[Wright Concept]

They could have revitilized the theaters on Broadway for Cheaper, and it would have been a more active URBAN setting. This would have linked Fashion District, South Park, Convention Center into one spine connecting it all together.

Talk about Synergy!

[bobcat]

^I'd rather the Broadway theaters show live entertainment.

[LAMetroGuy]

Yes, Broadway could be the West Coast version of 42nd Street. Actually, it would be better because Broadway maintains the largest collection of pre WW1 historic theaters in the nation!

[BrighamYen]

Again, I hope you're right. But I doubt it. As I said before, theatre admissions are flat, trending down. For the L.A. Live Regal to succeed, it would really have to do a great job pulling people away from the theatres they currently patronize. Since the L.A. market is already so saturated with new theatre construction from the last decade, I don't see that happening.

Again, you fail to see that l.a. live is unique not only in its design (with massive electronic billboards that will illuminate the night sky giving life to an area) and its large size (4 million square feet), but that it is located in our very own Downtown. A place where MANY, MANY people are feeling more and more attracted to, not only for living, but for entertainment options. There's something about being underneath our glittering skyline that is not unlike any other larger downtown that is/or will be thriving. Again, watching a movie is one thing, but where you watch it will can be a whole nother thing. I personally do not prefer to watch movies in my neighborhood because I think it's smallish and boring and many of my friends feel the same way.

Of course, I'll be a downtown resident before year's end, so I am one of many residents who would like to see a GREAT movie theater downtown.

[JRinSoCal]

I for sure will be one of those who drive to downtown LA to the new Regal at LA Live to see a movie and feel the urban energy of the place. It'll be a feeling you just won't get anywhere else in the suburbs.

BTW, I live in Anaheim.

[Bernd]

LOL. OK. You win. Hard to argue with a fantasy.

[BrighamYen]

^ It's called a vision and hope. Something leaders usually have.

[Bernd]

Are you a leader?

[JRinSoCal]

Don't worry. Downtown Los Angeles will be discovered by many soon. Its just a matter of time.

[Inch Blue]

Taken from SSC: WHOA, breaking News-

--------------------------------------------------------------------------------

http://www.labusinessjournal.com/ar...387.2263511.971

Posted date: 11/21/2005
Negotiations Fail for Downtown Hotel

Negotiations broke down for a 56-story downtown hotel touted as a linchpin in the success of the $4.2 billion L.A. Live sports-and-entertainment complex, despite a $250-million public financing package, the Daily News of Los Angeles reported.

Century City-based Apollo Real Estate Advisors, which was expected to provide about $60 million for the 1,100-room Hilton hotel, pulled out of the talks, according to City Councilwoman Jan Perry, the paper said.

The deal involving Apollo and co-developer Wolff Urban Development appeared strained for months as hotel construction costs soared to more than $500 million, and the city offered no further concessions. Apollo Real Estate Advisors was said to be floating changes to the hotel’s design in an effort to bring down costs. Some speculated that AEG may have resisted and the breach in negotiations was an attempt by one, or both, parties to force more favorable terms, the Daily News said.

Billionaire Philip Anschutz – owner of AEG, which owns the Staples Center and is investing $1 billion in the complex under development – and company president Timothy Leiweke now are reported to be looking for new equity partners.

In addition to agreeing to forgo as much as $270 million in room-tax revenues from the hotel over 25 years, the Community Redevelopment Agency agreed to a $16 million below-market loan, and the city has authorized $4 million in fee waivers.

Critics question whether such a public investment in a hotel is warranted.

[JRinSoCal]

Oh great! Just what we need. :pissed:

[Wright Concept]

The irony to that whole thing, is that Peter Zen wins big time, he gets a large subsidy AND the LA Live development falls through temporaily

[colemonkee]

So the LABJ is now recycling news from the Daily News? I expect much more for them. They just forgot to include the analyst's take on the situation - that AEG and Leo Wolff should be able to quickly and easily find a replacement. Keep in mind that construction on the hotel portion isn't supposed to start for a while, so I don't think this will delay anything.

[BrighamYen]

Sheesh, this is BS! How is that these huge companies can't finance a single tower in LA, but cities like SD and SF that are both in California as well SEEM to be building towers "just fine?" I'm confused, can someone enlighten me?

[RAlossi]

Seriously. It seems like every other city has so much going on while we're struggling to get a few towers going. Is it red tape? Is it high land costs? Is it lack of will? Bad luck? All of the above?

I want some real construction! Now!

[WesTheAngelino]

I think we're all forgetting that the ghosts of DTLA redevelopment past are still looming in the minds of developers.

[citywatch]

Is it red tape? Is it high land costs? Is it lack of will? Bad luck? All of the above?
I think a lot of this is due to problems that date back a long time & stems from what was discussed here (http://forum.skyscraperpage.com/showthread.php?threadid=91973).

We took too long to really improve things in DT, which in turn made ppl write off the hood, which in turn has made businesses like hotels in the hood very weak for yrs & yrs.

I'm sure investors like Apollo are even more skittish about putting $$ into a major new hotel next to Staples because it will be located in a part of LA where lots of ppl, who are visiting the city, still don't want to stay.

[bobcat]

Conga to head to downtown L.A.
From a Times staff writer

November 23, 2005

The Conga Room, the mid-Wilshire haven for salsa and other Latin music, said Tuesday it will shut down next summer and then reopen in January 2007, at a downtown site across the street from Staples Center.

The new venue will be called the Conga Room Downtown and will be part of a development that will include ESPN Zone, Hilton Hotels and the Nokia Theatre.

The Conga Room has been operating at its current site, 5364 Wilshire Blvd., since February 1998.

[ThreeHundred]

Why is it so hard for a building to be built in downtown?

[citywatch]

^ When it comes to hotels there, because so many of them have been hurting for business for a long time, it becomes a dog eat dog situation. So the owner of the Bonaventure puts up a big stink, buttheads in LA (like at the Daily News) force everyone to pause & scratch their heads, &, most importantly, investors realize hotels in DT don't draw a lot of guests the way hotels elsewhere do, like the ones built in San Diego over the past several yrs.

[BrighamYen]

^ Well, because there's "nothing" to do. That's why you have to build it! Isn't this the most OBVIOUS thing on the planet?

Picture this: You have an orange grove out in Anaheim that's HUGE and sparse. There's no one around. No one goes to the orange grove unless they're picking oranges. BUT you build fucking Disneyland and it's now FUCKING PACKED!

Now come back to 2005 in Downtown LA. There's not a lot of things to do. There's a bunch of parking lots. WHY WOULD ANYONE COME? WHY WOULD people stay downtown when they can stay on the Westside where there's stuff to do? So to address that issue, you BUILD fucking THINGS TO DO!!!!!!!!! You build l.a. live and that's something for people to do! It's a lot better than standing in the middle of a parking lot filled with empty cars! WHY IS THIS SOOO HARD FOR PEOPLE TO UNDERSTAND?


You build the fucking Grove, and people come. You don't build it and they don't come. God this is SO ANNOYING!

[citywatch]

^ Now you know how I felt over 10 yrs ago when Zev Yaroslavsky, then a city councilman, complained about all the congestion that the Metropolis proj, planned for a site north of 8th St near Fig, or north of what's now Staples, would bring to the hood & voted against giving the owners a permit. The devlprs thereafter may thought that was a blessing in disguise, because demand for new office space eventually really tanked. However, that doesn't explain why ppl like Yaroslavsky, several yrs after voting on the Metropolis proj, then voted against future local funding of the subway system. Then there's former councilman Joel Wachs, who had a go-slow, no big deal tude about the Staples proj, & then there's ppl like Peter Zen, and so on, & so forth.

