Stalled and Fenced Off, L.A. Central Site Awaits a New Future
Eric Richardson
[Flickr]
Fencing has blocked off this block of 12th street sidewalk since June, as the fate of the $80-million property it adjoins is decided in the courts.
DOWNTOWN LOS ANGELES — One block away from the fanfare of L.A. Live's nearly completed, $1-billion hotel and condo tower, an $80-million piece of land sits vacant, with weeds growing through cracks in the asphalt.
The city is investigating the closure of a stretch of 12th street sidewalk next to what was to be the L.A. Central project, but that is likely the least of the New York-based Moinian Group's problems when it comes to the site. Wachovia Bank has initiated foreclosure proceedings on the site, and a law firm that has been defending the developer is asking out, saying that its bills haven't been paid since August.
While three sides of the project remain open to pedestrians, the sidewalk along 12th was caught inside the fencing and blocked off. "Normally, when a permit to close the sidewalk is issued, it has a time limit," explained Gregg Vandergriff, B-Permit Manager for Public Works - Engineering. In this case, though, no specific permit allows the closure.
The city is currently investigating the project and the closure. "We're still in the fact-finding process at this point," said Vandergriff. "I think that we'll conclude that before the end of this month." If the city finds the sidewalk should be open, it would then order the property owner to comply.
Moinian, though, may not be the property owner for much longer.
Architecture firm RTKL filed a lawsuit against the project in October of 2008, alleging that it is owed $3.6 million on its $14 million contract. To recover its money, the firm is seeking to foreclose on a lien it has on the property. The case is scheduled to go to trial on February 1, but Moinian law firm RKMC last month filed an application for relief asking that it be removed from the case. Partner Yakub Hazzard testified that the firm's invoices had not been paid since August.
In November, Wachovia Bank initiated foreclosure proceedings on its $55 million loan on the project. Moinian still owes the bank $46.5 million.
Moinian bought the four-acre site from AEG in 2006 with plans to build a project that would include 860 market-rate residential units, a 222 room hotel and 250,000 square feet of retail. The lot encompasses an entire block, stretching from Figueroa to Flower and 11th to 12th. RTKL, the firm responsible for Staples Center and much of the L.A. Live complex, was brought on board to do the design.
The project appeared ready to break ground in July of 2007, when construction fencing was erected and parking operations on the site were stopped.
Then, nothing.
After three months, pieces of the fence were pulled down and cars were again allowed to park on the site. That was stopped in June, when an injunction was issued in a lawsuit filed against Moinian by AEG. Again the site was fenced, and it has sat empty ever since.
Tornadoes28 on January 15, 2010, at 09:02AM – #1
Moinian just needs to let it go and Wachovia should be able to sell to another developer. Even in this economy, I think the property would sell. Maybe even the LA Live developers could or should buy it an develop it.
I also would like to see the lot north of the Ritz developed as well. But the economy will have to improve before that happens.
Vinny Marchese on January 15, 2010, at 09:39AM – #2
I am pretty sure Moinian has already defaulted on this property. I seen two Asian investors out there in their suits, looking at the property. They were walking the perimiter and it looked as if they were ready to make an acquisition.
OFF THE STREET on January 15, 2010, at 11:37AM – #3
Any developer would be wise to buy it and use it for retail, which would complement the current L.A. Live setup.
KBonas on January 15, 2010, at 06:11PM – #4
Can someone explain why they aren't using the site for parking in the meantime? The cars (300+?) that would park on this site there are now pushed deeper into South Park where parking is already tough to find.
Eric Richardson (@blogdowntown) on January 15, 2010, at 10:59PM – #5
KBonas: Take a look at our September story on the situation. Basically, the sale agreement for the land stipulated that AEG would be the only one to run any parking on the site until construction commenced. Moinian started to prep for construction, but then turned around and ran its own parking on the site. AEG sued, and the court issued an injunction in its favor forbidding Moinian from doing so.
I would assume something new will happen to the site in not too long.
John Crandell on January 16, 2010, at 12:09PM – #6
Given the long term picture for residential real estate as well as excavation and concrete (or steel) framing costs for highrise construction, this and other nearby empty blocks will remain parking lots for a long time to come. Clearly, the 9th District councilwoman, the mayor, the city planning department and the redevelopment agency ought to delve in creative alternatives for South Park.
It isn't as though we're now back to the 1970s in this area (with Gil Lindsay always itching to get his fingers into the cookie jar). Quite the opposite, for the area is now solidly anchored by a wildly expanded fashion district, the expanded convention center, the arena & L.A. Live, the recent spate of condominiums and a boatload of rehabs all over the Historic Core. Downtown now means so much more to everyone in the region.
And then there is Hope Street leading off from the terminal landmark of the Central Library. The juncture of this street with Pico Boulevard presents an unparalleled opportunity for a more rightly conceived scenario, a dazzling prospect which would provide an unmistakeable symbol for the metropolis. If the Disney Corporation can invest so much capital in places such as Paris, Hong Kong, Tokyo and Times Square, why not creatively speculate and imagineer in Downtown L.A.?
Over the past decade we've been presented with the next big thing - the arena, the cathedral, the concert hall and L.A. Live. The right scenario for Hope & Pico could be bigger than all of them together.
No other major city on Earth possesses the unique qualities and potentiality of what presently exists along Hope Street. Now, more than ever, we need creative leadership!
JDRCRASH on January 17, 2010, at 09:33PM – #7
Downtown wasn't too oversaturated with new construction. Of course, when you add in the conversions...
Purple Haze on January 18, 2010, at 08:38PM – #8
Oh give it UP, Crandell!
The culture now has gone so far around the bend that your idea hasn't a chance in heaven or hell at taking root. A person these days simply needs some sort of distraction, any kind of hook or else getting one of those big rock candy condos at Olympic & Fig. You offer a utopian solution and the big boys wouldn't like anything like that. They'd come down on you like a ton of bricks, sure as shit.
People gotta have their distractions, ya know? You're asking people to go outside themselves. In certain precincts, that a high crime and misdemeanor. You expect ANY politician to listen to your spiel? Bah! You do not see just how impoverished this place truly is.
Go away. I'm sick of your hope.
David on January 24, 2010, at 04:22PM – #9
John - Your question about why has Disney invested invested so much capital in certain area but not in Downtown L.A. has a simple answer -- the areas where Disney invested is areas where they could buy huge pieces of property from only one buyer. In Downtown L.A., the ownership is so fractured it makes it almost impossible to assemble pieces of land big enough to do large-scale development.