Today the city finalized its agreement with Related Cos, allowing the Grand Avenue developer to defer a $250,000 a month penalty related to ground-breaking delays on the downtown mixed-use project. According to a press rep in Los Angeles County Supervisor Gloria Molina's office, the deal allows Related Cos to defer penalties for two years or until ground is broken. For example, if it takes Related Cos two years to break ground, they'll owe the city $6 million. Additionally, Related Cos agreed to pay $100,000 a year to the Grand Avenue Committee, the group overseeing the project, to help defray various administrative costs. While last Sunday was the deadline for the New York developer to start construction on its Frank Gehry-designed $3 billion condo and retail project, the developer has recently stated that the financial markets make securing loans for the project impossible. Separately, Supervisor Michael Antonovich has called for a status report on the oft-delayed project.
· More Delays for Downtown's Grand Avenue Project [Curbed LA]
· Official: Fine waiver unlikely for LA developer [AP]
· Grand Avenue developer might avoid penalties [LA Times]