[katfam]

LosAngelesBeauty THANK YOU for saying that. I get so annoyed at peoples arguing over these things. You even take Hollywood and Highland...GO THERE ANY NIGHT and its PACKED. So what faliure is that? I can say i'm not one that likes the way it was built and the stores in it, but you can't please everybody on everything. That mall is for tourist and thats ok, they need something and Hollywood needed something so THANK YOU LosAngelesBeauty, WELL SAID :D :D :D

[LongBeachUrbanist]

None of this is mutually exclusive. Downtown needs LA Live. It also needs the Broadway Theater District. It also needs the Music Center/Grand Avenue. These are all aimed at different markets, and will bring life and vitality to Downtown.

But like LAB says, what is the alternative? Nothing to do, in what could be one of the most attractive downtown's in the world? Yeah, seen that done that.

I keep hearing about the chain stores, and how they will kill the downtown vibe. I say the chains will draw a certain group. The galleries will draw an artistic group. The family restaurants will bring families, and the night clubs will bring young people. A downtown is vibrant and appealing when it has something for everybody.

I do as much shopping and eating as I can in Downtown LA, and I'll gladly drop my $9 to see a movie Downtown, even if it is in a multiplex. Would I rather see a movie in the Historic Loew's State? Sure. But until that happens, I'd rather see a movie at the Regal Downtown multiplex than the local burban multiplex.

[BrighamYen]

I'd rather see a movie at the Regal Downtown multiplex than the local burban multiplex.


Tell that to Bernd :rolleyes:


^ No, that's not true. Most movie theatres draw their patrons from local communities, especially in this new age of screen saturation.

There are very few marquee houses that'll draw from other communities: the ArcLight, the Chinese, the El Cap and the Grove. Considering the proximity of these locations to westside buying power, it makes sense that these theatres would do as well as they do.

Theatrical exhibition is a flat industry. No growth. By building out this new theatre downtown, you're not going to increase the number of people going to the movies; instead, you'll be drawing customers from other local screens. Even the Grove, which is a destiantion theatre, took audiences from the existing Beverly Center and Beverly Connection theatres when it opened a few years back. The Beverly Connection is now shut down, and the Beverly Center will soon follow.

Since there really is no market for movies downtown, this new Regal will definitely struggle. Sure, if the population base explodes in the next decade, there might be a demand (assuming admissions stay constant, which is no guarantee), but certainly not now.

[citywatch]

Convention Center Hotel Faces Setback

Investor Pulls Out of $500 Million Project Over Rising Costs

by Kathryn Maese

Even as construction crews turn dirt on the $1.5 billion L.A. Live sports and entertainment district next to Staples Center, the project's centerpiece 1,100-room Convention Center hotel is in turmoil. Apollo Real Estate Advisors, which had agreed to finance the Hilton-operated hotel to the tune of $60 million, has backed out of the arrangement over escalating construction costs, according to sources close to the deal. The hotel's price tag, originally pegged at about $350 million, is now estimated at well over $500 million.

Despite the various political and financial elements coalescing to move the deal forward in recent months, sources said the rift between the two partners worsened over a ballooning budget and design changes. Anschutz Entertainment Group (AEG), which is developing L.A. Live, and Wolff Urban Development, the hotel's developer, would not comment on Apollo's departure. However, sources said both AEG and Wolff have been speaking with potential investors to put together another deal.

Councilwoman Jan Perry, whose Ninth District includes the project area, downplayed the pullout and said the hotel would move forward regardless of Apollo's decision. "I feel very confident that the real estate market in Downtown is extremely strong and there will be no difficulty in finding an equity partner to step into their shoes," Perry said.

Nonetheless, financing for the endeavor has been complex from the start. Earlier this year, following protracted negotiations, the city hammered out a concessions package that includes $20 million for infrastructure and fee waivers, and exemption from paying a 14% bed tax during the hotel's first 20 years of operation. The latter element could be worth more than $100 million. The Hilton Hotels Corp. is spending $30 million for the naming rights to the 55-story structure. Additionally, the 100 condos planned for the upper levels of the high-rise will help the developers, since each luxury unit could fetch well over $1 million.

But with last month's groundbreaking on the entertainment district, where the first stage is expected to open in 2007, the hotel takes on a greater sense of urgency. Since the beginning, a headquarters hotel was envisioned as the key component to the master plan. Tourism and city officials have long said Los Angeles needs a headquarters structure to attract more and larger events to the neighboring Convention Center. Already tourism officials have begun to dangle the future hotel, with its promised ballrooms, high-tech meeting space and proximity to L.A. Live, in front of event planners. Los Angeles has frequently lost out to cities such as San Diego, Anaheim and San Francisco, which have mega-hotels within walking distance of their convention centers and can host thousands of visitors.

Despite the breakdown in negotiations, Michael Collins, vice president of LA Inc, the city's convention and visitors bureau, said he is not worried about the impact on future bookings. "I think especially the large national associations who make site decisions and destination decisions every year are so familiar with this process," Collins said. "There isn't a city that hasn't found itself going through the birth pains of a property just like this.... Who the partners will be I don't know. I think though that most of the people we are looking at now will be there at the table at the end of the day. While it looks uncertain now it will sort itself out."

The process has been bumpy from its inception. In September, the Community Redevelopment Agency approved the project following a nearly 20-year planning process that included litigation, disputes over public subsidies and several stops and starts. Last month, it appeared that the city and developers removed the last hurdle to the deal. Peter Zen, the owner of the 1,354-room Westin Bonaventure hotel, agreed to drop threats of a lawsuit and a ballot referendum that were blocking the new facility from breaking ground. In exchange the hotelier received a green light to convert a portion of his rooms into condos. Zen had opposed the hotel on the grounds that using public money was unfair to other Downtown Los Angeles hotels.

The hotel was expected to break ground early next year, but Apollo's departure will likely delay that timeline. Perry would not speculate over how long it will take to find a new equity partner. But she noted that the city has made enough financial concessions to help the hotel move forward. "I think our job is done in terms of what we are contributing to the project," she said.

:brickwall:

[RBR]

As long as it gets built in the end, its all good.

[danparker276]

Construction of LA Live hasn't stopped because of this right?
Seems like this is just for the hotel.

60 mil compared to the total cost of 1.5 bil isn't that much. AEG could come up with that. The Clippers are gonna sell out their games soon.. Or just convert 60 more rooms to condos.

[colemonkee]

We'll find out on Monday. Most construction projects seem to have stopped for the Thanksgiving holiday, but should resume on Monday. If we see the hole getting bigger tomorrow, that'll be good news.

[L.A.native]

Well at least they started. As long as I see some signs of construction, im happy.

[citywatch]

I'm sure no one has to be concerned about current work on the LA Live site coming to a halt. The land now being occupied by equip & a construction crew is for the Nokia theater & possibly a part of the neighboring bldg for restaurants/stores. Even if Apollo had gone forward with its investment, I believe the hotel wasn't supposed to be an active part of the worksite until well after early or even mid 2006.

[colemonkee]

Correct. I drove by the site yesterday and noticed the hole was indeed bigger, and there was more equipment than the last time I viewed the site.

[citywatch]

I thought I'd archive this here as a good example of why everyone's patience at the pace of change should always look like this:

:rant:


In the Shadow of San Diego

As the City to the South Moves Ahead on Its Fifth Convention Center Hotel, L.A. Still Struggles for Number One

by Kathryn Maese

Downtown Los Angeles boasts a massive employee base, an increasing residential population, vibrant creative minds in the fashion and other industries, and some of the world's greatest cultural attractions. But when it comes to the convention industry, a smaller city to the south has Downtown green with envy. San Diego officials are nearing a deal to build the city's fifth major convention hotel, a 1,200-room Hilton that will complement the city's booming waterfront convention center and enable planners to book ever-larger events simultaneously. Financing is nearly secure for the $348 million tower. As a testament to the profit potential, the project is being entirely privately funded.

