What's the deal with LA Live?

[colemonkee]

^You're right, it's not a big delay in the grand scheme of things, but I would bet a lot of money that some of the larger condo towers in South Park (Hanover Tower, Glass Tower, the Venture project, etc.) are waiting for LA Live to at least break ground before they start marketing, or in the case of the Venture project, seriously pursue entitlements, etc.

I know that CIM Group is using LA Live as a marketing tool, and with some of these towers, they are probably waiting for actual ground to be broken to make the investment less of a risk. If that really is the case, that means waiting more time for these other towers to start marketing, breaking ground, etc.

I'm still optimistic, just frustrated that LA Live isn't picking up momentum, given the current climate.

[citywatch]

Originally Posted by bobcat

haha. You beat me to the punch. But I wish there was an icon that shows a round head being pounded with a mallet, because wasn't the date of early summer 05 for LA Live's start up already revised from another predicted date of spring 05? And I may be wrong about this, but I believe the spring 05 date, in turn, was pushed forward from an even earlier estimate of groundbreaking occurring sometime in late 2004.

This is why I keep raising the issue of demand for various types of space, for office or hotel or retail, because I bet if the hood had a long record of pent up need for such projs, the devlpr of LA Live, if anything, would have been sued by contractors (& not the owner of a rival hotel) for making everyone work too fast because of prospective or finalized tenants & customers yelling, when the hell can we move in!!!??, when the hell can we book a room!!???, when the hell can we haul our offices over there??!!, when the hell can we eat or shop there??!!!

[LongBeachUrbanist]

^ But there isn't pent-up demand for hotel or retail. That's just reality citywatch. That's the world we have to live in.



The real benefit of L.A. Live is to create a new focal point of excitement in Downtown, and that's what it's doing. Along with Staples Center, the prospect of L.A. Live has gotten developers and potential residents interested in Downtown, and thie result is a slew of towers that are in the process of being planned, approved and constructed.

[cookiejarvis]

I think part of the delay also has to do with all the street/sidewalk work they're doing on Figueroa and 12th St.

[bobcat]

If DTLA had a pentup demand for hotel and office space, it's likely something like LA Live would have been built years ago. We are now creating a vibrant downtown practically from scratch. It's silly to be constantly playing these woulda, coulda, shoulda, games under the circumstances.

[citywatch]

Originally Posted by bobcat

It's silly to be constantly playing these woulda, coulda, shoulda, games under the circumstances.

I think it was a lack of enough second guessing that screwed up the revival of DT to begin with. I'm referring to the thinking of (& I've mentioned this before) the former director of the CRA, who in the early 1990s claimed efforts to turn around DT no longer had to be big & demanding. IOW, he had a philosophy that everything was good enough, or that things were perfectly hunky dory.

I know his type of tude became more noticeable after the 92 riots, when some ppl thought the city had wasted its time, $$$ & resources on DT. One writer for the LA Times even said we weren't a DT type of ppl or a DT type of city. I think that person was even more comfortable with her opinion because she ignored or couldn't give a crap about the wouldas, couldas, shouldas. In her mind, a hood like DT LA was lame, &, anyway, because most ppl preferred the burbs or places like SaMo, or other cities like NY or SF, we should just stop worrying about DT & accept the hood for what it was.

[LongBeachUrbanist]

^ Remember the CRA was originally created to "revitalize neighborhoods" (note the name "Community Redevelopment Agency"). That was the CRA's mandate when it started its work in Downtown 50 years ago. The debate isn't whether things were "hunky-dory" downtown, but whether the CRA's focus should have been on investing in skyscrapers in DTLA, or on community housing in South LA.

I do think the CRA shouldn't have been investing so heavily in office development. With the benefit of hindsight, we can all see that the office market in DTLA was way overbuilt in the 90's, whereas the community/residential aspect was seriously neglected. This was largely due to the CRA's focus being in the wrong place.

