LOS ANGELES : College Real Estate Deal Was Sound, Grand Jury Says

Officials of the Los Angeles Community College District generally followed sound business practices last year when they decided to sell a Mid-Wilshire building and replace it by leasing a Downtown site for administrative offices, the Los Angeles County grand jury has concluded.

In a report scheduled for discussion at the district’s Board of Trustees meeting on Wednesday, the 1993-94 grand jury said the lease terms of the Downtown site, at 770 Wilshire Blvd., were “so favorable that the district will be able to save money in the initial years of the lease” even while continuing to make payments on the Mid-Wilshire building. However, the panel, which conducted its review with the help of the Price Waterhouse auditing firm, recommended that the district review its policies for obtaining space and hire a professional relocation consultant for future needs.

The district bought the building at 4050 Wilshire Blvd. late in 1990 for $12.5 million but never moved in. A rapidly softening real estate market and a chance to cut operating costs during the state’s recession led trustees to authorize the building switch in the spring of 1993. The swap became a issue in board elections that spring.