About 150 miles to the north, Los Angeles is still struggling to cobble together a deal for its first Convention Center headquarters hotel. It's a reality that has been further complicated by last month's departure of the project's major financial backer. With many major metropolitan cities pressing ahead on expansions and new facilities, why is L.A. behind the curve when it comes to building a mega-hotel to accommodate more convention business?

"It's a head scratcher," said Jack Kyser, chief economist at the Los Angeles Economic Development Corp. "Why can't we muster the will to build one, and yet in San Diego they are going all out? When you look at the occupancy rate in San Diego hotels, room rates are scoring good year-over-year increases, this despite the disarray in city finances causing them to cut back on Convention Center spending."

Los Angeles' planned hotel, a 1,100-room facility to be operated by the Hilton Hotel Corp., is envisioned as the anchor of a $1.5 billion sports and entertainment district called L.A. Live. Developer Anschutz Entertainment Group (AEG) brought on Wolff Urban Management to build the 55-story hotel. In turn, Wolff secured Apollo Real Estate Advisors earlier this year to help finance the $500 million venture. Late last month, however, the Century City-based Apollo backed out, citing ballooning costs. While not quite putting the project back to square one - city and business leaders believe they can secure another investor - it was a cruel reminder of the difficulties of such a deal. Downtown leaders have cited the need for a headquarters hotel for more than a decade.

Trying to Grow

Los Angeles is at least a decade behind San Diego's investment in its convention business and in its downtown revitalization, said Bruce Baltin, senior vice president for PKF Consulting, which tracks the hospitality industry. "L.A. today is where San Diego was at its first Convention Center hotel," Baltin said. "It didn't have the market strength to proceed back then. But L.A. is getting stronger as a market."

Much of that strength is coming from the housing market, which has reached dizzying heights with most entry-level condominiums fetching in excess of $600 a square foot. That housing has been coupled with cultural developments, notably the civic-backed redevelopment of Grand Avenue into an arts and retail hub, and the lauded L.A. Live project. The latter was a prime factor in getting the city to back the Convention Center hotel deal with a $100 million-plus concessions package. Without a major hotel, Los Angeles has lagged behind its competitors in a big way. LA Inc, the city's convention and visitors bureau, said it booked only two major conventions in the last fiscal year. San Diego notched 55. What's more, the city to the south contracted 71 events representing 914,717 hotel room nights for future years - a 34% increase over the 685,000 room nights that were booked in 2004. This represents $1.5 billion in future economic impact and $32 million in tax revenue for the city, according to the San Diego Convention & Visitors Bureau.

When the San Diego hotel breaks ground in early February, it will allow planners to boast that the downtown area will have approximately 6,500 rooms within a mile of the convention center. The two largest facilities are the 1,625-room Manchester Grand Hyatt San Diego and the 1,345-room San Diego Marriott Hotel & Marina. By contrast, Los Angeles has a much smaller supply of rooms in about 14 Downtown hotels - only 4,000 - and most are several blocks from the Convention Center. The owner of largest, the 1,354-room Westin Bonaventure, recently dropped a lawsuit trying to block the creation of a new headquarters hotel. That establishment is also an ample walk from the Convention Center.

Stiff Competition

San Diego currently turns away about 10 large conventions a year because it lacks rooms to accommodate visitors, according to the city's convention and visitors bureau. Once the new hotel comes online, it will mean added pressure for an already struggling Los Angeles market. Stiff competition for big events also comes from Anaheim, Las Vegas and San Francisco. "They are all out there competing for the same big business shows," Kyser said. "San Francisco has the charm, restaurants and retail. Anaheim has hotels and the Mouse. San Diego has its hotels, Gaslamp District and it's on the bay. Literally we have to try harder. We have to get the hotel up, get L.A. Live running and have other amenities to make it competitive."

As San Diego officials tell it, Los Angeles today is a minor threat when it comes to event business. When the new hotel opens, it will have an even bigger weapon in its arsenal - a labor union agreement that will allow hotel workers to organize. "This particular hotel is a major step forward for us," said Stephen Cushman, a Port District commissioner of the Unified Port of San Diego. "It's our first major union facility that will open up a tremendous number of conventions we've never been able to bid on before. There are over 50,000 delegates on an annual basis [seeking these hotels.]"

Cushman noted that despite L.A.'s plans to construct a new hotel, the city still suffers from geography and sprawl problems. Although Downtown has a vibrant business core, he called the Convention Center's location a "challenge," especially when compared to other activity-rich cities where everything is in walking distance and the airport is a short ride away. While spin is an expected part of the business, LA Inc Vice President Michael Collins disagrees with Cushman's assessment. He said there is a strong case to be made for Los Angeles, one that will become nearly bulletproof once the $1.5 billion sports and entertainment district opens its first phase in 2007 - the $85 million Nokia Theatre that will seat 7,100 and host approximately 110 events annually.

The glitzy project will unfold along Figueroa and 11th streets in the parking lot north of Staples Center. The district will include nearly a dozen restaurants, a 15-screen Regal Theater, an ESPN Zone, clubs and copious retail. In effect, L.A. Live will create an equivalent to San Diego's Gaslamp District, which has been a major engine in jump-starting that area's center city. "The single biggest inhibitor to the construction of the [Downtown Los Angeles] hotel was the fact that there wasn't anything around it," Collins said. "If you came to me in 1998 and said you want to build a hotel there, there certainly was a need. There were 34 conventions at that point and more demand than we could house.

"But until it could be built in the context of something like L.A. Live it would fail," he continued. "People don't like to have meetings in a hotel surrounded by parking lots. AEG has created a context."

News of the L.A. Live groundbreaking and the city's involvement has begun to spur sluggish booking activity for the L.A. Convention Center, Collins said. By the end of this fiscal year the city is poised to book more than 20 major events - already it has secured 15. Talk of a new headquarters hotel has also prompted a flurry of activity on the part of local hotel owners to refurbish their facilities. The most notable is the Wilshire Grand Hotel, which will undertake a $40 million renovation of its 900-room facility in time for the Hilton's projected opening in 2009. There has also been interest on the part of boutique hoteliers to capitalize on the impending changes and anticipated visitor interest. The Chetrit Group and New York-based WSA Management plan to turn the 1914 Embassy Hotel and Theater at 851 S. Grand Ave. into the 175-room Gansevoort West, a local version of a trendy establishment in Manhattan's Meatpacking District. The project has been estimated at $20 million.

Despite the momentum, the hotel deal is still without an equity partner and there is only a relatively small pool of investors that would be willing and able to jump into such a complex scenario, industry experts say. Indeed, San Diego's current hotel project had multiple equity sources back out before the project finally came together.

"All these hotel deals are very complicated and very hard to pull together and they take a lot of consensus," PKF Consulting's Baltin said. "Everyone has to be on the same page at the same time to get it done. At the same time the capital markets needs to come together. In San Diego, they have the advantage that the landowner down there is the Port of San Diego, which is quasi-public, to facilitate the process."

page 1, 12/12/2005

[BrighamYen]

^ Although it might not be as apparent right now, citywatch, the opening and very likely success of Ralphs will have much to do with even "pie-in-the-sky" projects like the Hilton Hotel. I know from first-hand experience what retailers want. They are not pioneers and want strong evidence (number$) that a larger resident population exists. So the success of Ralphs will prove to them that it does indeed exists, which we'll then see an influx of the many famous retailers we so desire for Downtown.

The concept can be applied to the financing of the hotel as well.

[danparker276]

Does all the rain help or hurt the digging? I guess it would soften the dirt, but does the rain halt the construction?

[deehrler]

Does all the rain help or hurt the digging? I guess it would soften the dirt, but does the rain halt the construction?

It is hard to get anyone to work when the sun is out in LA.

When it rains, Angelinos don't get out of bed. :)

[colemonkee]

Yeah, there was no constructin activity going on today at any of the sites I pass on a daily basis. I'm guessing that's partly due to today being a holiday for most people.

