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.

Weekend Buzz

Think fast food makes you fat? Think again (Chain Leader) - October 6, 2009

New York travel writer does LA...without a car (Wall Street Journal) - September 26, 2009

California's Indian casinos get 3,000 more slot machines (LA Times) - October 6, 2009

Federal judge upholds LA billboard ban (The Argonaut) - October 1, 2009

Italian rail car manufacturer commits to build plant downtown (89.3 KPCC) - October 6, 2009

Roski down $1b, slides to 236 on 400 wealthiest list (Forbes) - September 30, 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.

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?

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.

But the lowered sales prices are well worth the $31 million cash infusion, according to Astani, because he does not have to worry about further construction lending. The cash will allow him to proceed swiftly on the second, 30-story luxury condo tower. Astani expressed concern over whether his lender, Corus Bank of Chicago, would be able to follow through with the final 5 to 10% of the $200 million construction loan. Corus has met with uncertainty thanks to sour investments following the real estate boom. Sonny Astani, head of the Beverly Hills development office, has already invested $55 million of his own money in the project.

The phase II condo tower is also almost complete and may begin sales as early as next month. Once complete, the complex will consist of twin 30-story condo towers, a 7-story loft building, and an acre of green space boasting firepits, a saltwater pool, cabanas, and...a Tai Chi park?

Roski Pushes to Bypass CEQA in Industry Stadium

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.

University Gateway Nears Completion, Begins Leasing

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.

American Apparel Commits to 10 More Years Downtown

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.

American Apparel, whose previous lease ended in December of last year, had been scoping out possible replacement locations, including a former Boeing plant in Long Beach. According to LA Downtown News, the company's CEO was satisfied by renewed negotiations on behalf of Meruelo Maddux. Whether there were concessions made to terms or prices on the new lease remains unclear, and the extension has yet to be approved in bankruptcy court. The company, which was founded in 1989 and is now publicly traded, has been housed in its current location since 2000.

The site, located at 747 Warehouse St., is not only home to the company's factory, warehouse, and corporate headquarters, but also a retail store boasting the company's largest collection at reduced prices. The vertically-integrated company, which has taken a progressive, vocal stance on issues such as immigration reform and gay marriage, famously uses its advertisements to promote its message, including the unmistakable billboards that grace the large headquarters. As its own advertiser and marketer, the manufacturer has been enormously successful at creating and disseminating its brand, which includes the tagline Made in Downtown LA. "Made in the Industrial LBC" doesn't quite have the same ring.

Weekend Buzz

Diane Keaton Keeps up Fight for Century City Hyatt (LA Times) - July 21, 2009


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

Orsisi Phase III turns Chinatown into Little Tuscany

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.