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.

Mid-City Hole in the Ground…Still Just a Hole in the Ground

Ever driven by that gaping wide expanse of dirt and grass near the confluence of Venice, Pico, and San Vicente Blvds. and wondered – “Who owns this land and what is going to be here?!” Apparently Lowe’s home improvement retailer earmarked $18.5 million in 2006 for an outlet on the site, dubbed ‘Midtown Plaza.’ According to the company’s press website, the project was expected to be completed in winter 2008!

Adjacent to the site, on a triangular lot fronting against Pico Blvd. and San Vicente Blvd. is a small retail mini-mall with a crowded bus terminal and no visible parking. The tenants include Wells Fargo and Panda Express. The Flatiron shape of the intersection and the prominent placement of a billboard for Spa Luce (?), give the building a Times Square-wannabe feeling. Adding to this aspiration is the rendering on Mayor Villaraigosa’s website, which also touts an initial $114 million investment and development by CIM Group.

According to most sources, the project was supposed to be completed all together, with two big box retailers stacked on one another and smaller retail at the front, reminiscent of the West Hollywood Gateway at Santa Monica Blvd. and La Brea Ave. Maybe the project lost funding after the first phase or maybe the large tenants dropped out of the running. Don’t think Lowe’s is slowing down its expansion though – in 2009 alone it has announced 19 new store openings. (Don’t they know that consumers can’t improve homes they don’t own anymore?)

Either way, the only action this lot has been getting is a periodic spray-down by a water truck…airborne dust never looks good to prospective buyers.