Believe me, I'm all for office towers, but I would prefer a healthy downtown that attracts private investment to the miserable downtown of the 90's with gleaming towers and no residents.

IOW, the CRA should have been much more focused on community building. I think the CRA started returning toward this idea with the Downtown Strategic Plan in around 1993, and now this is the primary focus of the CRA in Downtown. And now (not so coincidentally) Downtown is finally becoming a community to be proud of.

[bobcat]

Originally Posted by citywatch

I think it was a lack of enough second guessing that screwed up the revival of DT to begin with. I'm referring to the thinking of (& I've mentioned this before) the former director of the CRA, who in the early 1990s claimed efforts to turn around DT no longer had to be big & demanding. IOW, he had a philosophy that everything was good enough, or that things were perfectly hunky dory.

My point is that we can only work with the hand that we've been dealt. Going on and on and on about how awful things were in the past isn't going to make things better. Right now residential development is increasing in the area, and that's great. Now we should be focusing our energies on working to increase amenities for those newcomers, not complaining about how bad things were 10 years ago.

[citywatch]

Originally Posted by bobcat

Going on and on and on about how awful things were in the past isn't going to make things better.

But keep in mind the saying of "those who cannot remember the past are condemned to repeat it."

I think not knowing the shape of things, then & now, has made ppl far likelier to over or underestimate what should or shouldn't be done to turn around the hood.

For example, LBU mentioned a few wks ago that the Bonvaventure hotel prob was doing poorly because it was such a dusty, 1970s concrete mess. He was partly correct, but by not being aware of that bldg's history (& of the hood's in general) he didn't take into consideration that guests often had been in short supply since the hotel was completed over 25 yrs ago. More important, he & everyone else may not have been aware that the non concrete, traditional niceness of the nearby Biltmore hadn't enabled its owners to do much better over the past 25 yrs either.

My feeling is if ppl forget these issues or aren't aware of them to begin with, they're far more liable to be like that former director of the CRA, who thought enough had been done to revive DT, & that a go-slow approach was AOK. To that I can only:

Originally Posted by LongBeachUrbanist

we can all see that the office market in DTLA was way overbuilt in the 90's, whereas the community/residential aspect was seriously neglected. This was largely due to the CRA's focus being in the wrong place.

But don't forget that it was only about 3 or 4 yrs ago that almost every investor or devlpr thought creating quality housing in DT was very risky or flatout unfeasible. In fact, I believe the CRA even gave a devlpr rights back in the early 1990s to add more apt bldgs south of what's now Disney Hall, but he never was able to go beyond just one apt tower.

Remember when GH Palmer put up his Medici apt bldg in 2001 or 2002? He was considered a daredevil at the time. Tom Gilmore and his OBD proj was seen as walking a tightrope, in a high wind, without the use of a safety net.

I know it wasn't that long ago that no one would build highrise apts or condos in DT because the psf rates for rent or sales prices couldn't be high enough to support that type of construction.

[lakegz]

nowadays i always assume that California projects will have a 4-6 month delay. just about every big building being develeoped in san diego has had some sort of delay.

[ocman]

It's extremely rare when a development is on time. Delays are the rule, not the exception. I usually add on 1.5 years. If they can keep the delay under a year, I think that's very amazing.

[LongBeachUrbanist]

From DTNews, here's a dose of good forecasts for the optimism-impaired. (But citywatch, don't read the second part! )

Study Predicts Continued Downtown Growth
Downtown real estate is "white hot" and shows promise for continued growth through 2006, according to a mid-year economic forecast released last week by the Los Angeles County Economic Development Corporation (LAEDC). "Downtown is doing well and we're rather optimistic for the rest of 2005 and 2006, as more of these construction projects get underway," said Jack Kyser, LAEDC senior vice president and chief economist. The study also found that Downtown ranked the highest in average wages out of 13 regions examined.

