[bobcat]

The part of that article that stood out for me is this:

The first element of LA Live slated for completion is the 7,100-seat Nokia Theater. Construction of the headquarters hotel would start no later than October 2006, with completion in four years, according to CRA documents.

FOUR YEARS??? I hope they mean four years from the September 15 groundbreaking and not four years after the hotel begins construction. I don't see how a hotel can take four years to build.

[JRinSoCal]

^I was thinking maybe four years from now. I hope so anyways.

[LAMetroGuy]

the part that stands out for me is the "according to CRA documents." part... these CRA documents might not be reflective of the contruction timeline that will actually be in place once things get moving. Sept 15 should iron all of this out for us.

[LosAngelesBeauty]

Then IMAGINE the LIGHT generated from the electric billboards all over the new entertainment district! And unlike Times Square, which is SURROUNDED by high-rises, we'll see the benefits of a more "transparent" LA Live because people from all over will be able to SEE "inside" looking from the outside (whether that be a driver in his car on the 10 or 110, or someone riding an escalator from the parking structure into the Beverly Center all the way in Beverly Hills!).

Metropolis will be designing their high-rises with "advertisements" in mind as well. Specifically, the drivers off the 110 freeway, if you know what I mean.

So far, it seems like LA Live, Staples Center, Metropolis, LNR, and MAYBE the South Group will have flashy signages that will act as magnets at night. There's nothing more attractive at night than Time Square, Las Vegas, Ginza, Hong Kong, or even our own Sunset Blvd to a certain degree.

I can't wait!

[ThreeHundred]

Imagine driving past Staples on the 10 freeway. Staples lit up with it's searchlights and blue..

I think light has a large part on how to draw people in.

Btw..check the LA diagram. It's been updated..in a way.

[citywatch]

FOUR YEARS??? I hope they mean four years from the September 15 groundbreaking and not four years after the hotel begins construction. I don't see how a hotel can take four years to build.

The current estimate is that the hotel won't be under actual construction until late 2006, which to me is bad enough. I was hoping the hotel, which is kind of the linchpin of the LA Live devlpt, would rise concurrently with anything & everything included in the first phase.

These timelines that test ppl's patience remind me of the construction schedule for the W Hotel proj at Hollywood & Vine, where pre devlpt publicity & material had led me to believe that proj would see start up a lot sooner that what apparently is the case. And, of course, there's been the Ralph's/condo proj on 9th St.

It's funny how I originally envisioned the phasing of everything, because I thought the Nokia Theater was the least likely to go forward ASAP, mainly because it overlaps what can take place in Staples or various theaters throughout LA, such as Kodak. But then I just read yesterday that hotels in DT had the lowest occupancy rates in town last month, so that forces me to realize that almost every part of LA Live isn't exactly like a crammed bank vault waiting to be opened.

[colemonkee]

I wouldn't be too worried about the timeline. Getting this project under construction is the first big hurdle, and completing it in the next year is not necessary to continue the growth of South Park. The first phase of LA Live should be completed 4-5 months after completion of Luma and the Ralph's project, both of which should provide enough retail for locals for the time being (including the sorely needed supermarket).

The only thing that suffers in the short term is the Convention Center, which can't use the hotel to book more events. But they should be able to book events further in the future when construction of the hotel actually starts.

On a side note, I would expect construction on this whole project to be somewhat slow. From what I understand, there is a large underground parking component, which can take a long time. But on the bright side of things, we have groundbreaking in 8 days!!

[bobcat]

It's funny how I originally envisioned the phasing of everything, because I thought the Nokia Theater was the least likely to go forward ASAP, mainly because it overlaps what can take place in Staples or various theaters throughout LA, such as Kodak. But then I just read yesterday that hotels in DT had the lowest occupancy rates in town last month, so that forces me to realize that almost every part of LA Live isn't exactly like a crammed bank vault waiting to be opened.

Hotel occupancies really don't have anything to do with the viability of the Nokia Theatre, because it's overwhelmingly locals who would patronize events there. Because of their size, the only local venue that directly competes with the Nokia Theatre is the Shrine Auditorium. Kodak Theatre is much smaller and Staples is much bigger.

[citywatch]

Hotel occupancies really don't have anything to do with the viability of the Nokia Theatre, because it's overwhelmingly locals who would patronize events there.
I was referring to the many parts of LA Live that aren't filling a tremendous need for more capacity, be it more hotel rms, more stores, more movie theaters, more convention or theater space. Right now everything is resting on the ability of the hood to absorb new housing.

If a new blgd like Nokia lures, for example, the MTV Music Awards away from Miami, where it took place this yr, that will be a good thing. It will be even better if LA Live somehow manages to lure some of the locals that otherwise will attend big events in Vegas or even NYC's Broadway during summer vacation or on Spring break. But short of that, & considering that the owners of the old movie palaces on LA's Broadway have long struggled to keep them occupied (with movies or entertainment & NOT as swap meets), the hoods of DT, so far, reflect more capacity than demand.

If the timeline had been pushed backward & faster a long time ago, in which LA Live would have been built 10 yrs ago, & new condos in south Pk would've been added 15 yrs ago, & the OBD would've been cleaned up over 20 yrs ago, & the Ralph's/condo proj wouldn've been completed 25 yrs ago, & so on & so forth, it's possible there'd be more demand than capacity in the hood today.

[DJM19]

I dont think LA has a problem getting something like the VMAs. Its been in LA before, Miami is just kinda a two-year thing they did.

[colemonkee]

If the timeline had been pushed backward & faster a long time ago, in which LA Live would have been built 10 yrs ago, & new condos in south Pk would've been added 15 yrs ago, & the OBD would've been cleaned up over 20 yrs ago, & the Ralph's/condo proj wouldn've been completed 25 yrs ago, & so on & so forth, it's possible there'd be more demand than capacity in the hood today.

In terms of housing right now, yes, there is more capacity than demand, but keep in mind there is more demand than supply for new condos right now, especially in South Park. That's the figure you should be looking at, not capacity. Theoretically, capacity is unlimited, since it can be expanded by redevelopment and rezoning.

[yeah215]

Council Is Urged to OK Hotel Deal
Two city officials back plan to provide public subsidies and loans to developers of the high-rise. Critics call the proposal misleading.
By Patrick McGreevy
Times Staff Writer

September 8, 2005

The Los Angeles City Council's top two advisors have recommended that it approve $266 million in public subsidies and loans for the developers of a 55-story hotel next to the city's Convention Center, a much higher amount than previously disclosed. The proposal from City Administrative Officer Bill Fujioka and Chief Legislative Analyst Gerry Miller sets the stage for the council to adopt a financial package that includes allowing the hotel to keep $246 million in hotel bed taxes that it is expected to generate in its first 25 years.

The two city officials, however, characterized the bed-tax rebate as a $62-million subsidy because that is the amount the developers can raise immediately for construction by borrowing against the 25-year flow of tax receipts. Although that is the "present value" of the subsidy, the city would actually forgo $246 million.

Jon Coupal, president of the Howard Jarvis Taxpayers Assn., criticized the city for trying to present the deal in a way that might be more palatable to the public.

"It's misleading," he said.

Councilman Bernard C. Parks, however, said he was not put off by the final deal, saying the bed tax being returned is new revenue the city would not get if a hotel were not built.

"It basically pays for itself," said Parks, who is chairman of the council's Budget and Finance Committee.

The city is also proposing $20 million in loans and building fee waivers.

Building a 1,100-room hotel would help the city attract more business to the Convention Center, which is not earning enough to cover $32 million in annual debt payments incurred for a $500-million expansion, Fujioka and Miller argued in a report released Wednesday.

The city's general fund is subsidizing the Convention Center debt payments by more than $10 million annually, officials said.

"The Los Angeles Convention Center has not been able to attract the large-scale conventions and events that its competitors have been able to attract because of the lack of a convention center headquarters hotel that provides ample hotel rooms within close proximity to the Convention Center," Fujioka and Miller wrote.

City officials said a development team that includes the L.A. Arena Land Co., a firm owned by Denver billionaire Phillip Anschutz, is obtaining $180 million in private loans for the project, but that the city financing is needed for the project to go forward.

Critics of the deal, some of whom have sued to block it, say it is unfair to other hotels that have to compete with one receiving public subsidies. Coupal, who is not part of the lawsuit, said there is also the risk that the subsidies will fail to make the hotel and the convention center profitable.

"The fact that private capital won't come in and build the hotel should be a red flag to city officials that this project may not be viable," he said.

In arguing for the City Council to approve the deal in the next few weeks, Fujioka and Miller also said it is an important element of the $1-billion "L.A. Live" development of restaurants, theaters, offices and shops being proposed by Anschutz near Staples Center.

To buttress their argument, the two city officials also released an analysis by PKF Consulting indicating that over the first 9 1/2 years of the hotel's operation, it would boost the city's economic output by $2.7 billion, as thousands of additional conventioneers and tourists come to Los Angeles.

[colemonkee]

I think it's a huge win for the city if the Convention Center can book enough business to get back into the black. That would save the city's general fund $10 million per year, which after 10 years would make up for $100 million of the subsidy. Not to mention the money the city would make from sales tax from the rest of the development. I'm feeling more and more confident that this will be passed by the council.

[citywatch]

In terms of housing right now, yes, there is more capacity than demand, but keep in mind there is more demand than supply for new condos right now, especially in South Park. That's the figure you should be looking at, not capacity. Theoretically, capacity is unlimited, since it can be expanded by redevelopment and rezoning.

