Civic Center II : Developer of Union Station Area Wants Government, Private Mix

Owners of one of the largest parcels of undeveloped land in downtown Los Angeles are drafting a master plan to turn the historic Union Station area into a second civic center that could house tenants ranging from the Police Department to the Clippers basketball team.

Catellus Development Corp., which also is marketing the 52-acre site just east of City Hall, envisions a huge complex of government towers, hotels, retail outlets and entertainment centers built over and around the Art Deco-era depot--a major transit hub for Amtrak trains, Metro Rail and new light-rail commuter service.

The project would signal a new direction for downtown growth by luring tens of thousands of commuters out of their cars and into mass transportation systems to work, shop, dine and attend sporting and entertainment events, said Elizabeth Harrison, vice president of development for Catellus.

The site was studied by the Community Redevelopment Agency in 1988 as a possible urban center for office high-rises and retail stores. Catellus now is targeting as tenants downtown government agencies that are legally required to renovate asbestos-laden and structurally unsafe buildings.

“We believe we are breaking new ground here--it is going to lend Los Angeles more of an East Coast experience in terms of mobility,” said Harrison. “We think government agencies are the engine to drive the retail stores and hotels, so we’re trying to get the government users in there first.”

Catellus estimates that the site, formerly owned by Santa Fe Pacific Corp., could be worth $100 million and that proposed development will soar into the billions. But the developer may be in for a tough fight.

City officials say they are concerned about the project’s potential impact on commercial and retail centers such as nearby Central City West, and on downtown traffic congestion. They also say that current plans do not include sorely needed low- and moderate-income housing. Merchants in nearby Chinatown and Olvera Street fear that the development will siphon off customers.

The development “would be unique for Los Angeles because of its linkage to mass transit systems,” said Melanie Fallon, director of the city Planning Department. “But they have no approvals yet, and before we commit ourselves, there needs to be a closer look at potential environmental, traffic and air quality issues.”

Catellus, which expects to thrash out such concerns in meetings with city planners and community leaders, has been talking for several months with potential clients, including the Los Angeles Police Department, the Southern California Rapid Transit District and Spectacor Management Group, the firm in charge of the Los Angeles Sports Arena, home of the Los Angeles Clippers.

“We do need a new Parker Center and they came to us with a proposal we think is interesting,” said Cmdr. Jim Jones, in charge of Police Department support services.

Essentially, Catellus offered to build a new police headquarters at Union Station to department specifications; in return, the city would pay for the $80-million structure with revenues created by the sale, lease or redevelopment of the current Parker Center site, Jones said.

“Our intent is to ask the City Council in the next few months to fund an independent expert to study their proposal (to test its feasibility) and other possible alternatives,” said Jones.

Separately, Catellus is entertaining a preliminary proposal from Philadelphia-based Spectacor to build a new 22,000-seat stadium near Union Station.

“Union Station is perfect for the Clippers,” said Los Angeles Coliseum Commissioner Richard Riordan, who is helping Spectacor negotiate the proposal.

“It would benefit from the tremendous number of people who will be commuting by rail downtown,” Riordan said, “but would not displace existing buildings or cost that much to build.” Riordan declined to speculate on the construction cost.

Spectacor President Tony Tavares declined to discuss the proposal, saying the talks were “too preliminary.”

Deputy Mayor Mark Fabiani said Mayor Tom Bradley has asked the Coliseum Commission to investigate several downtown sites for a new sports arena, including Union Station.

The office vacancy rate in downtown Los Angeles in the first quarter of 1991 was 21%, compared to a national average of 20%, according to Cushman & Wakefield of California, a major commerical real estate brokerage firm.

The master plan for the property is expected to be delivered by September to Councilman Richard Alatorre.

The project would dramatically strengthen the base of business support for Alatorre who, as chairman of the council’s redistricting panel in 1986, changed the boundaries of his district to encircle the Union Station area. Alatorre as district representative would play a major role in determining zoning changes to accommodate the project.

In an interview, Alatorre welcomed the proposal as a way of opening a door for economic growth and jobs for thousands of long-neglected Latino residents east of the Los Angeles River. However, Alatorre also indicated that a compromise may have to be hammered out before he signs off on the proposal.

Although Catellus officials said current plans do not allow for affordable housing, Alatorre warned, “I’ll be pushing for a low- and moderate-income component.”

Business leaders from nearby Chinatown, Olvera Street and Little Tokyo said they are worried that the project would gobble up land that could be used for affordable housing, as well as worsen traffic congestion, increase rental fees and absorb their customers.

“We’re worried about being swallowed up without having an opportunity to have our views included in the process,” said Don Toy, chairman of the Chinatown Advisory Committee for Redevelopment.

Vivian Bonzo, president of the Olvera Street Merchants Assn., said, “They might saturate the area with too much retail, which could take away the few customers we get at night.”

Catellus officials declined to provide many specifics about the proposal.

Sources close to the project, however, said plans call for up to 12 million square feet of office space to be built at the Union Station site, and at the adjacent 22-acre Terminal Annex area, over a 15- to 30-year period. The New York-based architectural firm of Ehrenkrantz & Eckstut, which designed New York’s Battery City Park, has been hired to develop the master plan.

The first agency to occupy the Union Station site will be the RTD, which is completing an agreement with Catellus to construct a 26-story twin-tower office building totaling 595,000 square feet.

“The project is historic for Los Angeles in that mass transit is driving the development, and not the other way around,” said Nikolas Patsaouras, president of RTD’s Board of Directors.

Catellus officials said they expect to unveil their master plan at a series of public meetings in the fall.

“A lot is at stake--unless it is done right, it could be a disaster for Central City West, for the transit hub, for the freeways and the downtown core,” said Councilman Marvin Braude. “Public participation in this will be of critical importance and the sooner the developers share their plan with the public the better.”

Downtown Development

A new plan for developing 52 acres of land near Union Station is on the drawing board.

Originally, the parcel--one of the largest pieces of undeveloped property in downtown Los Angeles--was conceived of as an urban center for office high-rises.

Now, the aim is to build government towers, retail stores, hotels , restaurants and possibly a sports arena around a growing transportation hub.

BACKGROUND: Union Station was built in 1939 for use by the Santa Fe, Union Pacific and Southern Pacific railroads. Now, the site--used as an Amtrak terminal--is owned by Catellus Development Corp., a real estate arm of Santa Fe Pacific Corp.

STATUS: The plan is expected to be delivered to City Councilman Richard Alatorre by September.

LOCATION: The site covers an area around Union Station, bounded by the Hollywood Freeway and Alameda and Vignes streets.

NEW PLAN: While still in the early stages, the landowners envision a massive complex of government towers, hotels, shops and restaurants within walking distance of Olvera Street, Chinatown and Little Tokyo.

* Catellus says it is negotiating with prospective tenants including the Los Angeles Police Department and the Southern California Rapid Transit District.

* Preliminary discussions are also under way with the managers of the Los Angeles Sports Arena to build a new sports facility for the Los Angeles Clippers basketball team.