2 Panels OK Playa Vista Tax Credits

The developers of the proposed Playa Vista project, which includes the DreamWorks SKG studio, would get up to $35 million in city tax credits for creating 21,000 jobs under an agreement endorsed Monday by two City Council panels.

The full council will consider the incentive package Wednesday.

“This is one of the best deals the city has every gotten,” said Councilwoman Ruth Galanter, whose district includes Playa Vista. “They are going to create thousands of permanent jobs.”

Galanter said approval of the incentives package was one of the last remaining obstacles to DreamWorks finalizing escrow on 47 acres of the 1,087-acre Playa Vista development.

The firm, founded by director Steven Spielberg, studio executive Jeffrey Katzenberg and entertainment mogul David Geffen, hopes to break ground on the project by the end of this year, according to spokeswoman Wendy Gruel.

“We are excited about having our new home in the city of Los Angeles,” Gruel told the six council members who held the joint session of the Budget and Finance Committee and the Community and Economic Development Committee.

Under the agreement recommended by the two panels, Playa Capital, the partnership responsible for the overall development of Playa Vista, would receive up to $5,737 annually for each permanent job created during the next 30 years. The payments would be rebated from business license taxes, utility users taxes and developer fees paid to the city from the 1,087-acre development .

A credit of $8 million will be established up front, and will be used in lieu of paying up to 50% of the development fees.

A separate agreement requires DreamWorks to stay in Playa Vista for 25 years in exchange for the credit package. DreamWorks would receive its credits through Playa Capital.

Under the job incentive agreement, 30% of Playa Vista’s employees will be Los Angeles residents. The agreement is part of a larger package of city subsidies, including $10 million offered for improving transportation in the area.

DreamWorks is the anchor of a larger development proposed by Playa Capital, which includes a total of 5 million square feet of office and commercial space. The project includes a Playa Vista Media District, which will also be home to other multimedia firms.

“Our initial commitment is to provide a thousand jobs down at the site, related to the permanent campus for DreamWorks,” said Andy Spahn, another representative of the studio.

All told, the Playa Vista development is expected to create up to 21,000 jobs, according to Chief Legislative Analyst Ron Deaton.