I used the term "capacity" as interchangeable with supply, although I can see why ppl would define them as not necessarily one & the same thing. I was thinking of maximum capacity for 2005, then 2006, then 2007, etc, meaning how much total demand there will be over the next X number of yrs.

The max capacity of the hood in terms of devlpt only, without adjusting for the upper limit of demand, would be a big condo/apt bldg on almost every piece of land in South Pk, or dozens & dozens of new bldgs. Of course, I don't think even the biggest optimist believes there's enough demand to support that amt of devlpt.

As for the capacity for hotels in DT, the hood still is suffering from a hangover that dates back a long time. 71% for a prime summer month is pretty low, & it shows why there's still a dog eat dog attitude of ppl like Peter Zen, owner of the Bonaventure.


Downtown hotels posted double-digit occupancy gains in July compared to 2004. Yet the local hospitality industry still recorded the lowest overall occupancy rates of the month in Los Angeles County, according to a study released by hotel industry tracking firm PKF Consulting. Occupancy rates for Downtown hotels that charge more than $105 a night stood at 71.25% during July, compared to a countywide average of about 80%, according to the report. While the comparatively low level continues a long trend, the Downtown hotels' average room rate of $105 a night marked a 13% increase over July 2004. Countywide the climb was just 3.2%.


I'll say again that because it's taken so long to clean up & improve DT, many ppl have an ingrained habit of avoiding the hood. IOW, LA Live should've been built 15 yrs ago, the Elleven condo bldg should've been built 20 yrs ago, the clean up of the OBD should've taken place 25 yrs ago, the Ralphs/condo proj should've broken ground 10 yrs ago, the highrises built in the 1980s should've been completed in the 1960s, etc, etc. That's why everyone should want to see the fastest timelines possible, & why ppl who visit DT nowadays, as I did not long ago with some out of town guests, shouldn't have to see all the raunchiness of graffiti, vagrants & hole in the wall bldgs & wasteland parking lots.

[LongBeachUrbanist]

^The next line (after the one you highlighted) showed that Downtown improved more than the rest of the county did.

While the comparatively low level continues a long trend, the Downtown hotels' average room rate of $105 a night marked a 13% increase over July 2004. Countywide the climb was just 3.2%.

[colemonkee]

Enough of this hotel occupancy talk. ;) Groundbreaking is in 4 days.

[DJM19]

someone take pictures

[LosAngelesBeauty]

I thought I'd inform you guys when the press conference is scheduled to begin :D

For those interested, you might wanna get there around 1PM. ;)

[colemonkee]

Shit. I won't be able to make it. Be sure to grab some pics!

[citywatch]

Shit. I won't be able to make it. Be sure to grab some pics!

I was hoping that since you're the first & only SSPer who lives in DT, that more photos of the hood would start showing up here, before & after various groundbreaking events. LAB prob will be the next SSPer who's living in DT, so I really hope by that time this board will be the site of far more photo essays of DT, in visual stereo, no less. :D

[colemonkee]

^There will be a lot more pictures, but I'm going through my typical moving troubles (spending most of my time on weekends at furniture and hardware stores) getting my place up and running, and work has picked up a lot (I spent half of Sunday at the office).

As soon as things slow down for me (hopefully in two weeks) I'll post some photo updates.

[LAMetroGuy]

$246 million deferral key to L.A. hotel plan

By Beth Barrett

LOS ANGELES DAILY NEWS


LOS ANGELES - Los Angeles would give up as much as $246 million in projected room-tax revenues from a proposed downtown hotel next to the ailing convention center as part of a controversial deal with the project's developers.

The full extent of the projected revenue the city would give up over 25 years to get the 56-story Hilton built has not previously been publicly discussed.

The forfeited revenue -- in addition to a $4 million fee-waiver contingent on the hotel's completion and a $16 million below-market-rate loan package -- is expected to become a point of contention as a key city panel takes up the issue and the City Council nears a decision on the deal.

"I think it will be a big debate for a lot of factors," said Councilwoman Jan Perry, who represents the area and sits on the Ad Hoc Committee on the Convention Center Headquarters Hotel, which will next consider the deal.

Under the city's calculations, the proposed 25-year deferral of Los Angeles' "transient occupancy tax" for the hotel assumes 70 percent of the hotel's 1,100 rooms would be occupied each day after four years at an average room rate of $160, with prices increasing with inflation.

The cash flow from the waived room tax is estimated initially at about $6.3 million annually, rising to $14 million by 2032.

If the assumptions bear out, that would translate into $246 million in savings for the hotel's developers.

Interim Chief Legislative Analyst Gerry Miller said that while the $246 million represents a "big number," the revenue wouldn't exist at all without the hotel.

Developers Wolff Urban Partners and Apollo Real Estate say they need the public tax breaks to be able to get financing, especially with the soaring prices of construction material pushing preliminary estimates on the hotel to more than $500 million.

They are using the anticipated revenue stream from the city room-tax waiver as leverage to obtain $62 million in financing -- in addition to the other city fee waivers and the $16 million Community Redevelopment Agency loan, which commissioners have recommended be approved.

The developers, as well as AEG, the company owned by Denver billionaire Philip Anschutz that's selling the land for the hotel, say they are taking the risk in the project, while the city's struggling convention center stands to be revitalized.

AEG is planning a $1 billion sports and entertainment complex called "LA Live," with company officials saying the hotel is central to those plans.

"The bottom line is the money wouldn't be received without the hotel, so we're not giving up money we would otherwise receive," Miller said. "They're taking the risk."

Miller said that if the hotel fails to perform according to expectations, the developers -- not the city -- would be responsible for the $62 million backed by the room-tax revenue stream, as well as the remainder of their financial obligations.

"That becomes their problem," he said "We're not on the hook to bail them out."

Councilman Bernard Parks, who heads the Finance Committee and said he backs the deal, notes that while the tax breaks represent a "big number" over the lifetime of the proposal, they amount to about a third of the more than $30 million the city spends annually on debt service for the convention center, which also racks up about $1 million in additional net losses.

"The funds come out of the project," Parks said. "Otherwise, you have a vacant lot."

Perry, who supports the hotel project, said that in the long run the project will transform empty parking lots into tax-revenue-generating properties for the region, as well as help revitalize downtown.

In the meantime, she acknowledged there are many interests competing for city resources.

"There are the DWP employee raises, the structural deficit, the public demanding more police, making sure we maintain hours for parks and libraries," she said.

And Jon Coupal, president of the Howard Jarvis Taxpayers Association, said he predicts the proposed hotel would simply draw visitors away from other existing downtown hotels -- siphoning tax revenues from those locations and further biting into the city's budget.

"This hotel will draw business from others ... (business that) would go to other hotels that don't have special arrangements" and would pour that room-tax revenue into the general fund, he said.

"If this is such a great deal, why doesn't private capital come in and do it itself?" Coupal asked. "It's far better for a municipality, county or state to have an overall tax and regulatory climate that attracts and retains business, as opposed to these special incentives."

[LosAngelesSportsFan]

its not as negative as i expect from the Daily News...


Entertainment complex pictured as downtown hub
By Beth Barrett, Staff Writer

In a bold bid to brand Los Angeles as a world-class live entertainment center, the owner of Staples Center detailed plans Tuesday for a $1 billion, 5.5 million-square-foot sports-entertainment-residential complex that would be one of the largest developments in downtown history.

The LA Live development by the Anschutz Entertainment Group - scheduled to make the formal announcement Thursday at the project's groundbreaking with Mayor Antonio Villaraigosa and other city leaders in attendance - would include retail, live theater, premiere movies, restaurants and housing.

It is envisioned as becoming "Times Square West" and the permanent home for a variety of award shows with a Grammy museum that could include an annual "induction" ceremony, in addition to facilities for a major sports/entertainment broadcasting company yet to be disclosed.

"We think L.A. should be the event capital of the world," Timothy Leiweke, president of the company owned by Denver billionaire Philip Anschutz, said in an interview with Daily News editors and reporters.

"Award shows, tourism and content are going to be the most important industries we have. We're not going to be the steel city, we're not going to be the chip city, we're unfortunately not going to be the new technology city, because we missed that boat."

Leiweke said LA Live - a complex with the square footage of downtown Long Beach - is envisioned to dovetail with a proposed 1,100-room, 56-story Hilton hotel adjacent to the ailing Convention Center.

The hotel has become controversial since developers Apollo Real Estate and Wolff Urban Development entered into a proposed deal with the city that includes a $16 million loan from the Community Redevelopment Agency, $4 million in fee waivers and the forfeiting of nearly a quarter-billion dollars in room taxes the hotel is projected to generate over 25 years.

Leiweke said while LA Live doesn't hinge on the hotel's development - most of the complex would be completed within the next two to three years - it would be a "crime" if the city passes on the private capital committed to the hotel.

The Convention Center costs the city more than $30 million a year in debt service and net operating losses, and trails even Des Moines, Iowa, in convention business.

"(The center) will never come back. This is our last, great shot at getting a private entity to put up what is going to be $400 million-plus in cash to build a hotel," he said, adding that the center ultimately should be privatized to reduce the burden on taxpayers.

Plans for the hotel and the massive complex - which AEG hopes to use as a model for its international ventures, including London's Millennium Dome - have renewed debate over downtown development, as well as Villaraigosa's promise to bring similar economic energy to the San Fernando Valley and other underserved areas of the city.

