L.A. council backs $198.5 million in financial aid for downtown hotel project

The Los Angeles City Council voted Friday to back a $198.5-million financial aid package for a high-profile downtown hotel project that has been in the works for more than a decade.

On a 12-0 vote, the council agreed to provide a combination of subsidies and loans to Related Cos., which is seeking to build two towers — one 38 stories, the other 16 — across from Walt Disney Concert Hall.

The council’s proposal would allow Related to keep nearly half of the $396.9 million in tax revenue that would be generated for the city by the project over 25 years. That money would normally flow into the general fund, which pays for police, firefighters and other city services.

See the most-read stories this hour >>

City officials calculated the present-day value of the financial aid at up to $66.6 million, since the value of a dollar is expected to steadily decline over 25 years. That money is expected to cover about half of the project’s financial gap, according to city analysts.

The financial aid plan was approved without any discussion by council members.

The Grand Avenue project is expected to create 1,914 full-time jobs and 3,597 temporary construction jobs. In addition to a 305-room Equinox hotel, the development would offer 301 apartments, 128 condominium units and various stores and restaurants.

Construction is expected to begin by the end of 2017.

ALSO

Once a den of prostitution and drugs, the Cecil Hotel in downtown L.A. is set to undergo a $100-million renovation

Downtown punk club the Smell launches $1.4-million GoFundMe campaign to relocate

How much house does $930,000 buy around downtown and central L.A.?

david.zahniser@latimes.com

Twitter: @DavidZahniser

Copyright © 2017, Los Angeles Times
EDITION: California | U.S. & World
69°