[LongBeachUrbanist]

I saw construction work progressing today at the Axis (http://www.standardpacifichomes.com/findhome/NeighborhoodComingSoon.aspx?NID=1357) development at Union Station. But from what I could see, most all other construction work had stopped due to the rain.

[colemonkee]

It's back on again. Every site I drove by this morning (Irvine Byrne Bldg, LA Live, Elleven, Galen Center, Galen-adjacent parking garage) was very active. Let's get 2006 rolling!

[ronson]

It is hard to get anyone to work when the sun is out in LA.

When it rains, Angelinos don't get out of bed. :)


:haha:

[LAMetroGuy]

Any news with regard to LA Live? I haven't heard anything for a while... hope the machines are out there pushing some dirt!

[citywatch]

Any news with regard to LA Live? I haven't heard anything for a while... hope the machines are out there pushing some dirt!
It seems like there's been a lull over the past few wks.

The new year started off with the whimper of that event in DT that was cancelled at the last minute, and it seems that ever since then a lot of the LA ppl at SSP have been quiet. For instance, not exactly a lot of new photo updates or postings from ppl who've been in the hood or have the latest news. The important thing, though, is there be a lot of things actually taking place in DT, regardless whether they're mentioned here or not. IOW, I wouldn't want a thousand new postings about the hood in this forum & almost nothing really going on in reality.

[colemonkee]

They're definitely pushing dirt around in there. The hole is getting bigger every day. I'm just pushing a lot of paper around at work, which is keeping me from doing a photo update. I have people in town this weekend, so you guys will have to wait until the following weekend for a photo update unless someone else wants to jump in.

But think on the "glass half full" side. When you finally do see an update, it will show a lot of progress (with the exception of Ralph's).

[Easy]

I was downtown yesterday, but didn't take any pictures of LA Live. It's just a big hole.

[cookiejarvis]

Saw this blurb in the L.A. Observed blog this morning:

Mayor Villaraigosa at 11:30 am will announce the new homeless estimate that is in the LAT (88,000 in the county) and at 2:30 unveils a new partner in the Convention Center hotel project.

[danparker276]

yeah 2:30 he announces it at staples. Good to see they found someone.

it's on curbed now too.
http://la.curbed.com/

hopefully it's Trump

[LAMetroGuy]

MAYOR ANTONIO VILLARAIGOSA ANNOUNCES SUPPORT OF MAJOR PARNTERSHIP (sic) THAT WILL ACCELERATE BUILDING OF CONVENTION HEADQUARTERS HOTEL, KEY COMPONENT OF LA LIVE! DOWNTOWN PROJECT

I am curious if by "accelerate" they mean:

1) Start building it sooner than it was already sopposed to start

2) Once construction starts... it will rise faster.

3) The original timeline will be shortend (start to finish).

hmmmmmmmmmmmmm :shrug:

[colemonkee]

^ Or they have hired a time-lapse video company to make it appear to up go really, really fast.

[RAlossi]

I wonder if the Daily News is going to report that the LA LIVE! developers have secured a new investment partner. They sure did pull a whole lot of the "See, if they can't secure all their investment partners, why should we give tax breaks blahblahblah..." Now that they have that last small $60 million partner, I'd surely love to see them say, "Okay, maybe we were wrong. This might be a good thing for the city ..."

Though I doubt that they will. That'd be too good for the Daily to do, and it would make them look bad.

[LAMetroGuy]

^ I wouldn't hold my breath on the Daily News... I choose to ignore their periodicals.

I am curious if Antonio will have Gail Goldberg (the new City Planning Director) at the press conference... I am curious as to her opion on the matter.

[RAlossi]

I really should stop reading the DN... it's gonna give me an ulcer. It's just that sometimes it does report on things that interest me, albeit with a more conservative (NIMBYish) attitude than I'm used to.

I could go on ad nauseam about the DN, but we've heard it all before.

[citywatch]

1) Start building it sooner than it was already sopposed to start
2) Once construction starts... it will rise faster.
3) The original timeline will be shortend (start to finish).If any or all of the above (or definitely 1 & 2) are true:

:banana:


it's on curbed now too.
http://la.curbed.com/Damn, that site indicates the Sunset Millenium proj (http://www.sunsetmillennium.com/siteplan.html), which I've been hoping would finally fill in one of the dead spots along the strip, is on the back burner.

[danparker276]

Any updates? It should have been announced by now.

[LAMetroGuy]

Any updates? It should have been announced by now.

I know.... somebody please update us!!! http://users.pandora.be/eforum/emoticons4u/obscene/eck28.gif

[LosAngelesSportsFan]

here you go

AEG, KB Home to Develop Convention Center Hotel

AEG and KB Home have partnered to finance and develop the 50-story Los Angeles Convention Center hotel that will be the key component of the new $2.5-billion L.A. Live sports and entertainment district near the Staples Center.

The hotel, budgeted at more than $600 million, will feature a minimum of 250 luxury residential condominiums, 1,100 luxury hotel rooms and over 70,000 square feet of hospitality and banqueting/ballroom space. It will be developed by AEG, a subsidiary of the Anschutz Corp., and KB Urban, a division of KB Home.

The partnership guarantees that the development of the property within L.A. Live will continue on-time and with no additional public funding required, said Timothy J. Leiweke, president and chief executive of AEG, in a statement.

The partnership replaces an original arrangement with Apollo Real Estate Advisors. Apollo agreed to step down to allow the new partnership to move forward.

In mid-November, negotiations between Apollo and AEG broke down despite a $277-million public financing package. Apollo, which was expected to provide about $70 million for the hotel, pulled out of the talks as hotel construction costs soared to more than $500 million.

In addition to agreeing to forgo as much as $257 million in room-tax revenues from the hotel over 25 years, the city’s Community Redevelopment Agency agreed to a $16 million below-market loan, and the city has authorized $4 million in fee waivers.

“The addition of luxury condominiums and a premier hotel to the project is essential to building a vibrant downtown where people will live, work and play in the heart of the city,” said KB Home chairman and Chief Executive Officer Bruce Karatz, in a statement.

Richard Ackerman, principal of Apollo, congratulated the new development team in a statement. “Our decision not to continue with the creation of this hotel will allow the project’s development to go on in the most expeditious manner,” he said. “We congratulate AEG for their persistence over these last five plus years and know that their determination will pay off.”

For now, Hilton Hotels Corp. will manage the property. In the coming weeks, the partnership will be re-evaluating which hotel operator is most appropriate for the project.

[LAMetroGuy]

Thanks LASF!!! Where did you find this???? This is great news and I was certain that it would happen this way. Like I said before, the remining amount was really immaterial compared to the entire cost of the project (only 7%)... so we are back on target and we will get our Convention Center Hotel.... nice!

[LosAngelesSportsFan]

no problem. it was on LABJ. now were ready to go!! lets get this damn hotel build ASAP.

[Ryohei]

This announcement was on the news with the mayor talking about it. They showed the progress that is being made. So far, all I saw was a big hole of dirt. So far so good, tho.

[bobcat]

The story says there are now over 250 condos planned, which is significantly higher than the 100 or so previously stated. I wonder how much, if any, the designs have changed.

[sugit]

That's really good news.

There was an article in the Sac Business Journal a few weeks back about KB Homes moving more into the urban development market, including mid/highrise development of housing with office, retail and hotel. They mentioned that LA would be the first market they enter, then Sac and SF after that.

This is a hell of a start for them and LA

[dragonsky]

Great News.

[citywatch]

LA Times, January 13, 2006

KB Home, Anschutz to Take Over Planned Hotel,
Condo Project Near Staples Center

By Annette Haddad, Times Staff Writer

KB Home and billionaire Philip Anschutz have agreed to take over development and ownership of a planned $600-million hotel and condominium project across from Staples Center, officials announced Thursday. The partnership all but ensures completion of what is seen as the linchpin in downtown Los Angeles' transformation into a viable entertainment and residential district. The project's proximity to the Los Angeles Convention Center also could spark a rebound in the city's convention and tourism business, which has suffered because of a dearth of hotel rooms and attractions compared with Las Vegas and Anaheim.