Robert "Bud" Ovrom, deputy mayor of housing and economic development, said while LA Live is being focused on, 50 to 75 projects throughout the city, including the Valley, are getting just as much attention.

"We're pushing major projects throughout all the areas of Los Angeles," Ovrom said. "Yes, LA Live is one of them, and they're very big, but we're equally pushing all projects in South L.A., East L.A., the Valley, Hollywood and the Westside."

He said projects such as Valley Plaza, NoHo Commons and the Panorama Mall in the Valley, a biomedical campus at USC, and several major retail outlets in East and South Los Angeles are among the projects being pursued aggressively.

"We're putting equal if not greater effort in other areas ... it takes more to get it done. LA Live is basically doing their own thing."

Leiweke said city leaders historically have "failed us miserably" in luring developments to various areas of the city and that regions such as the Valley need "to fight back and help find these private-public partnerships."

"Why can't we find these big projects and spread them out a little bit?" said Leiweke, who suggested that Villaraigosa set up a panel of the city's top leaders to develop "a master vision" for how private-public partnerships can be used "to get things done all over the city."

Bruce Ackerman, president and CEO of the Economic Alliance

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of the San Fernando Valley, said he agrees the Valley hasn't pursued projects on a "grand scale," but cited incremental gains such as the Children's Museum at Hansen Dam, a project AEG contributed $250,000 toward and that is set to break ground next month.

Ackerman blamed NIMBYism and the absence of a central business hub for some of the Valley's difficulties.

"Where is the downtown in the Valley?" he said. "There isn't a single area ... you can focus attention to generate the attention downtown gets."

Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., said the Valley and other regions need a "godfather" to push projects aggressively.

Kyser said that after LA Live, the envisioned but yet unfunded $1 billion Grand Avenue development, and a project along First Street into East L.A., "you start to run pretty thin on ideas."

"You need leaders in the San Fernando Valley to say, 'OK, this has a lot of currency for the Valley,' and then you have to get community buy-in," Kyser said.

But critics including Jon Coupal, president of the Howard Jarvis Taxpayers Association, continue to question the need for government help in financing the hotel.

"People make these kinds of predictions about revitalization, and sometimes they work and sometimes they don't," Coupal said. "Why can't (AEG) make the pitch to the hotel developers, 'I'm dropping $1 billion - why not find venture capitalists to build the hotel?"'

Acknowledging the risk in the sports/entertainment complex, Leiweke said the city stands to make $25 million to $50 million more annually in property and sales tax.

At the heart of LA Live, Leiweke said, is a "dream" to create an immediate impact on the image of L.A. and Southern California by interlocking a number of venues, events and attractions in the complex around Staples, including:

The 7,100-seat Nokia Theatre Los Angeles, aimed at capturing award shows ranging from the Emmys, Latin Grammys and ESPYs to the MTV Music and BET awards, as well as concerts, comedy shows and other events. AEG plans to spend more than $100 million on the theater.

The Grammys Museum, which has been agreed to "in principle" with the Grammy organization, to honor not only winners, but also to try to secure L.A. as the permanent home of the Grammys, possibly by adding a second "induction" ceremony. AEG hopes the museum will attract 1 million tourists a year.

A 3,700-seat cinema complex with 15 screens, including a 750-seat theater for movie premieres and screenings.

Nine high-end restaurants and bars, and a smaller Club Nokia, as well as 400,000 square feet of retail space to serve tourists, USC students and downtown residents.

Offices for AEG's headquarters, as well as some companies it does business with, including attorneys and architectural and design firms.

Housing, including lofts and condos accounting for about half the project.

Leiweke said LA Live only works downtown because of the synergy with Staples Center and the Convention Center, but that private-public partnerships that don't put taxpayers at risk are needed throughout the region.

"Our project should be the rally cry to answer the need everywhere."

[LosAngelesBeauty]

This is exciting! I'm just getting a little impatient with the whole "waiting thing." I want Downtown to finally feel "right" when I'm walking down the street, which doesn't exist right now. The only few places I can think of downtown that offers a GLIMPSE of what it could be like is 4th/Main and 6th/Flower. Both offer a sense of connection to the world I want.

[LongBeachUrbanist]

^ Yeah, I know. I remember going to the Downtown Strategic Plan meetings in the late 80's/early 90's, all the great ideas they had, there was so much promise. And really, so much has improved since then. Yet still, Downtown has definitely not yet gotten to the point where I'd like to see it.

Keep in mind, back then even 5th Street was on the wish list. Nowadays 5th Street has a renovated and expanded Central Library and gardens, Gas Co Tower, Aon Tower, renovated One Bunker Hill, etc. The past 15 years has been good to 5th Street.

And of course, this boom wouldn't be happening at all if it weren't for all the rail lines converging on Downtown L.A.

I think over the next few years we will be able to add a few areas to the list of "urban" places we'd like to see. Definitely the Staples Center area, Grand Avenue. Hopefully the important connector streets - Second, Hill, Seventh - will finally become comfortable and lively as well.

[LongBeachUrbanist]

If I have no interview, I definitely will be there tomorrow. Hopefully they'll have new renderings to show. How exciting!

[LosAngelesBeauty]

They'll actually have an entire new "interactive" model for the press to see as well as a video. The press conference actually starts at 2:30PM, so for anyone who's going, it might be wise to show up around 2PM (parking and stuff).

[LAMetroGuy]

Commentary - News




Publish Date : 09/14/2005

Hotel Deal Sounds Like Too Much of a Bad Thing
Some public officials apparently forget a key fact about Los Angeles when they sit down to deal with the private sector: This is a big-time market.

We’re the biggest city in the most populous state in the nation. We’re the second-biggest city in the U.S., and it’s only a matter of time before we’re first.

Our population has unique and valuable characteristics. We live on the leading edge of demographic trends, especially in terms of the average age and ethnic diversity of our population. The rest of the U.S. is beginning to look more like Los Angeles—which makes us the leader in understanding the marketplace realities of the new demographics.

We’re home to a dynamic mix of industry and immigration, the key port on our side of the Pacific Rim. And yes, we have our great weather, which does count.

So why must city officials—with all of that on their side—beg a billionaire to build a glamorous Downtown hotel?

Don’t get us wrong—the Garment & Citizen believes that cities should appreciate businesses that provide jobs and pay taxes. We suggest that removing unreasonable barriers to business is a proper way to show appreciation.

Using taxpayers’ money to pave the way for select businesses is a different story, however. And offering $282 million in long-term subsidies for a hotel with a price tag of $400 million strikes us as unreasonable.

But that’s the package that some city officials have suggested for the developers of the proposed hotel. The money would apparently go down one avenue or another to benefit the operations of Philip Anschutz, a Denver-based billionaire with holdings that range from the Union Pacific Railroad to the Los Angeles Galaxy soccer club.

Anschutz is planning the top-shelf hotel—with luxury condominiums on top of that—as a part of the larger LA Live project, a plan that amounts to a new vision for the Convention Center facility and parts of the nearby South Park neighborhood. Anschutz and his associates have by most accounts been good corporate citizens in pursuing the project.

It’s fair to point out, too, that the proposed subsidy would be spread over 25 years—the period during which the hotel would be allowed to keep the bed taxes it collects from guests. Estimates put the total value of bed taxes at $246 million, with the rest of the public subsidy package coming from sweet loans and fee waivers from the city and its Community Redevelopment Agency.

Some city officials have portrayed the subsidy as the only way for the project to “pencil out” for the developer. They say that the hotel is needed to draw the big crowds that will overflow to other establishments. That will produce a net gain of tax revenue to help pay down debt on the Convention Center itself—which is costing the city’s general fund $10 million a year because we apparently can’t draw the big crowds with our current crop of hotels.

The Garment & Citizen believes city officials may be using the wrong end of the pencil. We don’t pretend to know all the specifics. But we do know when numbers cry out for a thorough review—and putting $282 million in subsidies toward a $400 million hotel sounds like just such an instance. Indeed, we suspect there may be some fundamental flaw to a business plan that requires a huge public subsidy in order for a hotel at the center of a city of nearly four million people to “pencil out.” So we urge city officials to review their math, marketplace and priorities. We remind them that there could be more on the table than a bail-out on a $10 million annual shortfall on debts payments for the Convention Center.

Think about why a guy as sharp as Anschutz would go this far on plans for a project as big as LA Live if it all hinged on a $282 million subsidy for a hotel.

Think about how much it costs to hire a cop, or build a park, or provide some vaccinations for children.

Think again. —Jerry Sullivan, Editor & Publisher

[LongBeachUrbanist]

I do think the city offered more subsidies (esp. the property tax breaks) to this project than it should have. But from what I remember, these were offered by the city, not asked for by the developer. So really, this debate should've happened long ago.

Now the city needs to ink the deal and get those bulldozers moving.

Ater years of city efforts, we've finally got a fantastic development about to rise out of the once-bleak landscape of the Figueroa Corridor. This project is a key lynchpin connecting neighborhoods and drawing visitors to all of Downtown. If this thing works well, it will be the last development in Downtown that needs any subsidies, and the city will reap plenty of new tax revenues from the surrounding properties.

As they say on the island of Mypos: "He who hesitates sleeps with the goats."

