CAO Needs Quick Turn Around on Alexandria Bonds

DOWNTOWN LOS ANGELES — Back in November the CRA approved bond money for a rehab of the Alexandria hotel. There have been various votes and memos ever since, but now the City Administrator's Office has issued a request to Council to make one final round of approvals. Oh, and if they don't do it this week the building will go market-rate.

The Agency requests that this Project be expedited to the Council for review and approval. They indicated that the Developer must close escrow by July 30, 2006 on the Alexandria Hotel property located at 501 S. Spring and 210-212 W. Fifth Streets in downtown Los Angeles. Should the Council not approve the Agency's request to issue bonds and provide and secure additional gap financing, the property will still be sold to Mr. Buxbaum. Improvements required under the City of Los Angeles' Rent Escrow Account Program (REAP) will still occur, but the buyer will not provide any additional improvements or social services to the tenants. In addition, because there are no affordability covenants tied to the land or the building, vacant units will be rented at market-rate levels. Qualified, existing tenants, however, will still be protected under the City's Rent Stabilization Ordinance.

As I said in November, I'm fully in support of this rehab. It provides better facilities for tenants and also opens the ground floor of the building back up to the community and restores some of its previous glory.