www.skylofts.com/html/news.html
Developers envision 'Times Square West' new_downtown Big Dream for Downtown Developers envision 'Times Square West' By Rick Orlov Staff Writer (Daily News) image3_th A massive $1 billion hotel, entertainment and residential district for downtown Los Angeles will be announced today, with a towering 55-story hotel-condominium complex dominating the area around Staples Center. In one of the largest projects ever proposed for Los Angeles, the Anschutz Entertainment Group hopes to capitalize on the success of Staples Center and the boom in downtown development it helped spur. The developers expect the city to help finance the project -- an issue that is certain to be controversial -- although details remain unclear. Officials said the developers want some level of tax help, perhaps $10 million, a waiver of all fees and permits, a long-term low-interest loan and a reinvestment of the hotel bed tax for 20 years. Artist renderings show a modernistic, colorful development one of its designers termed as "Times Square West" that also includes heavy borrowing from the Ginza district of Tokyo with high-tech advertisements hundreds of feet high, bright lights, amphitheaters, movie houses and restaurants mixed with a new downtown residential population. "As big a deal as Staples Center was, this dwarfs it," AEG President Tim Leiweke said. "Staples was the catalyst and springboard for this area of the city, but this will have far more impact on the city's economy." In addition to providing the headquarters hotel long sought for the Convention Center, which has been a financial disaster for the city, Leiweke said it also includes developments that will serve as an attraction on their own and for various events and award shows. "After this is built, the only competition we will have will be New York in terms of what we can offer," Leiweke said. image1_th Leiweke said the heart of the project will be its 1,200-room hotel in the 55-story structure that will also include 100 luxury condominiums. It will be the westernmost side of the property on Olympic Boulevard and facing the Harbor Freeway, with plans to have the east side of the building used for commercial purposes. Beneath it will be a 4-million-square-foot entertainment district encompassing a 7,000-seat concert theater, a multiplex theater of possibly 16 screens with seating for 4,000 people and a ballroom/meeting facility for 3,000 people, along with restaurants, bars and other facilities around a 40,000-square-foot open-air plaza. Plans also call for a nearby second luxury hotel along with 4,000 new residences spread along an area bounded by 12th Street, 9th Street, Grand Avenue and the Harbor Freeway. Leiweke said the group estimates it will create 19,000 new jobs for both the ongoing operations and construction -- which could begin at the end of this year or the beginning of 2005 -- and generate $2 billion in immediate economic impact. The first buildings could be open in two years, but total construction could take as long as 10 years. It also is expected to provide $15 million in new tax revenue. The group has been working to develop political support to try to avoid some of the pitfalls that marked the construction of the Staples Center arena -- even with many of the same financing arrangements involved. Among these is a loan of an undetermined amount from the city's Community Redevelopment Agency and permission to keep, for 20 years, all revenue from the hotel bed tax. image2_th In addition, the developers are seeking permission to use more parking spaces at the Convention Center and surrounding city-owned lots for the hotel-entertainment complex. "This is the next step in the process," said the city's chief legislative analyst, Ron Deaton. We will see what they want and then we'll decide what we're willing to do." Deaton said he is more comfortable with this package than he was with the initial proposals involving Staples Center. "That was a complicated deal where they wanted city land and money," Deaton said. The requests for city funds are expected to be limited to the hotel and banquet facilities. All other parts of the development are being privately financed. Mayor James Hahn said he was supporting the overall project even as he cautioned that it would need final city approval. "We want to make sure the final deal is in the best interests of the city, but there is no question about the need for a Convention Center hotel," Hahn said. "We have a gorgeous Convention Center, but it's no good if people don't come to it. image4_th Councilwoman Jan Perry, who represents the downtown area and has been working with AEG on its proposal, said she too wants to see something worked out. "Of course there is the question of how much of a city investment will be required," Perry said. But no convention center hotel is being built in the country without some public help. City Council President Alex Padilla said he supports the project's goals, but is reluctant to commit to a specific dollar amount of city help. "I like what they're talking about, but there has to be limits as well," Padilla said. "So far, I have yet to see any specifics on how much money they are talking about and what sort of guarantees the city has. City Controller Laura Chick, who was involved in the controversy over the Staples Center deal, said she will be closely watching developments. "We have been hearing for years that a hotel is coming and it's something we need, but I also have an obligation to make sure our tax dollars are used wisely," Chick said. "There might be a need for some investment, but we have to make sure it is money that is guaranteed to be returned." The plans for Staples Center generated months of political controversy when then-Councilmen Joel Wachs and Nate Holden threatened to take the matter before voters if any city dollars were to be used. Wachs later dropped his objections and came to support the plan that involved a loan from the Community Redevelopment Agency with a detailed plan for repayment. Jack Kyser, chief economist for the Economic Development Corp. of Los Angeles County, said the project has long been needed. "This is not just a boost to downtown, it's a benefit to the entire city and region," Kyser said. "Los Angeles has not been able to compete well with other cities like San Diego and San Francisco for the big conventions. "Something like this will give large groups a reason to come to Los Angeles and bring their families as well to spend several days in the city." Kyser said he believes the money being spent by Anschutz will be only the next stage of the downtown boom. "I think once this starts, you will see the start of some real aggressive efforts in the downtown area," Kyser said. Downtown has undergone a renaissance in recent years -- partly because of Staples Center, and partly because of land prices around the city. Buildings once used as offices 50 or 60 years ago have been converted to loft apartments and new condominium sales are exploding.
|
http://csua.com/feed/