[LAMetroGuy]

"If this thing works well, it will be the last development in Downtown that needs any subsidies"

LBU, couldn't have said it any better!!! You are soooo right on that... people don't see this as the city investing in its future, you can look at the $282 million subsidies as an investment that will lead to so many other projects where the city will make up the $282 million in tons of new development projects. I mean, the land in and around that area will increase in value exponentially. This will generate a healthy amount of increased property tax revenues. The additional residential developments will spur more retail projects that will also generate additional revenues for the city. The $282 million dollars in subsidies is a drop in the bucket, the city has gone on for too many years without investing or attracting something decent for downtown. Now the that the opportunity is here... JUST DO IT!

[colemonkee]

^You also have to account for a potential increase in Convention Center business. Currently the city pays $30 million per year to subsidize the Convention Center. If it can bring in more money and reduce the amount that the city pays out each year that's more money saved - or "earned".

[LosAngelesSportsFan]

Yes, why dont those valley idiots understand that this hotel and LA Live are already paying for itself in the increased activity and building going on in South Park. Do they think that these 30 projects int he area would be around if this project was not on the board?? This has already payed for itself 10 fold, and will bail out the convention center and will make LA a Prime COnvention Center city. I cant wait to shove it in their idiotic and short sighted faces when its all said and done. God i hate those negative people.

[citywatch]

Think again. —Jerry Sullivan, Editor & Publisher

Yea, I suggest you do that, Jerry.

The so called "subsidies" really are future revenues that otherwise wouldn't be poured into govnt coffers if a hotel isn't built next to Staples. IOW, if a hotel never exists on that site, the city will get ZERO dollars.

Now if DT were as lucrative as Vegas, with hotels often packed with guests & their $$, that'd be another matter. If ppl like Steve Wynn were salivating at the idea of opening a hotel in DT LA, that'd be another matter. But as Peter Zen of the Bonaventure illustrates, the hood's existing supply of hotels isn't attracting much more business than the ones in Bakersfield do.

[LosAngelesBeauty]

^ well put. Downtown LA today is blown out of the waters even by Downtown Denver.

[LAMetroGuy]

the biggest problem is that if you look at the subsidies in a vacume... yeah it doesn't make sense... BUT (and that's a big BUT) this project doesn't exist in a vacume... it affects every square inch of the area in its surroundings.... jeeez can't these people understand that? Shit... I learned that in ECON 101... ugh!

[LosAngelesBeauty]

the biggest problem is that if you look at the subsidies in a vacume... yeah it doesn't make sense... BUT (and that's a big BUT) this project doesn't exist in a vacume... it affects every square inch of the area in its surroundings.... jeeez can't these people understand that? Shit... I learned that in ECON 101... ugh!


I think u summed it up perfectly LAMG :tup:

[bobcat]

Some comments:




In a bold bid to brand Los Angeles as a world-class live entertainment center, the owner of Staples Center detailed plans Tuesday for a $1 billion, 5.5 million-square-foot sports-entertainment-residential complex


OK, since when did this become a 5.5 million square foot development? I guess it is if you include staples, the convention center and all the lots that were sold off to Lennar and South Group.


Leiweke said while LA Live doesn't hinge on the hotel's development - most of the complex would be completed within the next two to three years - it would be a "crime" if the city passes on the private capital committed to the hotel.


I thought that AEG had previously said that they wouldn't build LA Live without the hotel.



"Where is the downtown in the Valley?" he said. "There isn't a single area ... you can focus attention to generate the attention downtown gets."


Exactly. Why the hell would any tourists want to go to the SFV?


The Grammys Museum, which has been agreed to "in principle" with the Grammy organization, to honor not only winners, but also to try to secure L.A. as the permanent home of the Grammys, possibly by adding a second "induction" ceremony. AEG hopes the museum will attract 1 million tourists a year.


Just how large is this Grammys museum supposed to be that would attract 1 million visitors a year? I hope it's for free otherwise I don't see it attracting that many people.


Nine high-end restaurants and bars, and a smaller Club Nokia, as well as 400,000 square feet of retail space


I wonder if this 400,000 sf includes the museum or movie theaters. If not then that's a significant amount of space.


to serve tourists, USC students and downtown residents.


One group that we sometimes forget is the USC populace. South Park could become to USC what Westwood Village is to UCLA with lots of fun and trendy restaurants and stores.

[DJM19]

yes, its pretty important IMO that USC students come to LA Live (and all of downtown) often.

And maybe the expo line will encourage this even more.

[LosAngelesBeauty]

^ Their new logo is really cute! It's all lower case in a lime green:

l*a* l*ve (first two asteriks are actually "periods" but there's nothing on the keyboard that has stars for periods,,,and third asterik is actually a dot for the "i")


Here's a pic I took today of them setting up the tents for the press. You can kinda see the new logo on the banner in the back...

http://img371.imageshack.us/img371/5214/lalive8xd.jpg (http://imageshack.us)

There will be a "really expensive" (according to someone from AEG) interactive, detailed model of l*a* live at the press conference. I will try to get a pic of that, but I'm sure the media will be showing it anyway!

[ryanist]

http://www.latimes.com/news/local/la-me-downtown15sep15,0,4476076.story?coll=la-story-footer

2 Projects, 2 Visions of Downtown's Future

Those behind L.A. Live seek a Times Square vibe while backers of a Grand Avenue development aim for the feel of the Champs-Elysees.

By Cara Mia DiMassa
Times Staff Writer

September 15, 2005

Downtown Los Angeles will soon be flanked by two massive developments — the Grand Avenue project, centered around Disney Hall on the north, and the L.A. Live project, centered around Staples Center on the south. Each promises to create a "heart" for downtown — but with different ways of beating.

Billionaire Eli Broad, who co-chairs the Grand Avenue Committee, envisions the Champs-Elysees, while mogul Tim Leiweke, who backs L.A. Live, sees a version of Times Square.

When Grand Avenue was unveiled earlier this year, it had the feel of a coronation. Three former mayors and other prominent city leaders spoke of how the $1.8-billion project, with upscale shopping and high-rise condos, as well as a 16-acre public park, would give downtown its center.

Anschutz Entertainment Group will break ground Thursday on L.A. Live, a $1.7-billion tourist-oriented "sports-entertainment" hub featuring a 55-story convention center and hotel, 7,100-seat theater, broadcast facilities, 14-screen movie theater and nearly a dozen restaurants and clubs.

L.A. Live, however, has become a lightning rod for criticism.

Downtown hotel operators say that the proposed Hilton Hotel might hurt business by flooding downtown with too many beds. And some of the new loft and condo dwellers cringe at L.A. Live's resemblance to Universal CityWalk — saying downtown doesn't need a "Disney-style" tourist draw.

The two developments raise larger questions about downtown's future: Should the area be a dense urban mix of housing, social services and the businesses to support them? Or should it serve as a tourist destination, catering to out-of-town guests with hotels and other venues?

"They're trying to capitalize on two different markets," said Anastasia Loukaitou-Sideris, chairwoman of USC's urban planning department. "But they don't want to lower the bar too much."

Downtown boosters say there is room for both, with Grand Avenue serving downtown's upscale urban dwellers, and L.A. Live the thousands of students who live in the area, as well as visitors to Staples and the struggling Convention Center.

The project, they said, would solidify two distinct vibes for north and south downtown.

Grand Avenue would rise near the loft district, in the midst some of the city's leading arts and cultural institutions, including the Museum of Contemporary Art and the Music Center. L.A. Live is rising in the shadow of the Lakers and Kings — in an area that hosted the X Games this summer and will soon be home to several new residential developments.

Pictures of the plan provided by AEG show a venue alive with light, people and advertisements. In addition to the project's main performance space, already named the Nokia Theatre Los Angeles, L.A. Live will include a Club Nokia, which could hold 2,200 people, and a 120,000-square-foot broadcast studio, which developers expect would serve as West Coast headquarters for a national television network.

AEG Executive Vice President Ted Tanner said he envisioned a pedestrian-friendly space. All of the restaurants on the site — which will include Gladstone's, Chaya Brasserie and P.F. Chang's — are being required to have outdoor dining.

But backers are also hoping to create a vibrant nightlife for the area. They say they have persuaded the Conga Room to relocate to L.A. Live from the Miracle Mile, and have signed on the founders of the clubs Prey and Shelter to develop a small club on the site.

In addition, a 30,000-square-foot-space — which is being called a "museum experience" — is planned to showcase the history of the Grammys. Leiweke said the museum would draw 1 million visitors a year to L.A. Live.

In addition, he said the site would be used for awards shows, live broadcasts, expositions and fan fests.

"Ultimately, we believe downtown Los Angeles can become a point of destination for the region," Leiweke said. "More importantly, L.A. can be the event capital of the world."

Still, some downtown residents complained that the project was not unique and reminded them of other big-scale complexes in the region, including the Grove and the Block at Orange.

Russell Brown, the head of the Residents Assn. of Downtown Los Angeles, called L.A. Live "Universal CityWalk, with all the tourist stuff."

"It's not a neighborhood hangout type of thing," he said. "In conjunction with Staples and the Convention Center, I could see where it would be very attractive for people outside of downtown…. I would probably take friends over there. But living in the historic core, I don't think I would be going there for dinner."

Others critics, most notably the owner of the downtown Westin Bonaventure Hotel, have complained about the approximately $82 million in public aid, including market loans, tax rebates and subsidies, that the Convention Center hotel is to receive.

