. It is set to be the largest commercial sale in LA County this year.
For purchases over $150,000, the agency is required to gain permission from the board of commissioners and from the LA city council. While their intended use of the site has not been made public, the agency claims the lot will not factor into their multibillion-dollar plans for renovation and expansion. In a recession economy, parking lots prove a very stable investment, as retail and other tenants will tend to fall back on their payments.
Tuesday, May 19, 2009
Carson Megamall to Rise on Former Landfill
Developers LNR Property and Hopkins Real Estate Group have begun grading and soil preparation on a 168 acre mixed-use development along the 405 freeway in Carson. The project, dubbed the Boulevards at South Bay, will boast retail, dining, entertainment, hospitality, and residences and is set to open in 2011. Projected to be the largest shopping-related development in LA County, the developers seem to know what they've got on their hands... the website seems to be catering more to prospective tenants than to future shoppers.
Saturday, May 16, 2009
Moss' "Glass Tower" Revived by Expo Line
9:58 PM | Ballona Creek, Culver City, Eric Owen Moss, Expo light rail, Hayden Tract, Jefferson Blvd, La Cienega Blvd, South LA
Eric Owen Moss' eccentric tower, which was previously stalled by financial constraints, has enjoyed renewed interest thanks to the Expo lightrail line that will connect Downtown with Culver City in 2010. The first rendition, which was approved in 1999, was composed of two towers and claimed to be the "only high-rise proposal in South Central...the location for two urban riots in the last 50 years." We won't tell them La Cienega at Jefferson isn't anywhere near South Central and is actually adjacent to affluent, suburban Culver City.
The site is located on a large tract bordered by the lightrail line on the north and the Ballona Creek on the West. It is near the beginning of National Blvd, where Jefferson Blvd turns due south. The La Cienega lightrail station is located less than a block away, and is the second-to-last stop before the terminus at National and Washington near downtown Culver City. In the 1990s Moss made a name for himself in nearby Culver City with his designs for the massive redevelopment of Hayden Tract, a gaping expanse of industrial land that was repurposed for office and manufacturing space. The land, home to offices including Ogilvy & Mather, Kodak, and Smashbox Studios, has since quintupled in value. So maybe Moss does have the Midas touch for blighted real estate, but isn't this just another pricey vanity box, albeit in a not-so-desirable part of town?
Saturday, May 9, 2009
Santa Monica Place Reopening Further Delayed
7:36 PM | adaptive reuse, beach, Frank Gehry, Macerich Co., Santa Monica, Santa Monica Place, shopping, Third Street Promenade
Santa Monica Place, the unfortunate early-Gehry-designed covered shopping mall that anchors the southern end of the Third Street Promenade, has delayed its reopening even further into 2010. The Macerich Company is the developer on the remodel, and announced this week an "official" opening date of August 6, 2010 - significantly later than the earlier planned Spring 2010 and 2009 before that.
The company, which purchased the property in 1999, originally planned to raze the existing mall and replace it with a multi-use complex of condos, offices, and retail. This 2004 plan was met with strong opposition from locals however, who felt the megalomaniacal development would be out of scale with the surrounding neighborhood and worsen already bad beach and promenade traffic. In 2007, they modified the proposal to a simple reconfiguration of the existing mall, which was ardently supported by the community.
While construction on the site looks horrendous, the project really is just a glamorized remodel. The interior walkways have been gutted and will be replaced by open-air walkways. Also new will be an indoor/outdoor rooftop dining terrace a la Westfield Century City but more upscale. Locals and visitors will be happy to see what was once a depressing, placeless mall turned into a welcoming promenade-like shopping center more in tune with Santa Monica weather and culture. And through adaptive reuse to boot. Expect to pay for it though - anchor tenants Macy's and Robinson's May have been replaced with Bloomingdale's and Nordstrom.
Friday, May 8, 2009
Orange Line Extension to Break Ground Next Month
10:53 AM | busline, Chatsworth, Curitiba, Metro Orange Line, Pacific Electric redcar, Valley, Warner Center
The Metro Orange Line busway that connects the North Hollywood Red Line station in the East to the Warner Center in the West, will soon extend northward from the Canoga station and will terminate at the Chatsworth Amtrak station - the site of last year's tragic derailing. The 4-mile dedicated busline will add 3 stations to the line, at Sherman Way, Roscoe Blvd, and Nordhoff St, before the terminus. The short extension endured a long acceptance process, beginning with a study in 2003 and finalizing in January of this year with the completed EIR. The main goal of the project is to improve north-south traffic conditions in the sprawling Valley. Completion is scheduled for 2013.
The original 14-station Orange Line opened in 2005 to both local and worldwide acclaim, as one of the first North American examples of a successful dedicated "busline." The busway, which was chosen as the locally preferred alternative in the scoping process, utilizes long articulated buses on a reserved transitway. This system, which was largely developed in the 1970s in transit-conscious Curitiba, Brazil, is low-cost and high-efficiency. Like a light-rail, the buses run on a dedicated path, eliminating both the danger of collision and the impediment of traffic lights. The line seems to be the perfect fit for the Valley, a region that is still relatively low-density, but suffers from strangulating congestion.
The extension however, has been met with much local condemnation, not for construction inconveniences or noise, but for the displacement of area businesses. LACMTA owns the path that will be tapped for the line, and has been leasing out the properties along this right-of-way for 50 years. The county transit agency has retained all the rights-of-way of LA's original Pacific Electric redcar system since its closure in 1961. Long leased out to private businesses at cut-rate prices, these transit corridors have proved extremely convenient in Metro's avid rebuilding of transit lines beginning in the 1990s. But despite complaints from local businesses about government intervention in an already sagging regional economy, local officials will continue to laud the project as a universally beneficial and a much-needed improvement to area mobility. You can make fun of the Valley all you want, but in a city infamous for car dependence, the Orange Line is hurtling into the 21st century.