The Los Angeles Business Journal reports that Related Cos is planning to ask the city to extend its deadline--from February 2011 to February 2013--to start construction on the Grand Ave project. A possible extension would mark not only another delay for the Frank Gehry-designed hotel/condo/retail project, but also means that "the joint city-county authority overseeing the project could terminate its agreement with the developer, killing Related’s deal." Of course, if they got that extension, it doesn't meant that Related Cos would wait till 2013 to start building--they could start anytime between before 2013--but it sounds like the developer isn't so bullish on the downtown luxury condo market coming back anytime soon. Witte says that even if Related Cos had the financing right now, the developer wouldn't want to build. Via the paper: “More than the financing, the real estate market in general is depressed,” Witte said. “The numbers wouldn’t work today. That’s true of any market-oriented project, not just one on the scale of Grand Avenue.” Two different downtown development-related experts weigh in, giving opinions on when they think the condo market is coming back. Meanwhile, tied in with all of this is the land for the proposed Eli Broad museum, which'll also be used by Related Cos as a possible negotiating chip in asking for its extension, according to the paper.
· Another Delay For Grand Ave.? [LABJ]
· Grand Ave Archives [Curbed LA]