Italian Rail Manufacturer to Commence "Greening" of Downtown

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.