Some of the money being lent to the developers originates from a Community Redevelopment Agency fund earmarked for Bunker Hill. That raises questions for attorney Chris Sutton, who represents Peter Zen, the owner of the Bonaventure.

"One, is it legal, and two, is it good public policy to move money like that?" Sutton asked "There's going to be a debate whether or not you are simply robbing Peter to pay Paul."

Carol Schatz, president of the Central City Assn. of Los Angeles, a downtown booster organization, argued that those subsidies are necessary. "No convention center hotel has been built [recently] in the U.S. … without some kind of assistance from the municipality involved," she said.

Leiweke was more direct. He said his firm was honoring a long-standing promise to public officials to develop a hotel near the Convention Center — and that Zen's criticisms stem more from jealousy than civic concern.

"At the end of the day," Leiweke said, "it's all about [Zen's] own personal greed. Put a billion dollars up, Peter, and then come talk to me about ethics and moral values."

By adding a large-scale hotel to the downtown mix, Leiweke said, the city will be able to compete with other downtowns that have long been draws for large-scale events.

He also dismisses criticism about the mall-like feel of the project.

"I hear people saying we are trying to recreate CityWalk or the Grove. It couldn't be further from the truth. There will be no Gap. There will be no Discovery Zones. None of that. We avoided that on purpose, because we don't think this is a place you come to shop.

"This is a place you come to enjoy. It's about taste, it's about sound, it's about sight," he said. "And that is not, in my opinion, the Grove or CityWalk. Maybe at one point, in CityWalk's history, they used to be that. But that's not what they bring in today."

Downtown Los Angeles, after decades of decline, is in the midst of a major upswing driven primarily by an influx of residents into high-rise condos and century-old buildings converted into lofts. The number of residents downtown has grown in the last few years from 18,000 to 24,000, and most of the new lofts have long waiting lists that suggest the demand for housing remains strong.

But residents have complained that downtown still lacks the basic services — such as supermarkets and service shops — they need. They also complain about a lack of open park space.

The Grand Avenue project, backers say, would address both concerns. The $1.8-billion retail and residential complex would include a shopping center, bookstore, multiplex movie theater and gourmet supermarket. The project also calls for a terraced park connecting Bunker Hill to the Civic Center.

Brown, the president of the residents association, said that he saw distinct differences between L.A. Live and Grand Avenue.

"If the two projects were more similar, they would be competition," Brown said. "But being at the opposite ends of the spectrum," he said, "they actually complement each other."

Estela Lopez, a downtown resident who is also the executive director of the Central City East Assn., which represents business interests in the toy and industrial districts of downtown, said she welcomed L.A. Live.

"Those of us who live downtown want to have more amenities. I look at L.A. Live not just for conventioneers," she said. "I see it as yummy. We are going to have more restaurants, more after-hours places."

[LosAngelesSportsFan]

i really like the fact that they are making all ther restaurants have outdoor seating. also, i hope that extensive landscaping is included and that the Chick Hearn Station of the Blue and Expo lines is integrated into the project. it is VERY important in my opinion.

[colemonkee]

This is getting exciting...

[citywatch]

Still, some downtown residents complained that the project was not unique and reminded them of other big-scale complexes in the region, including the Grove and the Block at Orange.

Considering the hood's reputation going back a looong time, I'd say that to nitpick about LA Live in the way described by "some DT residents" is like ppl with a major case of cancer worrying over whether the burger they've just eaten is healthy or not.

I saw this on a blog yesterday &, believe me, I don't think the blogger, who talks about her teacher accepting a job at the new Colburn school on Bunker Hill, is dissing DT because of whether LA Live will be this or that:


One thing that I've learned from one of my good friends here at the University of Michigan is that you don't need to plan out your life right now. Take it a day at a time. I've taken this advice to a certain extent. It would be very easy for me to try to plan out the rest of my life. It is tempting too. You always feel more secure when you can see what lies ahead. The danger of that is that life happens and unexpected curve balls get thrown your way.......I'll see where I'm at in a couple of years and then decide whether or not to pursue performance or education as a career. I was content with that. Then the curveball came...

Last night after studio class Mr. Beene sat down in front of us and said "We need to talk..." The first thought that popped into my mind was "oh no! He's leaving." He continued, "I have been offered a position at another school that I just cannot pass up..." All of us sat there stunned and in silence as he described how next year they are opening a new music conservatory in LA. They are only doing strings next year and then adding winds the following year. He has been asked to be the bassoon teacher and chair of the woodwind department. Awesome opportunity for him, sucks for those of us left behind.

I'm going to have a new bassoon teacher my senior year. I don't think that has quite sunk in yet and probably will not until I walk into the bassoon studio in the fall of 2006 to find not Mr. Beene, but someone new. I don't like change.......There are up sides to this though too. I'll get a new perspective from a different teacher my senior year. The school that Mr. Beene is going to sounds like it might be a good candidate to consider for graduate school. Tuition and room and board is FREE! The entire school is going to be the size of a romantic orchestra. Four bassoons, that's it. If only it weren't smack in the middle of the most horrible place on earth: downtown LA (right across from the new Disney Hall). Mr. Beene in my lesson brought up the fact that I might want to audition there for grad school. If there is one thing that can get me back to California it is the chance to study more with him at a school like that.

[LongBeachUrbanist]

Hope y'all are going to be there this afternoon.

BTW, I didn't ask before, but this is open to the public without RSVP, right LAB?

[Bernd]

If only it weren't smack in the middle of the most horrible place on earth: downtown LA (right across from the new Disney Hall).

Clearly the blogger hasn't been to Oklahoma.

[bobcat]

BTW, I didn't ask before, but this is open to the public without RSVP, right LAB?

If not, I'm sure LAB will sneak you in round back. :D

[yeah215]

Press Release Source: AEG

AEG Breaks Ground on $1 Billion Sports and Entertainment District
Thursday September 15, 3:21 pm ET
Announces Addition of New Business Partners, Including: ESPN, Regal Entertainment Group, The Conga Room, GRAMMY(R) Museum and Hilton Hotels

LOS ANGELES, Sept. 15 /PRNewswire/ -- AEG President and CEO Timothy J. Leiweke was joined by elected officials, business leaders, and new business partners for the official groundbreaking of l.a. live, a more than $1 billion, 4 million square-foot Downtown Los Angeles sports and entertainment district. Located adjacent to STAPLES Center, the l.a. live project, considered the largest development in Los Angeles' history, will be host to an exciting mix of venues and facilities.
"On behalf of AEG and all of our partners, we are here today to break ground for the largest and most important development in the history of Downtown Los Angeles, l.a. live," said Timothy J. Leiweke, President & CEO, AEG. "This project is real, this project is happening and this project is important. l.a. live will give Los Angeles the ability to attract the best and most important events for our city."

"Most importantly, our company's investment of nearly $1 billion coupled with an additional $3.5 billion commitment from the other private investors in l.a. live and the surrounding downtown residential district has brought this city a fully privatized, fully financed and fully entitled development. A $4.2 billion development that does not require any public subsidy," Leiweke added.

At the groundbreaking, Leiweke announced several new, major l.a. live business partners:


* ESPN will create a regional headquarters and sports entertainment venue
in a unique 120,000 sq. ft. broadcast studio that will be the home for
a number of live and taped programs. Included in this building will be
the ESPN Zone -- a multi-level restaurant, sports bar, and game area.
An approximately 10,000 sq. ft. radio broadcast center is also planned
for live radio in an adjacent building.

* Regal Entertainment Group will develop a 90,000 sq. ft. cinema complex
with 3,700 seats and featuring digital sound, stadium seating, and
state-of-the-art projection systems. This flagship theater will serve
as a new venue for movie premieres and special screenings.

* The GRAMMY® Museum will be housed in a 28,000 sq. ft. space designed
for a permanent display of music genres and the science of recorded
music as well as new interactive presentations recognizing past and
president GRAMMY® winning artists.

* The Conga Room will bring to l.a. live the club's world-renowned Latin
music and culture. Over the years, The Conga Room has showcased many
top Latin entertainers, including Celia Cruz, the Buena Vista All
Stars, Andy Garcia presenting Cachao, and Carlos Santana. The new
facility at l.a. live will be two stories, featuring a 6,500 sq. ft.
ground floor restaurant and radio broadcast facilities and a 9,200 sq.
ft. live entertainment and nightclub space upstairs.

* Gladstone's 4 Fish, Junior's Deli Boys, Il Moro, Katsuya, and New
Zealand Natural will provide a variety of established dining
opportunities for l.a. live visitors. Agreements with P.F. Chang's and
French 75 are in the final stages of negotiations.

* Hilton Hotels will operate the Los Angeles Convention Center
Headquarters Hotel, a four-star facility with 1,100 guest rooms,
approximately 160,000 sq. ft. of meeting, ballroom and amenity spaces,
parking, retail, and other guest services. The signature beacon of the
district at approximately 50 stories in height, the hotel's main lobby
will open onto Olympic Boulevard and facing the Central Business
District.

Upper floors will house luxury suites to accommodate visiting sports
teams, headline performers, and upscale guests. The hotel will also
include up to 111 fully serviced luxury condominium units on the top
floors offering 24-hour valet and concierge staff, food and room
services, and other amenities. The 1.1 million sq. ft. hotel will be
developed by Wolff-Apollo and designed by Gensler.

