This Sunday is the deadline for developer Related Cos to start construction on its Frank Gehry-designed $3 billion condo and retail Grand Avenue development. Last year, the New York-based developer agreed to pay $250,000 in monthly penalties to the city if ground wasn’t broken on the project, but has recently stated that the financial markets make securing loans for the project impossible. After a series of talks this weeks, it looks like those penalties will be deferred, reports the Associated Press. “They would like a waiver, but we're looking at more of a deferral," said Gloria Molina, Los Angeles County Supervisor, who also chairs the committee Grand Avenue project. More via the Los Angeles Times:
“Some financial experts said waiving the fees may well be necessary to keep the project alive because it could be months before Related can secure the sizable construction loan it needs. The firm might not be willing to pay what could be millions to keep the Grand Avenue project going, said economist Jack Kyser of the Los Angeles County Economic Development Corp. "If they had to pay it now, that might be a break," he said. "It might cause them to reconsider the project." Los Angeles isn’t the only city where Related is delaying construction: In New York, the developer and the Metropolitan Transportation Authority agreed last month to delay a $43.5 million closing fee on Hudson Yards, a 26-acre complex Related agreed to buy from the MTA last year. Related will pay $8.6 million for the one-year closing delay, according to our overachieving New York brother.
· Official: Fine waiver unlikely for LA developer [AP]
· Grand Avenue developer might avoid penalties [LA Times]