FOR IMMEDIATE RELEASE
Contact: Lauren Lamkin 310.633.9432 lauren.lamkin@hillandknowlton.com
GRAND PLANS FOR GRAND AVENUE MOVE FORWARD
GRAND AVENUE AUTHORITY APPROVES RELATED COMPANIES $1.8 BILLION MASTER PLAN TO CREATE A VIBRANT REGIONAL DESTINATION
One of the nation’s largest public/private developments, plan centers on a large park connecting landmark cultural and civic buildings with other public attractions to engage region’s 17 million residents and 24 million annual visitors
May 23, 2005, LOS ANGELES – The Los Angeles Grand Avenue Authority today voted unanimously on the recommendation of the Grand Avenue Committee to approve the master plan created by The Related Companies that provides for the self-funding and development of a 16-acre civic park along with up to 3.5 million square feet of development on nine acres in downtown Los Angeles. The mixed-use Grand Avenue plan comprises 400,000 square feet of retail, a 275-room boutique hotel and up to 2,600 residential units. The $1.8 billion project on two city, and two county-owned parcels, and an adjacent site to be acquired by Related, will generate 5,300 jobs at build-out plus $28 million in annual revenues for the city, county and state. Related’s concept is the result of months of public meetings, which shaped the urban design and informed the types of commercial uses and public spaces. In addition, the Authority approved financial terms as negotiated by the Grand Avenue Committee with The Related Companies that relies on conventional real estate finance sources with a smaller amount of public support entirely from funds generated by the project. There will be no city or county general funds used for the project. “This plan achieves the many goals we set for this development. It will serve all Angelenos, with great public spaces and a mix of uses. Most importantly we will have a new civic park, a place for families and for community celebrations,” said Los Angeles County Supervisor Gloria Molina, chair of the Los Angeles Grand Avenue Authority. The Related Companies master plan weaves together the commercial and residential uses with an emphasis on creating great public spaces, connections between the streets and the park and shaping view corridors that highlight the city’s architectural icons, Disney Hall, Cathedral of Our Lady of The Angels, and City Hall. The multi-phased development will include affordable and market rate housing with multilevel retail and entertainment spaces built around large plazas and public spaces. “Bringing more housing, including affordable housing, along with jobs to this area of downtown are critical elements of this plan. Everyone will benefit from the new revenue that will be generated by this great addition to our civic and cultural center in Los Angeles,” said Los Angeles City Councilwoman Jan Perry, vice chair of the Los Angeles Grand Avenue Authority.
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Grand Avenue’s initial $500 million development of 1.1 million square feet will be the most dramatic and highest density element of the overall master plan and will provide a majority of components that are desired to create a new and vibrant destination for downtown that will engage the region’s more than 17 million residents and 24 million annual visitors. This project will be built concurrently with more than $50 million in planned improvements to the existing civic mall to create a grand 16-acre civic park that will itself become an urban destination for Angelenos. The first phase of the development will be built on the four-acre parcel directly across the street from the Walt Disney Concert Hall and is planned to include a food market, bookstore, several signature retailers and a series of small shops. Planned entertainment uses include a cinema and/or music venue. The project’s most intensive attraction will be a collection of restaurants and clubs and associated art galleries that will be found at various locations within the complex. Most will take advantage of views to Walt Disney Concert Hall as well as provide extensive use of outdoor dining areas, terraces and roof decks. The site, which slopes quickly downhill from Grand Avenue, allows this exciting mix of entertainment, dining and shopping uses to be spread over several carefully integrated levels. A distinctive 40-50-story iconic tower at the corner of Second and Grand is planned to combine a boutique hotel of up to 275 rooms with 200 condominiums on the upper floors. At Olive and First Streets a 25-30-story residential tower will combine 150 market rate condominiums with 88 affordable apartments. These buildings flank plazas and courtyards with inviting outdoor seating and dining areas that will ultimately connect Grand Avenue to Hill Street. "We look forward to developing a great destination location for the City of Los Angeles. This development, in a dynamic location, will create an exciting, much needed 24/7 environment in Downtown Los Angeles for both City residents and world visitors," said Stephen M. Ross, Chairman and CEO, The Related Companies, L.P. The city and county will maintain ownership of the properties and The Related Companies will have a 99year ground lease on the parcels. Related will prepay a base amount on each ground lease. In addition, Related will pay to the city and county a percentage of condominium sales, hotel room revenue and gross rents after Related has achieved a certain return. The Related Companies advance payment of $50 million on the 99-year base ground lease that underlies the first phase of development will fund the civic park. The park will create a great civic gathering place for small to large-scale events as well as for family picnics or a quiet respite. It is envisioned as several distinct areas that will be landscaped and programmed to serve different uses. On the west end across from the Music Center, the park will be programmed with cultural, arts and entertainment events, its heart will feature a colorful garden area, and the east end by City Hall will be designed to host civic celebrations and multi-cultural festivals. “This dynamic project, among the largest in the history of Los Angeles, will create an exciting downtown center for a region with 17 million people, and provide housing, great restaurants and shops, theaters and cultural venues, and a beautiful new central park where people will gather to celebrate major events,” said Eli Broad, chairman, Grand Avenue Committee. The Related Companies’ premier master plan team includes world- renowned architects Frank Gehry and David Childs of Skidmore, Owings & Merrill and Howard Elkus of Elkus-Manfredi Architects. Gehry believes the master plan is a solid urban concept that integrates well with downtown and provides important linkages between cultural and civic venues. The Related planning team also includes such notable architects and planners as Laurie Olin of the Olin Partnership and the local firm of Levin & Associates Architects. -more-
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“This unparalleled location will afford us the opportunity to design an exciting mixed-use development that will take advantage of both site location and topography. The world-renowned architectural team that has been assembled to design this project will create a new landmark in the urban environment,“ said Kenneth A Himmel, President and CEO, Related Urban Development. The master plan and terms approved outline a scope of development along with deadlines and penalties if The Related Companies does not perform. Financial terms will continue to be refined as the process moves forward. Public investment in the affordable housing, civic park improvements, Grand Avenue streetscape, public spaces and public parking will be funded by developer ground rents and revenues generated directly from the project. With today’s vote the master plan will now be subject to review and approval by the Community Redevelopment Agency, the Los Angeles City Council and the Los Angeles County Board of Supervisors.At the same time work will begin on the Environmental Impact Report which will likely be completed by the end of the year. Construction on phase one is expected to begin by December 2006. The Grand Avenue Committee, which has led the negotiations and planning with The Related Companies, is comprised of Eli Broad, chair; Nelson Rising and Antonia Hernandez, co-chairs; Alma Martinez; Ayahlushim Hammond; and Martha Welborne, managing director of the Grand Avenue Committee. The Los Angeles Grand Avenue Authority is a Joint Powers Authority formed by the County and the Community Redevelopment Agency in 2003 to oversee the project. Board members are Los Angeles County Supervisor Gloria Molina, chair; Los Angeles City Councilperson Jan Perry, vice chair; Los Angeles County Chief Administrative Officer David Janssen, and Community Redevelopment Agency of the City of Los Angeles CEO Bud Ovrom.
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