The project, however, attracted controversy because nearly half its cost — $290 million — will be financed by city subsidies and loans.

Anschutz's AEG Group and KB Home's newly formed KB Urban division replace developers Apollo Real Estate Advisors and Wolff Urban Management Inc., who were bought out of the project. "Our decision not to continue with the creation of this hotel will allow the project's development to go on in the most expeditious manner," said Richard Ackerman, an Apollo principal.

The 50-story structure will include two separate hotels with a combined 1,100 rooms, plus 250 luxury condo residences. It will be part of a $2.5-billion "sports-entertainment" hub, called L.A. Live, already under construction by Anschutz's AEG Group that also will feature restaurants, nightclubs and movie and performance theaters in addition to Staples Center. The area also features new or proposed high-rise office and condo towers, as well as retail establishments. Demand for space seems healthy, as rents for downtown housing and commercial space have risen faster than in many other parts of the city in recent months.

"We will have a massive impact on the rest of the downtown hotels as we become one of the great points of destinations for conventions and events," said Tim Lieweke, president and chief executive of Los Angeles-based AEG.

At 50 stories, the new structure also would become one of the tallest buildings downtown. The tallest, at 73 stories, is the US Bank Tower, formerly called the Library Tower.

:tup:

Lieweke said Anschutz, a longtime Denver resident who made his fortune in oil and gas, railroads, telecommunications and real estate, put up $100 million in capital to ensure that the hotel project got built. "We have to get this built so we can get the convention business turned around," Lieweke said, adding that AEG has no plans for other hotel projects.

Lew Wolff, a nationally recognized expert in urban development and head of Wolff Urban Management, will be an advisor to the hotel project.

The previous developers had been working with Hilton Hotels Corp. to operate the hotel. AEG and KB Home said they were re-evaluating the Hilton deal and were also talking with other hotel operators to carry out their plan to have two hotel brands — offering mid-priced and luxury accommodations — within the same building.

Atop the structure will be 250 high-end condos with sweeping city views, to be built by Los Angeles-based KB Home. The nation's fifth-largest home builder, known for entry-level housing, has been slowly moving into the luxury market by building million-dollar single-family houses and townhomes. The condos will be the company's first high-end condo project and its first hotel-related venture. KB Home and AEG "have the attitude of moving forward well and competently," said Bruce Karatz, chairman and chief executive of KB Home. "We've got all the elements to make this an extremely successful development — for us, for our partners, for the city and for all members of our city,"

To form its partnership with AEG, KB Home withdrew from a previously announced proposal to build a twin-tower, 700-unit condo project two blocks away with rival Lennar Corp., said Jeffrey Gault, president of KB Urban. Miami-based Lennar declined to comment on Thursday's announcement. LNR Property Corp., a Lennar spinoff, has agreed to buy the parcel on which the project was to be built in a deal expected to close next month. But it was unclear whether the Lennar condo project would go forward in its originally proposed form.

Building a 1,000-plus-room hotel within walking distance of the convention center has been on the minds of city planners and developers for at least three decades. It was only after the development of Staples Center in 1999 that plans for a hotel started to crystallize. "This is another symbol of what the downtown renaissance is providing the city — millions in tax revenues and thousands of jobs," said Carol Schatz, president of the Central City Assn., a nonprofit business advocacy organization.

The proposed hotel attracted controversy last year when its developers — faced with rising construction costs — asked the Los Angeles City Council to approve as much as $290 million in subsidies. That support was opposed by owners and operators of existing downtown hotels including the landmark Westin Bonaventure, the city's largest hotel with 1,368 rooms, which threatened to put the subsidy issue before city voters through a referendum.

The council in September approved the subsidies, which will come through rebates of hotel taxes collected by the city. Since then, the city and the Bonaventure have worked out their differences, L.A. Mayor Antonio Villaraigosa said during a news conference Thursday.

:) :yes::)

[Easy]

To form its partnership with AEG, KB Home withdrew from a previously announced proposal to build a twin-tower, 700-unit condo project two blocks away with rival Lennar Corp., said Jeffrey Gault, president of KB Urban. Miami-based Lennar declined to comment on Thursday's announcement. LNR Property Corp., a Lennar spinoff, has agreed to buy the parcel on which the project was to be built in a deal expected to close next month. But it was unclear whether the Lennar condo project would go forward in its originally proposed form.

I'll be very interested to see what happens here. I assume that they will look for a new partner since they decided to bring in KB the first time. Hopefully, it won't be scaled back or delayed too long.

[JRinSoCal]

This is great news! But did we lose 5 stories or what? It used to be 55 wasn't it?

[colemonkee]

This doesn't make sense. They've lost 5 stories, yet have added 140 condo units, without decreasing the amount of hotel rooms. I call shenanigans on the LA Times numbers. Something just doesn't add up.

And now Lennar is left out to dry with their project. Hopefully they can do it themselves or find another partner quickly.

[JRinSoCal]

^Yeah, something's not right there.

[MapGoulet]

My uncle was a DC cop. In all his years on the force there was not one case he worked on that the media didn't screw up in one way or another. However, we're talking about building details here, not homocide.

I would consider discrepancies in floor count, number of units, and percentage of use to be minor. I would be much more concerned about larger, qualitative screw-ups that show up in the paper.

Another thing about the media -- no one reporter gets all the info and often their various sources contradict each other. So I wouldn't get too hard on the Times for this. I'd be more concerned about slant and material omissions, in general.

Regardless, this is exciting news! I think it's great that a homegrown Fortune 500 company is involved. KB has deep pockets and is less likely to renig.

By the way, I was at the press conference yesterday. The view from the top of the Staples Center is AMAZING! There is a huge hole in the ground almost two stories deep now through the entire Phase I parcel. If I had better resolution on my dinky camera phone I would have posted a shot or two.

Viva LA!
:cheers:

[MapGoulet]

I spoke with someone from KB Urban. She said the new division is currently entirely housed in the headquarters office tower in Westwood. There are no immediate plans to open up a satellite office.

Wouldn't it be great if some of these new urban divisions of Lennar, KB and John Laing Homes would set up their urban offices in downtown LA? Seems like it would be good to be closer to the projects. And having their own business in DT should raise the value of downtown and thus the value of their own projects! But I'm sure they have their own reasons.

[danparker276]

They said the new hotel will be L shaped now, so there are the same number of rooms, but more condos.

[ThreeHundred]

I have a feeling that this is going to be a wide building. Like a 50 story Cal Trans Building.

[cookiejarvis]

And what L.A. Live discussion would be complete without Joel Kotkin weighing in on the subject ?

Hotel plan back to life
Daily News
1/13/2006
City keeps subsidy at $300 mil
By Dan Laidman and Rick Orlov, Staff Writers

In a deal aimed at salvaging the luxury hotel project critical to efforts to turn around the ailing Los Angeles Convention Center, developers announced Thursday that they will partner with KB Home to build a skyscraper touted as the linchpin of the $4.2 billion l.a. live complex.

KB Home, co-founded by billionaire philanthropist and L.A. power broker Eli Broad, will replace Apollo Real Estate Advisors as the financial partner for AEG, which recently broke ground on the l.a. live sports-and-entertainment complex near Staples Center.

The revamped hotel plan features design changes and additional condominiums to offset projected construction costs that have soared from $450 million to more than $600 million. Despite the higher costs, city government has not sweetened its agreement to provide nearly $300 million in public financing, which includes a loan, tax breaks and fee waivers.

"We think this is going to be one of the landmark buildings in all of Southern California," KB Home Chairman and CEO Bruce Karatz said at a press conference on a Staples Center balcony overlooking the construction site.

AEG President and CEO Timothy Leiweke said the two companies would be 50-50 partners.