The hotel is expected to significantly boost efforts to attract key
conferences, exhibitions, conventions and corporate meetings to the
convention center, strengthening the entire Los Angeles region's
tourism and new business opportunities. City general funds will not be
used to finance the hotel's development.
"Sports and entertainment often converge in the diverse city of Los Angeles and establishing a major presence there is a very positive step in the long-term growth of our company," said George Bodenheimer, President, ESPN, Inc. and ABC Sports and Co-Chairman, Disney Media Networks. "Originating more programming and extending our brand with an ESPN Zone will create a stronger ESPN. Given the success of our past collaborations with AEG and the scope and promise of l.a. live, we are eager to expand our L.A.-based operations."

"Regal Entertainment Group is excited to be part of such a major development that will certainly transform and energize downtown Los Angeles. The new Regal Cinemas l.a. live Stadium 15 will be a flagship theatre for our company that will benefit from being part of this new entertainment community. Regal looks forward to working with our studio partners to host world premieres and special events at this dynamic new location," said Mike Campbell, CEO, Regal Entertainment Group.

"Diversity is the lifeblood of our vibrant city. The Conga Room is proud to partner with l.a. live to showcase its unique brand of Latin American culture and music," said Jimmy Smits, co-owner, The Conga Room.

"Hilton is pleased that we have been selected to manage this new hotel, particularly since it is located in our corporate back yard. Hilton's reputation for excellence in managing convention center hotels throughout the country is unmatched and we look forward to working with AEG, Wolff-Apollo and the City of Los Angeles as this exciting project progresses," said Ernest Wooden, Jr., Senior Vice President - Hilton/Doubletree Operations West, Alaska, Hawaiian Islands, and Mexico, Hilton Hotels Corporation.

"Great cities attract great conventions and visitors. This Hilton hotel and l.a. live will establish Downtown Los Angeles as a world class destination. Our team is absolutely committed to bringing this hotel to life and transforming Los Angeles into one of the most attractive destinations for conventions in the nation," said Lew Wolff, Chairman and CEO, Wolff Urban Management, which is co-developing the Los Angeles Convention Center Headquarters Hotel.

"As one of the most recognizable brands in the entertainment business, the GRAMMY Award is the premier symbol of musical excellence for consumers around the globe," said Neil Portnow, President, The Recording Academy. "We are thrilled to extend our long-standing partnership with our friends at AEG and look forward to being a part of expanding L.A. as the entertainment capital of the world!"


Other key components of the entertainment district include:

* NOKIA Theatre, a 7,000-seat live performance venue that in addition to
being a stunning new concert facility will also become the permanent
home of numerous awards shows and special events;

* A 40,000 sq. ft. open-air plaza designed to accommodate broadcast
events, large celebrations, outdoor concerts, and festivals. The plaza
also will serve as the primary limo drop off and red carpet zone for
major events;

* An interactive museum that will include permanent displays as well as
regularly updated interactive exhibits featuring nominees from the
awards shows held at the surrounding facilities;

* 5,300 new parking spaces will be added to supplement the existing
parking supply servicing STAPLES Center and the Los Angeles Convention
Center;

* Numerous high-end fine dining, casual and ethnic restaurants as well as
nightclubs, coffee shops, and bistros which will provide a rich mixture
of high quality food and settings, providing visitors with a true
"Taste of L.A.;"

* Building space earmarked to host a major food brand. The four-level
building will include restaurants, a unique marketplace, cooking
classes with celebrity chefs, culinary retail, food channel
broadcasting, thematic/educational attractions, research and
development kitchens, corporate offices, and garden terraces; and

* 4,000 residential apartments and loft condominiums within three blocks
of the sports and entertainment district are under construction or in
the planning stages.
"We are grateful for the leadership of Jan Perry first and foremost, along with City Council President Alex Padilla, the entire City Council, Mayor Antonio Villaraigosa and so many more of our City's officials who have remained committed to making l.a. live a reality," said Leiweke.

"Today Los Angeles is reaffirming its position as the entertainment capital of the world. l.a. live will bring a vibrant sports and entertainment district to Downtown Los Angeles with exciting new places for families to dine and watch a movie, concert or game. The entire City of Los Angeles will benefit from the thousands of jobs it will create and billions of dollars it will pump into our local economy," said Mayor Antonio Villaraigosa.

"The l.a. live sports and entertainment district is a boom for our local economy and the world-class facility will continue downtown's unprecedented revitalization efforts," said State Senator Gil Cedillo, who represents the area where the project will be developed.

"l.a. live's restaurants, theaters, landscaped courtyard, and media headquarters are certain to continue our efforts to reinvigorate our city center and make it an even more attractive destination for tourists and local families alike. Additionally, the project brings a wealth of quality job opportunities and profound economic development to the South Park neighborhood, surrounding areas, and the city as a whole," said Los Angeles City Councilwoman Jan Perry, who represents the 9th Council District where the project will be located.

"There is no more defining influence on the future of Downtown L.A. than the l.a. live development by AEG," said Mark Liberman, president & CEO of LA INC. The Convention and Visitors Bureau. "It presents LA with the promise of a wholly new and exciting visitor destination in the center of the second largest city in the country. Our industry is eager to work closely with AEG, its partners and the City to make the vision presented today a reality. There's no hiding the fact that what we've seen today can be a convention sales organization's dream come true."

The sports and entertainment district will be developed over an eight- to 10-year timeframe.



Additional Background

About AEG

AEG is one of the leading sports and entertainment presenters in the world. AEG, a wholly owned subsidiary of The Anschutz Corporation, owns or controls a collection of companies including facilities such as STAPLES Center, The Forum (as exclusive booking agent for sports and entertainment programming), HealthSouth Training Center, NOKIA live at Grand Prairie and Kodak Theatre (as operator); sports franchises including the Los Angeles Kings (NHL), the Manchester Monarchs (AHL), Reading Royals (ECHL), Chicago Fire, DC United, Los Angeles Galaxy, Metrostars and San Jose Earthquakes (MLS), five hockey franchises operated in Europe and management of shares of the Los Angeles Lakers (NBA) and Los Angeles Sparks (WNBA) owned by Philip Anschutz; AEG Marketing, a sponsorship, sales, naming rights and consulting company; AEG Merchandising, a multi-faceted merchandising company; AEG Creative, a full- service marketing and advertising agency and AEG LIVE, a collection of companies devoted to all aspects of live entertainment including: AEG TV (formerly Spring Communications) devoted to creation and marketing of live events for pay-per-view and other electronic media; Creative Battery, producers of live entertainment for a variety of media and venues; AEG Tours & Special Events and Golden Voice, live entertainment promotion and touring companies. AEG LIVE is currently producing Celine Dion A New Day ... Presented By Chrysler, a spectacular theatrical production starring Dion and an international cast of 60 dancers, musicians and artists and directed by Franco Dragone currently being performed exclusively at the Colosseum at Caesars Palace in Las Vegas.

In addition, AEG has recently developed and opened The Home Depot Center, a $150 million national training "campus" in Carson, California designated as an "Official U.S. Olympic Training Site" by the United States Olympic Committee that includes major facilities for soccer, tennis, track and field, cycling, volleyball, basketball and other sports. The company was recently selected to fully develop the 28-acre Millennium Dome and adjacent property located in the eastern part of London along the Thames River and will create new arenas within the Millennium Dome and on a 50-acre site in the heart of Berlin.

About Nokia

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed broadband and IP networks. By adding mobility to the Internet, Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on five major exchanges.

[citywatch]

:carrot: :carrot: :carrot:


....& now, Peter Zen & others, please shut your yaps about subsidies for the hotel. If you ppl hadn't been such nuisances & pains in the asses, & so penny wise & pound foolish, the new Hilton would be under actual construction right now too, along with the Nokia Theater. :hell:

BTW, "subsidies" can be easily misread or mis interpreted because the word makes it sound like real $$$ will be going straight from city hall to the proj, when in fact the so called subsidy refers to the amt of taxes that the hotel will or will not have to pay, or taxes that otherwise wouldn't be generated if there were no hotel to begin with.

[bobcat]

From the LA Times:

http://www.latimes.com/media/graphic/2005-09/19474080.gif

According to the diagram, there are plans for development parking lot directly across from the Hilton between Georgia and Francisco. Good to hear.

[WesTheAngelino]

Y'know what would rock? Flat rate taxi rides within the DTLA freeway loop, similar to the system of flat rate taxi quadrants in DC

[DJM19]

So, once the convention center begins to make money, do you think they will add on the expansion?

As long as they are just expanding they shouldnt have to close it.

[LosAngelesSportsFan]

i dont think it will close anytime soon, and with the revitilization of DT, with or without the hotel, the convention center willg et better, however with the hotel it will be 10 fold. I cant wait to see some of this under construction!! wow i really cant wait.

[LAMetroGuy]

this is so exciting.. i am in sacramento.. there is no place like home!

[enigma99a]

^ Come to Sac in 2-5 years and it won't even be the same city;) But still, no place like home. I used to have a traveling job and flew 4 times a week to different cities, every week. Gets old quick.

[ksep]

just got back from the groundbreaking. i didn't even plan on going, but i got out of work early. anyway, the model looks friggen awesome. it didn't just include l.a.live, but the entire neighborhood, including all the future residential towers. and they were all lit up from the inside. fuck man, i wish i had brought my camera. the hanover tower on figueroa and olympic looks really cool - shit, everything looks really cool. but what is up with that grammy museum? who wants to see that. the history of the grammys??? - gimme a break.

btw, there is also gonna be some ice cream place and, of course, starbucks. :eek:

[DJM19]

I saw the model on Channel 4 news. Though they didnt show it too long, it looks great. The best part IMO was that it shows all (or at least most) of the south park towers rising up and you have the full picture. Though I dont think it included towers like Zen or other ones without detailed models.