While the study presented a mostly rosy picture of the Downtown economic climate, it also pointed to risks - especially about LA Live, the $1 billion entertainment complex and hotel planned for north of Staples Center. Kyser said the hotel element is especially important because it could boost the nearby Los Angeles Convention Center, which has struggled to attract conventions. "If you don't start construction on that hotel, that just puts us further behind," Kyser said. "We have lost business because we don't have an attractive package."

page 4, 7/25/2005

[BrighamYen]

Originally Posted by lakegz

nowadays i always assume that California projects will have a 4-6 month delay. just about every big building being develeoped in san diego has had some sort of delay.

OK "good" because I thought it was only an "LA thang!" I know this sounds TOTALLY naive, but do they have these kinds of long delays with construction in places like Chicago and NYC?

[bobcat]

Mayor Lays Out Agenda to Bring Business to L.A.
By HOWARD FINE - 7/25/2005
Los Angeles Business Journal Staff

Los Angeles Mayor Antonio Villaraigosa plans an ambitious economic development agenda reminiscent of former Mayor Richard Riordan’s initiatives after the 1992 Rodney King riots.


Villaraigosa, who has brought in former Community Redevelopment Agency head Bud Ovrom to lead a restructured business team, is seeking to fast-track scores of major projects throughout the city.


The mayor’s business team will also try to lure major companies to L.A. and keep firms here from leaving, as well as attract major biotech research dollars. “My emphasis will be on creating quality, well-paying jobs by focusing on targeted growth industries,” said Villaraigosa in an e-mail.


The most sweeping initiative involves identifying 75 to 100 development projects of 100,000 square feet or larger and getting them completed rapidly. Among the likely candidates: Valley Plaza in North Hollywood, Marlton Square in South L.A., the old Sears warehouse site in Boyle Heights and the L.A. Live project next to Staples Center.


“These are projects that can have a big economic impact. The emphasis is going to be on getting these projects out the door,” said Ovrom, deputy mayor for economic development. “When I took this job, Antonio told me, ‘Bud, I want to see the cranes moving on these projects.’”


The agenda has raised expectations among development advocates – perhaps to unrealistic levels. But it is seen as a welcome shift from Villaraigosa’s predecessor, James Hahn, who pursued a modest economic development strategy and often left the heavy lifting to others.


“I understand the risk of over-promising, but mayors should be visionary and describe the big idea. They should set the bar high on expectations,” said Chris Martin, chairman of the Los Angeles Area Chamber of Commerce.


Villaraigosa’s agenda hearkens back to the days when Riordan was mayor, cutting deals with developers and trying to prevent businesses from leaving the city. “This is a hands-on, transactional approach out of the mayor’s office, one that’s been missing for the last few years,” said consultant Larry Kosmont.


‘Hound these projects’
The big test will be in execution. Financing challenges, bureaucratic roadblocks and residential opposition all have stymied previous plans for sites such as Valley Plaza and Marlton Square.


A much promoted public-private partnership under Riordan called Genesis L.A. made little progress on a list of 21 high-priority sites in the late 1990s, and had to broaden its mission to invest in other urban redevelopment work.


Ovrom said he wants to “hound these projects on a daily basis, to break the logjams that have stalled them.” He described setting up a “war-room” in the mayor’s economic development office on the 13th floor of City Hall, where officials would track the progress of each of the projects on giant maps.


To help in this effort, Ovrom said personnel will be added to the business team, and an economic development cabinet of at least six city department heads will be created.


The first business team was launched 12 years ago under Riordan as a way of drawing back development to the city’s urban core after the riots. Under the leadership of Rocky Delgadillo – now city attorney – it had some success in cutting deals with companies and clearing roadblocks for business expansions and relocations.


Hahn de-emphasized the business team when he took office in 2001 and changed its focus to developing affordable housing. Business groups acknowledged that housing was essential, but they lamented the loss of the high-profile deal-cutting that dominated the Riordan era.