"I hope this will be the last press conference we ever have to do," he said. "No more speculation, no more false starts, no more people saying it's not going to happen."

City leaders were optimistic, with Councilwoman Jan Perry touting the "strong, strong, strong partnership" of the two corporate giants and Mayor Antonio Villaraigosa referring to their relationship as a good marriage.

The Daily News reported in November that Apollo had pulled out of negotiations with AEG to provide about $60 million for a proposed 56-story, 1,100-room Hilton Hotel.

Leiweke said Thursday that Apollo's stake had been bought out, although he declined to provide details.

"It wasn't a disagreement as to the potential, but maybe a difference of opinion about how to get it done," he said.

Richard Ackerman, principal of Apollo, issued a written statement: "Our decision not to continue with the creation of this hotel will allow the project's development to go on in the most expeditious manner."

Co-developer Lew Wolff, who also owns the Oakland A's baseball team, will remain involved in the project but not as an investor. He said he is advising the developers and not committing any money, although that could change at some point.

The developers now plan a 50-story, L-shape building, with 50 to 100 more condominium homes than in the original design. Sales of the 250 luxury residential units will help offset the rising construction costs, Leiweke said.

The hotel is still intended to have 1,100 rooms and more than 70,000 square feet of hospitality, banquet and ballroom space, developers said.

A hotel operator has yet to be chosen, although the developers said they are negotiating with Hilton, Hyatt, Marriott and Westin, among other companies.

For KB Home, one of the nation's largest home builders, the venture is both a new one in the hotel business and an extension of recent efforts in developing high-rise buildings.

The firm was already part of the plans for the area, partnering with Lennar Properties to develop other residential units in the l.a. live complex.

While Broad was a founder of KB Home and has been deeply involved in the $1.8 billion Grand Avenue project in the Civic Center area of downtown, he is not involved in the Convention Center hotel.

The hotel has been considered the centerpiece of l.a. live, both from a city standpoint in trying to lure business to the Convention Center and as a key component of the entertainment-retail complex.

The city's Community Redevelopment Agency had agreed to commit a $16 million loan
for the project, while city government has agreed to waive upward of $270 million in hotel bed taxes, along with $4 million in fees.

The city averted a lawsuit over the tax waivers when it agreed to allow the Bonaventure Hotel to convert 400 of its rooms to condominiums in order to be able to compete in the downtown market.

Villaraigosa, who spent a week brokering that deal, said he sees the Convention Center hotel as the linchpin of downtown's revitalization.

The need for such a complex was brought home New Year's Eve, the mayor said, when TV viewers watched celebrations in New York and other far-flung cities but not Los Angeles, supposed to be the entertainment capital of the world.

"This partnership will ensure that l.a. live and the hotel not only (will) come to fruition but will make Los Angeles the entertainment capital of the West Coast," Villaraigosa said. "Furthermore, the Convention Center headquarters hotel is absolutely necessary if Los Angeles wants to have a convention center that is able to compete with other convention centers in the region."

The mayor has called the Convention Center, which loses money and costs the city millions of dollars in debt service, a "big white elephant."

There has been some criticism of the development, though, both from opponents of the public-financing package and urban theorists such as Joel Kotkin, senior fellow at the New American Foundation.

"I keep asking: Why are we building this hotel?" Kotkin said. "The attraction of Los Angeles is in its beaches; yet they are investing all this effort in an area of the city that I don't think most people want to be in."

Kotkin also said he believes the convention business is cyclical. In addition, he said, it is particularly difficult for Los Angeles to compete with a city like Las Vegas for convention business.

Officials with L.A. Inc., which books conventions for Los Angeles, said city officials' support for a Convention Center hotel already has begun to pay dividends, and that there has been an upswing in convention bookings for the next several years.

The group said the city hosted nine conventions in 2004, saw that jump to 15 this past year and already has booked 24 conventions over the next several years.

The l.a. live project is the second phase of what AEG and its owner, Philip Anschutz, agreed to when they won the right to build Staples Center. Part of that agreement called for development of a commercial retail-entertainment complex on the land across from the arena.

Construction of theaters - for both live entertainment and movies - is planned as part of l.a. live, in addition to the hotel. Also, ESPN has announced it will open a broadcast studio as part of the complex.

Dan Laidman, (213) 978-0390 dan.laidman@dailynews.com

Rick Orlov, (213) 978-0390 rick.orlov@dailynews.com

[latennisguy]

"I keep asking: Why are we building this hotel?" Kotkin said. "The attraction of Los Angeles is in its beaches; yet they are investing all this effort in an area of the city that I don't think most people want to be in."



Who is this dumbass? Most people don't want to be in downtown? :hell: That's a very ignorant remark.

[LongBeachUrbanist]

To form its partnership with AEG, KB Home withdrew from a previously announced proposal to build a twin-tower, 700-unit condo project two blocks away with rival Lennar Corp., said Jeffrey Gault, president of KB Urban. Miami-based Lennar declined to comment on Thursday's announcement. LNR Property Corp., a Lennar spinoff, has agreed to buy the parcel on which the project was to be built in a deal expected to close next month. But it was unclear whether the Lennar condo project would go forward in its originally proposed form.

I'll be very interested to see what happens here. I assume that they will look for a new partner since they decided to bring in KB the first time. Hopefully, it won't be scaled back or delayed too long.

Yeah, I hate the idea of robbing Peter to pay Paul, so to speak. The hotel is much more important immediately, IMO, but the way I see it, the Lennar project has just suffered a major setback.

[danparker276]

Yeah, the hotel is the most important thing. I could care less if they put the Lennar towers there. There's no way that piece of land is going to be an empty lot. I'd probably like it better if they put a 10 story shopping mall or something there.

[citywatch]

In terms of new housing in the hood, a lot depends on the level of demand over the next 12 months, or the next 2 or 3 yrs or so. If the response to Elleven remains common well into the future, then the biggest problem facing the devlprs of a proj like Lennar will be picking & choosing from all the partners who'd want to join with them.

However, if too much of the demand in DT has been following in the footsteps of what's taken place in Shanghai, China, where the housing mkt that was a booming just a few months ago has suddenly turned cold, because too many ppl were buying units not to live in but to resell as speculators, then we're looking at rough waters ahead. And it was only about 5 yrs ago that devlprs said highrise condos weren't possible in DT because the psf rate of return, or profit margin, was too low.

[ocman]

Yeah, I hate the idea of robbing Peter to pay Paul, so to speak. The hotel is much more important immediately, IMO, but the way I see it, the Lennar project has just suffered a major setback.

Unless the picture got it wrong, the lennar project doesnt look like twin towers to me. 3 different sized towers in fact, with the tallest being 40 stories. It would be a complete shame if this project gets set back or shelved. It's right across from Staples center and complements it nicely with a significant amount of ground space area set for retail. And from the pic, it has a lot of potential to add a significant amount to the streetscape, in ways even more so that the Staples Complex. Why did KB step aside? I wonder if KB stepped aside voluntarily or if they were pushed by AEG. If they were pushed, then AEG is pulling the same competitive crap that the Bonaventure was pulling on them where it fears neighbors as competition rather than complements. And if that's the case, then we should fear that AEG has intentions to turn the project even more so into something like the "The Grove" which adds nothing to the area but traps it's pedestrians in a closed off shopping prison for itself.

http://img.photobucket.com/albums/v600/rpulido/img4004sm8ae.jpg

[sflacali]

Hotel plan back to life
City keeps subsidy at $300 mil
By Dan Laidman and Rick Orlov, Staff Writers

In a deal aimed at salvaging the luxury hotel project critical to efforts to turn around the ailing Los Angeles Convention Center, developers announced Thursday that they will partner with KB Home to build a skyscraper touted as the linchpin of the $4.2 billion l.a. live complex.
KB Home, co-founded by billionaire philanthropist and L.A. power broker Eli Broad, will replace Apollo Real Estate Advisors as the financial partner for AEG, which recently broke ground on the l.a. live sports-and-entertainment complex near Staples Center.