[JRinSoCal]

Didn't anyone take a camera to this event? I'm dieing to see pics of this model. I wish I could have been there but I had to work.

[DJM19]

I saw the model on Channel 4 news. Though they didnt show it too long, it looks great. The best part IMO was that it shows all (or at least most) of the south park towers rising up and you have the full picture. Though I dont think it included towers like Zen or other ones without detailed models.


p.s. on a side note while watching news, they had a story that the mayor will be living in the Getty House. The past two mayors have only used it for ceremony, but Villarigosa will live in it at least part time.

[LAMetroGuy]

Pictures please!!!!!!!!!!!

[ThreeHundred]

So I just saw the models on channel 2 and i must say that it looks stunning. So many buildings that were all lit up. I love lights as some of you may or may not know.

If LA Live looks this good, imagine what Grand Ave will look like!!

[LongBeachUrbanist]

I will have pictures very shortly. I just got home, need to upload them. Also cooking my family dinner. Briefly, it was very cool, they had a giant lighted model that even included a few of the other Figueroa projects. You'll see in a few minutes.

[tujunga]

Like dinner can wait. te he he

[tujunga]

You done with dinner yet?

[LongBeachUrbanist]

Here's a sneak peak...

http://skyscraperpage.com/gallery/data/500/7615lalive01.jpg

http://skyscraperpage.com/gallery/data/500/7615lalive02.jpg

[ksep]

btw, one block away, on flower street, right across from the met lofts, there is some construction going on that seems to include this little brick building that they partly tore down. there is a big banner saying: coming soon - LIBERTY GRILL. :D

[LongBeachUrbanist]

I walked Figueroa from 21st to 12th (Staples Center), and realized there is literally no retail along that entire stretch except for Staples, Office Depot, and Enterprise Rent-a-Car. And all those are south of the 10 Freeway.

IOW, there is literally nothing to do on Figueroa now south of say Olympic. I can't wait until that changes.

[DJM19]

Ok, I have seen this in the "floor plan" for LA live, there is a building across olympic st from the hilton hotel. And the building is in this model from what I can tell. What is this development? It says its another hotel on the map.

Its right above the hilton hotel and called "future hotel":

http://www.latimes.com/media/graphic/2005-09/19474080.gif

[JRinSoCal]

So when can we expect to see construction crews??

[LongBeachUrbanist]

First pics as I waited to get in. View down 11th Street:

http://static.flickr.com/33/43682464_82dd6e5296_o.jpg

Met Lofts:

http://static.flickr.com/32/43682465_e60e6e96a3_o.jpg

Holiday Inn:

http://static.flickr.com/32/43682466_8a8558a248_o.jpg

A couple shots of Staples:

http://static.flickr.com/28/43682467_221b9edd74_o.jpg

http://static.flickr.com/24/43682468_72be6aef6b_o.jpg

Some shots of the fantastic model they had of the area after LA Live and other things get built:

http://static.flickr.com/31/43682469_77df6f5e89_o.jpg

http://static.flickr.com/26/43682689_adea6bf797_o.jpg

http://static.flickr.com/33/43682690_8d28845e0d_o.jpg

http://static.flickr.com/28/43682691_436109af29_o.jpg

http://static.flickr.com/24/43682692_59034a5b6a_o.jpg

Ceremonies:

http://static.flickr.com/32/43682693_8cda324301_o.jpg

http://static.flickr.com/26/43682695_6529ffec30_o.jpg

[LosAngelesBeauty]

^^ Most likely a higher end hotel catering to the business traveler

[LongBeachUrbanist]

More ceremonies, the actual groundbreaking, lots of confetti:

http://static.flickr.com/31/43682923_fbaf1c145d_o.jpg

http://static.flickr.com/24/43682924_39a946ed33_o.jpg

http://static.flickr.com/29/43682925_7e2ba9bc0b_o.jpg

FIDM Tower rendering:

http://static.flickr.com/33/43682926_f3d8617e4d_o.jpg

Hilton rendering:

http://static.flickr.com/24/43682927_401500efd5_o.jpg

Olympic/Figueroa rendering:

http://static.flickr.com/26/43682929_d915a2f12b_o.jpg

Some close-up shots of the model:

http://static.flickr.com/25/43683178_d4ff1d0335_o.jpg

http://static.flickr.com/29/43683179_4acbd4a241_o.jpg

http://static.flickr.com/27/43683180_74cf88de3c_o.jpg

http://static.flickr.com/26/43683181_c9ddc3e2e9_o.jpg

Drawing:

http://static.flickr.com/32/43683182_9d8668f592_o.jpg

VR/Multimedia presentation (sorry 'bout the blurriness!):

http://static.flickr.com/32/43683183_48c2f3092b_o.jpg

[DJM19]

oh ok. And is that the actual convention center extension I see? Or just a place holder with no true designs planned.

[tujunga]

Awesome, Thanks!

[LongBeachUrbanist]

I believe it's a place-holder. The map said "Future Convention Center Expansion", so I doubt they're even considering renderings.

Especially since the Conv. Center is currently a money-loser, I doubt they're interested in expanding now.

[ksep]

they should just drop the expansion plans for the convention center and use that space for a even bigger l.a.live.

[towersla]

In addition to the Nokia Theater, what other component of l.a. live will be constructed during the first phase?

[bobcat]

They have to build the underground parking first before most of the rest of the development can be constructed. I don't know if Nokia Theatre will be sitting on top of it, but I do know the hotel and retail will go above the parking.

[DJM19]

Yeah, I figure thats why they wont be starting the other things for awhile. The parking structure will probably be pretty big.

[Milton]

Cool!

[citywatch]

.

[citywatch]

:carrot:

LA Times, Sept 16, 2005

ESPN Plans Studios Next to Staples Center

It expects to produce live shows in facility that will be part of the AEG entertainment complex.

By Greg Johnson and Larry Stewart, Times Staff Writers

ESPN, the cable television sports giant, expects to dramatically bolster its Southern California presence by building a television and radio production center and an ESPN Zone sports bar and restaurant in the downtown entertainment district that AEG has proposed for a parking lot next to Staples Center. ESPN announced plans for the $100-million, five-story building Thursday, minutes before Los Angeles officials joined AEG executives in a ceremonial groundbreaking for the LA Live sports and entertainment district.

Los Angeles Mayor Antonio Villaraigosa joined other speakers in praising AEG's vision for the sports and entertainment complex. Villaraigosa said the development, which will include a 1,000-room hotel, restaurants, retail shops, a 7,100-seat live theater and a 15-screen movie complex, was proof of Los Angeles' being the "creative capital of the country and the entertainment capital of the world."

The ESPN facility, when completed in 2009, will produce live and taped programming for the network's growing family of sports channels. The 70,000-square-foot television production facility will include two state-of-the-art, high-definition television studios. ESPN eventually will add West Coast on-air talent and beam broadcasts live from downtown Los Angeles to the rest of the world.

"This is a big day for our company," said George Bodenheimer, president of both ESPN Sports and ABC Sports and co-chairman of Disney Media Networks. "An expanded base in Los Angeles will help fuel our overall long-term growth."

ESPN has a relatively small presence in Los Angeles, where it operates a regional sales office and a news bureau. ESPN also manages the X Games competitions from an office in Los Angeles and operates an ESPN Zone restaurant in Anaheim. Most of the company's programming is produced in studios at its headquarters in Bristol, Conn., and studios in New York. ESPN uses Southern California studios to produce talk-show host Jim Rome's "Rome Is Burning" and the new "ESPN Hollywood" show.

The ESPN television studio will remedy what Tim Leiweke, president and chief executive of privately held AEG, has described as a glaring absence of live television stemming from "the content and entertainment capital of the world." Leiweke praised ESPN for agreeing to build its West Coast regional headquarters in downtown Los Angeles.

Bodenheimer said it was "premature" to say what programming would be produced in Los Angeles. The two studios that will fill 70,000 square feet should be able to accommodate a variety of programming, including some of the network's signature "SportsCenter" shows. Bodenheimer also said the Southern California center would play a significant role in producing content produced for ESPN Deportes, the company's Spanish-language sports channel.

Some in the television industry had expected ESPN to move into Burbank, where parent company Walt Disney Co. has its headquarters. ESPN Senior Vice President Bob Eaton said that the network chose the downtown studio so it could "benefit from all of the excitement you're going to see at Staples with LA Live."
To that end, a roof-top camera will provide scenic shots of the downtown Los Angeles skyline to the north, while studio windows will turn the adjacent Staples Center and the soon-to-be-built entertainment complex into live background sets — in much the same way that television studios in New York use Times Square as a scenic backdrop.

The ESPN Zone restaurant and bar that will be incorporated into ESPN's downtown location will put the company in direct competition with Fox Sports, which operates a Fox Sports Grill and a regional television studio inside Staples Center. According to Fox spokesman Lou D'Ermilio, ESPN's arrival will not affect either of those locations, and the studio will continue to host the nightly "Southern California Sports Report."

:carrot:


And thanks for posting those pics, LBU

[LongBeachUrbanist]

ESPN Plans Studios Next to Staples Center
It expects to produce live shows in facility that will be part of the AEG entertainment complex.

