Is Downtown Development Dead?

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.

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.

In the mean time, Marymount has received the green light on plans for a smaller, somewhat unrelated project - a $40 million gym, library and parking addition. But the band of angry locals, who call themselves the Concerned Citizens Coalition, have even threatened to bar that move with legal action. The city of Rancho Palos Verdes already imposes strict regulations on campus size, from the proportion of land that must be kept open space (two thirds), to the student body (800). Because of neighborhood opposition, the college contracted its initial plans from a 3-story 300 student complex to a 2-story 200 student dorm. But the neighbors wouldn't budge.

According to the city's traffic consultant, the construction of on-campus dorms would actually reduce the number of cars entering and leaving the hilltop campus because much fewer students would be commuting. But the real threat to community members is the idea of rowdy college kids partying til the wee hours on their quaint streets. It's tough to blame them but hey, who really wants to take a shuttle in and out of campus everytime you want to hit the cafeteria?

Weekend Buzz

Villaraigosa withdraws bid for governor (Pasadena Star-News) - June 22, 2009

Long Beach transit center opens after decades of stalls (Press-Telegram) - June 22, 2009

Local developer releases renderings of ambitious Westwood tower (CurbedLA) - June 10, 2009

Westside still the best side (if income is your measure) (LA Times) - June 8, 2009

Metro to toll single drivers in carpool lanes on 10, 110 (MTA.net) - June 8, 2009

New "Moss Green" housing project met with disgust in Venice (The Argonaut) - June 8, 2009

Council Passes Slew of Westside Projects on Eve of Weiss' Departure

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.

Biden: California Rail a 'Priority' for Federal Funds

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.

Rancho Palos Verdes Lends Helping Hand to Luxury Resort

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.

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.

Weekend Buzz

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