The revamped hotel plan features design changes and additional condominiums to offset projected construction costs that have soared from $450 million to more than $600 million. Despite the higher costs, city government has not sweetened its agreement to provide nearly $300 million in public financing, which includes a loan, tax breaks and fee waivers.

"We think this is going to be one of the landmark buildings in all of Southern California," KB Home Chairman and CEO Bruce Karatz said at a press conference on a Staples Center balcony overlooking the construction site.

AEG President and CEO Timothy Leiweke said the two companies would be 50-50 partners.

"I hope this will be the last press conference we ever have to do," he said. "No more speculation, no more false starts, no more people saying it's not going to happen."

City leaders were optimistic, with Councilwoman Jan Perry touting the "strong, strong, strong partnership" of the two corporate giants and Mayor Antonio Villaraigosa referring to their relationship as a good marriage.

The Daily News reported in November that Apollo had pulled out of negotiations with AEG to provide about $60 million for a proposed 56-story, 1,100-room Hilton Hotel.

Leiweke said Thursday that Apollo's stake had been bought out, although he declined to provide details.

"It wasn't a disagreement as to the potential, but maybe a difference of opinion about how to get it done," he said.

Richard Ackerman, principal of Apollo, issued a written statement: "Our decision not to continue with the creation of this hotel will allow the project's development to go on in the most expeditious manner."

Co-developer Lew Wolff, who also owns the Oakland A's baseball team, will remain involved in the project but not as an investor. He said he is advising the developers and not committing any money, although that could change at some point.

The developers now plan a 50-story, L-shape building, with 50 to 100 more condominium homes than in the original design. Sales of the 250 luxury residential units will help offset the rising construction costs, Leiweke said.

The hotel is still intended to have 1,100 rooms and more than 70,000 square feet of hospitality, banquet and ballroom space, developers said.

A hotel operator has yet to be chosen, although the developers said they are negotiating with Hilton, Hyatt, Marriott and Westin, among other companies.

For KB Home, one of the nation's largest home builders, the venture is both a new one in the hotel business and an extension of recent efforts in developing high-rise buildings.

The firm was already part of the plans for the area, partnering with Lennar Properties to develop other residential units in the l.a. live complex.

While Broad was a founder of KB Home and has been deeply involved in the $1.8 billion Grand Avenue project in the Civic Center area of downtown, he is not involved in the Convention Center hotel.

The hotel has been considered the centerpiece of l.a. live, both from a city standpoint in trying to lure business to the Convention Center and as a key component of the entertainment-retail complex.

The city's Community Redevelopment Agency had agreed to commit a $16 million loan for the project, while city government has agreed to waive upward of $270 million in hotel bed taxes, along with $4 million in fees.

The city averted a lawsuit over the tax waivers when it agreed to allow the Bonaventure Hotel to convert 400 of its rooms to condominiums in order to be able to compete in the downtown market.

Villaraigosa, who spent a week brokering that deal, said he sees the Convention Center hotel as the linchpin of downtown's revitalization.

The need for such a complex was brought home New Year's Eve, the mayor said, when TV viewers watched celebrations in New York and other far-flung cities but not Los Angeles, supposed to be the entertainment capital of the world.

"This partnership will ensure that l.a. live and the hotel not only (will) come to fruition but will make Los Angeles the entertainment capital of the West Coast," Villaraigosa said. "Furthermore, the Convention Center headquarters hotel is absolutely necessary if Los Angeles wants to have a convention center that is able to compete with other convention centers in the region."

The mayor has called the Convention Center, which loses money and costs the city millions of dollars in debt service, a "big white elephant."

There has been some criticism of the development, though, both from opponents of the public-financing package and urban theorists such as Joel Kotkin, senior fellow at the New American Foundation.

"I keep asking: Why are we building this hotel?" Kotkin said. "The attraction of Los Angeles is in its beaches; yet they are investing all this effort in an area of the city that I don't think most people want to be in."

Kotkin also said he believes the convention business is cyclical. In addition, he said, it is particularly difficult for Los Angeles to compete with a city like Las Vegas for convention business.

Officials with L.A. Inc., which books conventions for Los Angeles, said city officials' support for a Convention Center hotel already has begun to pay dividends, and that there has been an upswing in convention bookings for the next several years.

The group said the city hosted nine conventions in 2004, saw that jump to 15 this past year and already has booked 24 conventions over the next several years.

The l.a. live project is the second phase of what AEG and its owner, Philip Anschutz, agreed to when they won the right to build Staples Center. Part of that agreement called for development of a commercial retail-entertainment complex on the land across from the arena.

Construction of theaters - for both live entertainment and movies - is planned as part of l.a. live, in addition to the hotel. Also, ESPN has announced it will open a broadcast studio as part of the complex.


TAKEN FROM: http://www.dailynews.com/news/ci_3397738

[Easy]

^If you would have looked back 5 or 6 posts, you would have seen that was already posted.

[Easy]

Unless the picture got it wrong, the lennar project doesnt look like twin towers to me.

That was before KB joined. The project was reworked to 2 towers. Check the DT rundown thread from the end of October.

[DJM19]

The real problem with this is that KB homes will no longer be doing the twin towers because they are investing in this. Which may mean we will get something lesser for that parcel.

[danparker276]

The real problem with this is that KB homes will no longer be doing the twin towers because they are investing in this. Which may mean we will get something lesser for that parcel.

That land is to valuable to get lesser. If they don't building something big there, they'll sell the land so someone else can. They won't make money if they build a 5 story apt complex.

[LA rehab]

The real problem with this is that KB homes will no longer be doing the twin towers because they are investing in this. Which may mean we will get something lesser for that parcel.

KB is a publically traded firm. They ought to have the capitalization to pull both of these off.

The "B" in KB is Broad, as in Eli Broad. That is likely a good thing.

[colemonkee]

^ Eli Broad hasn't been involved in KB Homes for many many years. Hence the change in name from Kauffman & Broad Home Corporation to KB Homes.

After he left KB Homes, he bought and renamed SunAmerica, which he sold to AIG in '98. Now he's focused solely on philanthopy, arts, and of course Grand Avenue and other civic concerns.

[Infestma]

Since the new flagship for the Hilton west coast hotel will be the LA Live one, is there any chance that the Golden Globe will move from the Beverly Hilton to LA Live Nokia theatre. Any ideas, rumors, or news about this?

[danparker276]

Many award shows will be moved to downtown.

[BrighamYen]

^ I sure hope so! :D

[citywatch]

Since the new flagship for the Hilton west coast hotel will be the LA Live one, is there any chance that the Golden Globe will move from the Beverly Hilton to LA Live Nokia theatre. I would guess not, because that event has been in BH for a long time & is famous among celebs for its party & dinner atmosphere, which would be tough to carry over if held in a large, traditional theater or arena.

I would think the owners of the Shrine must be nervous because they, along with the city of Pasadena & its civic auditorium, stand to lose some bookings. Ironic too because the Shrine has been upgraded over the past few yrs, & the new USC apt proj next door to it & the Galen Ctr across the street should make the hood nicer around 2008.

[LAMetroGuy]

Hilton Launches New Luxury Line

Hilton Hotels Corp. launched a new luxury hotel line Tuesday called “The Waldorf=Astoria Collection” that builds on the cachet of the renowned New York hotel.

The new line from the Beverly Hills-based hotelier includes the Hilton-owned Waldorf=Astoria in New York City as well as three owned by Orlando-based real estate investment trust CNL Hotels & Resorts Inc.: Grand Wailea Resort Hotel & Spa on Maui, Arizona Biltmore Resort & Spa in Phoenix and La Quinta Resort & Club in La Quinta.

Hilton announced Tuesday that it acquired the three management contracts from La Quinta-based KSL Resorts, which currently manages the hotels. Terms of the deal, which is expected to close on Jan.31, were not disclosed.