Oops, I forgot to mention that. They even talked about it quite a bit yesterday, it's kinduva big deal.

To that end, a roof-top camera will provide scenic shots of the downtown Los Angeles skyline to the north, while studio windows will turn the adjacent Staples Center and the soon-to-be-built entertainment complex into live background sets — in much the same way that television studios in New York use Times Square as a scenic backdrop.

Nice!!!

And thanks for posting those pics, LBU

No problem. Glad to see your carrot dancing, er, well, you know what I mean!

[LongBeachUrbanist]

Also, several restaurants are planned, including Gladstones, and a Japanese place with a world-renowned chef. The Conga Room will be moving to LALive as well.

[SaF9]

Thanks you for attending and posting the pictures!!

I remember when I first joined the forum the “Staples II” development was all just speculation(even recall hearing talk that it’d be completed around 2004 lmao), now its finally a reality! :D

[bobcat]

The Conga Room to Open Nightclub and Entertainment Venue at l.a. live in Staples Center; Jimmy Smits, The Conga Room Co-Owner, Digs In at Groundbreaking Ceremony

747 words
16 September 2005
06:30 am
Business Wire
English
(c) 2005 Business Wire. All Rights Reserved.

LOS ANGELES - (BUSINESS WIRE) - Sept. 16, 2005 -

The Conga Room Nightclub, Restaurant & Concert Venue to Feature Television and Radio Broadcast Capabilities

The Conga Room, L.A.'s world-renowned Latin nightclub and live entertainment venue, will open an expanded concept of its original Wilshire Boulevard location at l.a. live, in downtown Los Angeles adjacent to the STAPLES Center. l.a. live, developed by an affiliate of Anschutz Entertainment Group (AEG), is a more than $1 billion, four million square-foot Downtown Los Angeles sports and entertainment district development project considered the largest investment in the history of Los Angeles.

"Diversity is the lifeblood of our vibrant city," said Smits. "The Conga Room is proud to partner with l.a. live to showcase its unique brand of Latin culture and music."

In addition to Smits, Jennifer Lopez, Sheila E., Paul Rodriguez and Bobby Bonilla are among the celebrity investors of the upscale nightclub which first opened its doors in 1998 at its current Wilshire Boulevard location.

The Conga Room is currently in discussions with media partners to develop programming as an exciting new area of business that will include on-site, daily programming similar to MTV's TRL, The Conga Room Shows, and special events.

"In addition to presenting the best in Latin music, The Conga Room will bring together the music, culture and fashion to expanded audiences, incorporating television and radio broadcast capabilities within our venue," said Brad Gluckstein, CEO, The Conga Room.

Smits, joined by Timothy J. Leiweke, President and CEO, Anschutz Entertainment Group; Mayor Antonio Villaraigosa, Los Angeles City Council President Alex Padilla; Los Angeles City Councilmember Jan Perry; Mark Liberman, President and CEO, LA Inc.; Neil Portnow, President, Recording Academy and GRAMMY(R) Foundation; and Jo Harlow, Vice President of Marketing, Nokia, took golden shovels in-hand to participate in the groundbreaking ceremony held at the future l.a. live location. Brad Gluckstein, CEO, The Conga Room, also participated in the day's celebratory activities.

Over the years, The Conga Room has showcased many top Latin entertainers of various musical genres including tropical, rock en espanol, jazz and reggeton. Latin music legends that have graced The Conga Room stage have included Celia Cruz, the Buena Vista All Stars, Andy Garcia presenting Cachao, and Carlos Santana. The Conga Room has played host to such notable events as the 2001 Latin GRAMMY(R) Awards. La Boca at The Conga Room features Nuevo Latino cuisine that has earned critical-acclaim from top restaurant reviewers.

The Conga Room at l.a. live will be designed as a two-story building, with direct views into Nokia Plaza, north of STAPLES Center bordered by Figueroa Street on the east end and Olympic Boulevard on the north. It will feature an estimated 6,500 square-feet of ground floor restaurant space as well as radio broadcast facilities. The venue will also feature approximately 9,200 square-feet of upstairs live entertainment and nightclub space that will include a large performance stage, several bars, and a 2,000 square-foot, state-of-the-art programming facility. Construction is scheduled to commence immediately with an estimated 18-month window for completion.

The Conga Room's current location is 5364 Wilshire Boulevard in the historic Miracle Mile District in Los Angeles. Featuring world-class international Latin music acts in an elegant and comfortable setting, The Conga Room is available for corporate parties, movie openings, social and business events. For more information contact the box office at 323-938-1696.

for The Conga Room Sybil Alicia MacDonald, 323-692-0655 Adela Romero, 562-506-5624

[LosAngelesSportsFan]

Great pics, thanks for all the updates! i tried to go but they told me i needed a invitation so i left.

[LongBeachUrbanist]

I got walked in by a nice Anschutz real-estate manager. She overheard me telling the purple shirt about the fact that I drove from Long Beach and walked from 21st Street to attend. Thanks for the charity, lady, whoever you are. :)

[bobcat]

From the ESPNZone website:

THE ESPN BUILDING – 11 th STREET ( CHICK HEARN COURT) AND FIGUEROA

The five-floor ESPN building will be located directly across from STAPLES Center and next to LA Live’s open air plaza. The top three floors of the building will accommodate 70,000 square feet of production facilities, highlighted by two large high definition studios – one 7,500 square feet and one 5,000 square feet. The floors will also contain supporting television production components, such as control rooms, master control facilities, editing facilities, a screening and newsroom area, production space and more. Also, a radio studio will be located on the fifth floor.

Additional production locations in the building, such as outside balconies and glassed-in areas, will overlook LA Live, STAPLES Center and other parts of downtown Los Angeles, providing a lively television backdrop. While specific plans are not finalized, a variety of programs are expected to originate from the LA-based studios, including ESPN Original Entertainment (EOE) series, SportsCenter segments and much more.

The bottom two floors will house an approximately 30,000-square-foot ESPN Zone, featuring a retail section, a dining area and an arcade. Some ESPN production offices will also be located on the second floor. This will mark the ninth ESPN Zone, joining Atlanta, Anaheim, Baltimore, Chicago, Denver, Las Vegas, New York and Washington, D.C.

[LAMetroGuy]

So, just for my own understanding... are the comments within this picture correct?

http://img.photobucket.com/albums/v600/rpulido/img4004sm8ae.jpg
* Thannks to LAB for the photo.

[colemonkee]

Looks correct to me! I think the smallest Lennar "tower" is more like 8 stories, though. But I could be wrong.

[ocman]

All the glowing structures have yet to be built?

[DJM19]

All the glowing structures have yet to be built?

except for met lofts...

[colemonkee]

^ and Elleven, which has half of the roof already poured.

[LAMetroGuy]

Looks correct to me! I think the smallest Lennar "tower" is more like 8 stories, though. But I could be wrong.

Yes, I agree it does look more like 8 but the press release said 15. That is why I put a question mark.

Also, I thought that the 2nd Williams & Dame project was going to have a 3rd tower????

[colemonkee]

It was supposed to orignally, but I read somewhere on this forum that they sold the southern part of that block to another developer. Details were sketchy, but I remember reading it somewhere.

[LAMetroGuy]

I see.... hmmm, I hope that other developer is planning on building something over 15 stories.

At the rate Luma and Elleven are selling, I am surprised that W&D would sell the land and not opt for the third tower which is almost guaranteed to sell out before the first bulldozer shifts into first gear.

[ThreeHundred]

Hmm..I thought the three blue towers were the Venture project.

[LAMetroGuy]

holly crap, yeah ur right??? crap, I'm confused!

[LosAngelesSportsFan]

this just in...

L.A. City Council OKs Downtown Hotel Package Worth Up to $286 Million

By ANDY FIXMER
Los Angeles Business Journal Staff

The Los Angeles City Council on Friday approved subsidies worth up to $286 million to help finance a 1,100-room hotel next to the city’s struggling convention center.

In a 10-0 vote – with Councilmembers Ed Reyes, Greig Smith and Jack Weiss absent – the city council approved giving the hotel’s developers a $16 million loan from the Community Redevelopment Agency and a waiver from paying bed taxes on the finished hotel for 25 years.

Hotel consultants estimate the 25-year bed-tax waiver to be worth $155 million to the hotel’s developers. However, its value could go higher if the hotel generates more usage than expected. City Council members voted to cap the total amount waived over the 25-year period at $270 million.

[LAMetroGuy]

^ Great news! maybe they were waiting on this before they really "break gound"! ha!

Anyway, I found this with regard to Ventrue (which is the project name, and the developer is Lennar so its the same thing):


Here is what kaplan wrote in downtown news about the 40, 25, and 17 story towers on that one block:

Distinctively modern glass towers also mark a mixed-use complex of 700 units of housing set on a two-story podium of 250,000 square feet of retail and restaurants with a Times Square flair proposed for the critical block bounded by Figueroa, Flower, 11th and 12th streets. The site across from Staples Center is being assembled by a consortium of the Lennar Corporation labeled the "Venture."

The masterly design by the firm of Johnson Fain Partners calls for three towers of 40, 25 and 17 stories, hovering over a promenade fashioned by the skillful Studio 111. The promenade slices the block diagonally and is edged by an array of stores and eateries, anchored by a large neighborhood grocery and a small park.