Ovrom said he plans to multiply the business team’s impact by working closely with other city departments to cut through red tape. “If we can get five or six other departments all on the same page with us on these projects, that’s a staff of thousands of people with a budget of tens of millions of dollars,” he said.


Unlike Riordan, Villaraigosa is likely to have the support of the City Council, where he recently served. Both San Fernando Valley councilwoman Wendy Greuel and Hollywood councilman Eric Garcetti said they welcome a more proactive lead from the mayor.


“It’s exciting to me to see this kind of energy around economic development in this city,” said Greuel. “We need a strong mayor to push these projects forward.”


Garcetti said he did not expect any council resistance to the development push. The bigger problem, he said, would be overcoming neighborhood opposition.


YIMBY Time
Ovrom, who has dealt with local opponents to projects at the CRA, said the approach would be to try to convert NIMBYs (Not in My Back Yard) to YIMBYs (Yes in My Back Yard). “Most of the time, it’s not that people are opposed to doing anything at all with a site,” he said. “They just want it developed on their terms. Incorporating this concept into our projects will be crucial.”


Delgadillo said Riordan and Villaraigosa share an ability to shuttle between opponents and developers in hammering out a compromise. “There’s no way we could have pushed through the MGM Tower in Century City if we didn’t get that compromise with the neighbors,” Delgadillo said.


Ovrom said Villaraigosa will be picking up the phone and asking local business owners what the city can do to help them grow. The business team will also market the city inside and outside the region.


“We have to do a better job of letting people know about the advantages and the incentives we already have,” Ovrom said. “For example, there’s a specific exemption to the business tax for entertainment companies locating in Hollywood and North Hollywood. But nobody knows about it.”


There will also be efforts to develop industry clusters, especially biomedical and biotech firms. During the campaign, Villaraigosa repeatedly mentioned his work to push for the creation of a biomed/biotech park near County/USC Hospital in Boyle Heights. That project has stalled over jurisdictional issues between the city and county.


Last week, Ovrom said the Villaraigosa administration would be aggressively going after research grants from the Stem Cell Research Institute created when California voters passed a $3 billion initiative last fall.


“We will put the full resources of our city to work to be sure that UCLA and USC get those stem cell research grants,” Ovrom said.


Meanwhile, Villaraigosa has said he intends to pursue further business tax reform beyond the measures enacted last year, and also eliminate red tape encountered by small businesses in their dealings with the city.


“To us, this is just as important, if not more so, than moving 75 projects to completion,” said Martin Cooper, chairman of the Valley Industry and Commerce Association. “The mayor must realize that this right now is a business unfriendly city and move to act to make it more business-friendly.”

[POLA]

“We have to do a better job of letting people know about the advantages and the incentives we already have,” Ovrom said. “For example, there’s a specific exemption to the business tax for entertainment companies locating in Hollywood and North Hollywood. But nobody knows about it.”

I would love to learn more about all the incentives offered by the city. Who might I contact at city hall to get more info?

[LA21st]

Hell yeah! Antonio sounds like LA's version of Daley. He's all about progress of the city. I really like this new mayor.

[LA21st]

Originally Posted by LosAngelesBeauty

OK "good" because I thought it was only an "LA thang!" I know this sounds TOTALLY naive, but do they have these kinds of long delays with construction in places like Chicago and NYC?

Depends on the developer or architect. As far as the city of Chicago's involvement, they push the projects forward as fast as they can-big or small. There aren't too many fights with NIMBY groups here..they don't have much power.

[ocman]

NYC has it pretty bad when they try to get projects approved. I think we are just getting a glimpse of the development climate there with the whole WTC towers controversy,.

[colemonkee]

I was talking with a friend who works in the concrete business this weekend, and he said his company recently put in a bid for a $1 billion project downtown. I'm assuming this is LA Live, because it's the only project of that scale that's that far along. So the wheels seem to be turning...

[LAMetroGuy]

big wheels keep on turning... do you think that they are waiting for the X Games to finish before they break ground????