Nikkei Center Development Runs Out of Time
Eric Richardson
[Flickr]
Negotiations over a 5.66-acre city-owned site on the edge of Little Tokyo have stalled, in part over the future of the rail line that runs on two of its sides.
DOWNTOWN LOS ANGELES — Plans for a large mixed-use development on the edge of Little Tokyo are headed back to the drawing board, but that doesn't mean the developer is completely out of the picture.
City Council will vote Wednesday on a recommendation to end a negotiating agreement with Nikkei Center Partners, LLC, allowing it to resume the search for a developer able to make something happen on the 5.66-acre parcel at 1st and Alameda.
A partnership made up of the Little Tokyo Service Center (LTSC), Urban Partners and Kaji & Associates won the right to purchase the land in 2008 for $44 million, but negotiations caused the sale to drag out. LTSC and Urban Partners would later pull out of the partnership, leaving Kaji & Associates to continue talks alone.
The city's negotiators say now that a deal simply won't happen. "It is clear that the sale of the Property as proposed by the Developer will not occur," says a report signed by Chief Legislative Analyst Gerry Miller and City Administrative Officer Miguel Santana (PDF).
The report blames Metro's Regional Conector project for killing the deal, saying that the transit agency's declaration of the site as a "preferred alternative" for the Connector caused the developer to reject the city's offer and ask for a five-year extension of the negotiating deal.
While the delays that would be brought by the proposed construction of the rail line were a factor, Kaji principal Jon Kaji said Tuesday that the economy played a larger role.
"The current economy does not justify going forward" with the negotiated $44 million purchase, he told blogdowntown.
The Nikkei Center plans would have put 390 residential units, 80,000 square feet of retail, and 166,500 square feet of office space on the site.
"We're optimistic that whatever year the project moves forward, we still believe the mixed-use model makes sense," Kaji said.
He hopes that his company will still be involved in the development when that does happen. He hopes to create a public-private partnership with the city and Metro to see both the transit and development happen on the site.
Also on Wednesday, Council will vote to approve an Environmental Impact Report for the site, potentially speeding the process for whatever development does eventually take place. More specific plans would still need to go through the approval process.
According to Councilwoman Jan Perry's office, the city now intends to wait for Metro to solidify its plans before looking for a new development option.
Kaji is willing to wait. He pointed out that it has been 50 years since the city shrunk Little Tokyo by condemning the land used to built Parker Center. "If we have to wait another eight years to get control of the site, we'll do that."
Guest on December 07, 2010, at 06:27PM – #1
We have to wait for the process to begin again? That's really tough for the neighborhood. It's a prime parcel that could really help Little Tokyo if it were developed. I kinda figured things were on the skids... I'm just really impatient.
Russell Brown on December 07, 2010, at 11:38PM – #2
It is a shame that the project can not move forward, but given the present economy and financing issues- not a surprise.
The Regional Connector all underground alternative will actually make the site significantly more attractive than the present surface stations. The existing station adds barriers along Alameda and unattractive tracks along 1st Street. The new configuration will underground the station with tracks below the (to be removed) Office Depot.
With the build out of the high speed rail, this site will become a Gateway transition project to a southern entrance to Union Station. The rail line platform will cover that part of the freeway and the trains will enter from the LA River rail yards across the Arts District. Easy to add pedestrian entrances to Union Station along those platforms.
If parts of Park 101 freeway cap park and LA River restoration in the Arts District occur, even more of the neighborhood will change.
In 10 years, the entire composition of that neighborhood could be very different. This area will be adjacent to the Red Line heavy rail that goes to Beverly Hills/ Century City and Westwood, light rail that goes to Culver City/ Santa Monica Pier, Azusa, Ontario airport, Whittier and to Long Beach. Inter-state rail line will go to San Francisco & Anaheim with Sacramento, Riverside and San Diego added later.
Not a bad travel choice from outside your residence's front door, without a car.
James Fujita on December 13, 2010, at 05:27PM – #3
I fail to see how the tracks on First Street are unattractive. What is unattractive is the parking lot at the corner.
I don't know if you can fairly blame the Regional Connector itself for killing the project, but certainly the controversy surrounding the project would have made it difficult to move forward.
Now that the Regional Connector issue is settled, I'm hoping that Metro and the city can work with a developer — preferably one that includes Kaji — to build the Nikkei Center or something similar to it.
And of course, maintaining Little Tokyo as Little Tokyo is important as well.