Hilton will add to the new line by re-branding some of its existing hotels, building new hotels and by seeking out management contracts for hotels in select markets. The hotels chosen for the designation of The Waldorf=Astoria Collection will be based on architectural significance, unique decor and original artwork, historic or landmark status and a reputation for product and service excellence.

The Waldorf=Astoria Collection will debut on Jan. 31.

Hilton’s move to increase its presence in the luxury market puts it on the level to compete with Starwood Hotels & Resorts’ Le Meridien and St. Regis hotels, and Marriott International Inc.’s Ritz-Carlton chain. The hotel company, heavy on business travel brands, had already been actively growing its upscale segment by expanding its Conrad line under a joint venture with international arm Hilton Group PLC, which it recently agreed to acquire.

[LAMetroGuy]

hmmmm, come to think of it... maybe Hilton will change the Hilton Checkers to the Los Angeles Waldorf Astoria?

http://los-angeles-la-hotel.com/Hilton-Los-Angeles/Hilton-Checkers/Hilton-Checkers.jpg

[BrighamYen]

Great info LAMG! Thanks for posting this.

[LA rehab]

^ Eli Broad hasn't been involved in KB Homes for many many years. Hence the change in name from Kauffman & Broad Home Corporation to KB Homes.

After he left KB Homes, he bought and renamed SunAmerica, which he sold to AIG in '98. Now he's focused solely on philanthopy, arts, and of course Grand Avenue and other civic concerns.

Does he hold any stock? If so how much? A lot of execs will leave companies they've helped create or run but still hold on to sizable equity- they can still have some influence as major shareholders or owners of trusts or corporations controlling those shares. I'd be inclined to follow the money and see where it leads just for kicks and giggles; assuming someone from that anti-LA rag which will go unmentioned here isn't already doing that.

[danparker276]

doesn't look like it:
MAJOR DIRECT HOLDERS (FORMS 3 & 4)

Holder Shares Reported
KARATZ, BRUCE N/A 21-Oct-05
MEZGER, JEFFREY T. 349,208 21-Oct-05
PRAW, ALBERT Z. 184,384 19-Dec-05
GOODWIN, JOHN E. 161,266 21-Oct-05
MOSS, JAY 0 21-Oct-05




http://finance.yahoo.com/q/mh?s=KBH

[tujunga]

[/b]I would guess not, because that event has been in BH for a long time & is famous among celebs for its party & dinner atmosphere, which would be tough to carry over if held in a large, traditional theater or arena.

I would think the owners of the Shrine must be nervous because they, along with the city of Pasadena & its civic auditorium, stand to lose some bookings. Ironic too because the Shrine has been upgraded over the past few yrs, & the new USC apt proj next door to it & the Galen Ctr across the street should make the hood nicer around 2008.

IT's great that there will be many new places for events like the Golden globe to be held because New York has been trying to steel events like the Golden Globe from Los Angeles. After 911 they wanted the Acadamy Awards to be held in NY. LA said NO!

[danparker276]

Walked by LA live yesterday, they've dug around 2 stories deep over most of the area. Does anyone know if they plan any underground parking or how many levels it will go down. Or are they close to putting the foundation in?

[Easy]

Previously reported on this thread:

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.

[citywatch]

Convention Center Hotel Hits $625 Million

KB Homes to Partner With AEG on Stalled South Park Tower

by Kathryn Maese

Homebuilder KB Home signed on last week to be a partner in the planned 1,100-room Convention Center hotel next to Staples Center. The announcement jumpstarted a deal that had stalled late last year when the previous financial partner suddenly backed out. Overlooking the construction site where the 50-story hotel and condo tower will rise, city leaders and developer Anschutz Entertainment Group (AEG) last Thursday said KB Urban - a division of the parent company - will help build and finance the structure that is now expected to cost $625 million, according to AEG officials. "The partnership of KB Home and AEG are committed today to be 50-50 partners on the ownership and development of the hotel," said AEG President and Chief Executive Tim Leiweke. "There will be no more speculation, no more false starts, no more people saying it will never happen."

The project is expected to be finished in three years, Leiweke said. To cut down on costs, ground is already being turned for the hotel's foundation. That is happening concurrently with the L.A. Live sports and entertainment district, which is on schedule to open its first phase in 2007. L.A. Live will frame the hotel with restaurants, retail and nightlife. The headquarters hotel has been redesigned to include an L-shaped structure at the base of the property. That will hold 900 rooms while 200 luxury rooms will be located in the tower.

The original deal called for Wolff Urban Management and Apollo Real Estate Advisors to work on a hotel to be operated by Hilton Hotels Corp. Now, Leiweke said AEG and KB Home are negotiating with four would-be operators: Hilton, Hyatt, Marriott and Westin. A final selection is expected within two months. The biggest change in plans comes in the number of condominiums planned for the tower's upper floors; instead of the original 100, the project will now feature 250 high-end units.

The residential element fits with KB Urban's new strategy to build in dense urban settings. The group opened an office in Downtown Los Angeles last October, at the same time it announced plans to partner with mega-builder Lennar Corp. on two high-rise residential towers across the street from Staples Center. KB's involvement in that project has since been withdrawn. "We think this [hotel] is going to be one of the landmark buildings in Southern California," said KB Home Chairman and Chief Executive Bruce Karatz. "I think we've got all the elements to make this an extremely successful development."

In November Apollo Real Estate Advisors, which had agreed to finance the Hilton-operated hotel with $60 million, backed out of the arrangement over escalating costs. The hotel's price had been pegged at about $450 million, but has risen sharply in the last year due to soaring costs for raw materials. Lew Wolff of Wolff Urban Management, which was part of the original deal, will act as an advisor on the hotel project.

The hotel has long been envisioned as the centerpiece of the six-block L.A. Live project unfolding around Staples Center. Tourism officials say the headquarters hotel will enable them to shore up lagging convention business and compete with other big convention cities for high-profile events. "We're going to give you the ammunition to win the war," Leiweke told officials from the city's convention and visitors bureau. "We're going to give you the environment you need to be successful and we're going to have a massive impact on the rest of the Downtown hotels."

L.A. Live, which broke ground Sept. 15, is being built as a magnet for locals, conventioneers and tourists. The first phase will include the 7,100-seat Nokia Theatre, which will host live events. The restaurants, clubs, cineplex, retail and other entertainment venues will open in spring 2008, with the hotel and condos coming online the following year.

"This hole is emblematic of the commitment of AEG," said Mayor Antonio Villaraigosa, pointing to the construction site below. "From the very beginning, when the deal fell through, one could have argued that the construction should have stopped. But they were committed and they kept on building."

page 1, 1/16/2006

[ThreeHundred]

This thing better be LA's 'Burj al Arab' seeing how expensive it's becoming. But good article nonetheless.

[latennisguy]

BTW, how much IS the Burj Al Arab costing? The cost to build this hotel seems very expensive....how do other project of the same "stature" compare?

[LAMetroGuy]

That will hold 900 rooms while 200 luxury rooms will be located in the tower.

The biggest change in plans comes in the number of condominiums planned for the tower's upper floors; instead of the original 100, the project will now feature 250 high-end units.


confused :shrug:

[colemonkee]

^ I'm right there with you. I'm waiting for a revised design.

latetennisguy, the Burj Al Arab has been finished for years. It's the crazy sail-looking building built out on a man made island with the structure exposed on the outside. I think the comparison was made by ThreeHundred because the Burj Al Arab is a ridicuously oppulent and exclusive hotel that's iconic for the city of Dubai. I think he's saying that with how much this hotel is costing, the Convention Center Hotel should be LA's version of it (ThreeHundred, if I'm off, feel free to send lots of nasty smileys in my direction).

I don't think it will turn out to be LA's Burj Al Arab. I think this is just a reflection of the current costs of doing construction in LA.