$3 billion predicament: grand avenue project delayed
The $3 billion Grand Avenue Project, being developed by New York-based Related Companies, has been delayed. Official groundbreaking is being pushed back to summer at the earliest.
“Some key folks had conflicts with the timing,” said Kathleen Flood, VP of MWW Group, Related’s West Coast PR firm. Key folks, eh?
As reported by blogdowntown recently, architect Frank Gehry, one of the most pivotal players in this ongoing venture, was openly critical of the project’s funding during last week’s Concrete Frequency symposium.
The outspoken architect contends that “Money is not available and the developer is in denial.” This latest snag seems to fit in perfectly with Mr. Gehry’s allegation.
Although, according to an article in the New York Times last month, Related should not be experiencing financial hardships.
“The Related Companies … received equity and debt investments of nearly $1.4 billion from the investment arm of the Abu Dhabi government and others, the company said Monday.
While Related’s current projects are fully financed, the capital will help finance lucrative New York City residential and commercial projects in the future, the company said.”
Even in the face of this latest delay, the project is still inching forward as the site’s existing parking structure is being dismantled.
However, with an unsteady market and construction costs that have climbed by over $1 billion since last year, this latest delay is worrisome to many.
-work begins at grand avenue project site
-new grand avenue renderings
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8 comments
Well, I want to thank the various hotels that have sued and delay the project. i also want to thank the city council who have fought this project because they wanted more money for the homeless (via fees) and more housing for the poor (20% affordable housing). i would also like to thank those citizens who delayed the project for not having enough public input, the county supervisors who worried way too much about traffic (on the red line and one stop from union station), and the citizens who complained that mega projects and subsidies shouldnt be given out to developers (despite the fact that they were adding 2 million in street improvements and 50 million for the park for free). I would also like to thank the developer for not knowing that developing in LA is a nightmare, and not preparing for it accordingly.
Who knows, maybe this is a good thing. Maybe by 2015, we will find a way to better use the land anyway. Who needs live/work spaces, state of the art commercial space, retail, residences, 5 star hotels, restaurants, a huge civic park, and iconic towers clustered around a subway stop anyway? Who needs a 5 star hotel or a grand park near a cultural landmark like the music center?
Once again, I want to thank everyone who delayed this project 18 months. Just enough to make sure it will never happen.
We need monarchy rule in the U.S.
“We need monarchy rule in the U.S.”
Nah. We just don’t need to be as strict as SF. SF can withstand rising risk, LA cannot. At least not now.
We don’t need the grand ave anyways. We really dont. We need those adaptive reuse projects to finish, and for residents to fully occupy them. We also need the vacancy rate of our business towers to be lower than the westside. Once that happens, grand ave. project or not, DTLA is on its way.
I really do agree that we should have affordable housing and that we should have developers pay fees. I do feel that we should honor our legal process, and that the other hotels had a legitimate case (unlike the herald examiner project).
Really, I think that over 2008, downtown’s MO should be on forming a decent residential neighorhood.
Well, this project along with a few others will be the capper on finishing the “redevelopment” of Bunker Hill that started, oh, OVER 50 YEARS AGO.
The few others include the new US Courthouse, the new civic park and the new Performing Arts High School. And that will rid the area of all parking lots.
jeremy r,
You are absolutely right. LA’s new slogan should “home of the word ‘no’!”
This is getting ridiculous
It is not surprising that this project is delayed. I only hope it does not become another “Disney Hall”, which took 10 years to get built. It can be frustrating seeing so many delays on projects, but when you look at the development over the past 5 years, so much has been completed.
Maybe now it is time to concentrate on filling up the redeveloped historic structures like the Union Lofts, Chapman Flats, El Dorado, Roosevelt, Brockman, Mandel and Coulter etc. this year and support new retail. If 4,000 unit are to be completed this year…that is probably at least 6,000 plus new residents. By the end of this month the Broadway revitalization details will be announced and we could finally see some progress on this important downtown street.
I am sure Related will commence this project in 2008. Too much work has been done to delay it for a long period of time. I also will bet my money on anything Eli Broad wants…he and Riordan finally brought us Disney Hall and Mr. Broad wants The Grand built!
Grand Avenue is still going strong! http://la.curbed.com/
I think the “pushed-back” date is for actual heavy construction (i.e. digging, concrete), which begins in summer at the earliest. But, the demolition of the garage is still scheduled for February.
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