City of Los Angeles Approves Financing Plan to Assist Iconic Grand Avenue Los Angeles Project
In July, the Los Angeles City Council approved a proposal to assist the Related Cos. finance the development of a $900m mixed use project designed by Frank Gehry across from Walt Disney Hall in downtown Los Angeles. Uses include a 4-star hotel, new restaurants and retail uses, and residential uses among the two-tower, 38-store project looking out from Bunker Hill. Construction is set to begin in 2015.
RSG was brought in by the City to evaluate the development economics and determine whether a subsidy was fiscally warranted. This involved looking at this unusual development, under an extremely rigorous and demanding schedule in light of the developer’s agreements with the City/County JPA that owns the site and is proposing to ground lease the land for the development.
This was RSG’s second such highly-prominent evaluation and negotiation effort for the City within the past several months, after previously completing the review and subvention negotiations with Westfield for the $350m Village at Westfield Topanga shopping and lifestyle center in the West Valley.
Want to learn more about how RSG looks at real estate development projects for our clients? We will be returning again this October to the CALED/CSU Fresno Introduction to Economic Development Certificate Program. Jim Simon will be speaking on real estate and development. You can find out more at the CALED website, or at this link here.