Building Trades News

Downtown LA Project Brings Jobs to Labor and Community

by Gary Phillips
Contributing Writer

Construction on the Grand Avenue Project in downtown Los Angeles is finally set to begin in April, despite the current economic slow down and following months of delays.
The project was put back on track after a new investor, a Dubai-based fund, recently put up $100 million for construction. An early investor, California Public Employees Retirement System (CalPERS), had to pull its funds because it was too heavily leveraged in the downtown real estate market. But the delay had a silver lining – it gave architects extra time to refine designs for the project's first phase, which includes a 48-story hotel and condo tower, a 19-story apartment and condo tower, and a park.

The Grand Avenue Project is a $3 billion destination development and a vital part of the revitalization of downtown Los Angeles. This revitalization has seen the construction of the union-built Nokia Theater that opened late last year as part of the Staples Center L.A. Live project, a Ralphs supermarket at 7th and Flower Streets, the Walt Disney Concert Hall, new and converted lofts, with venues such as the Conga Room and high-end restaurants like the Farm on the way.

In 1998, downtown had 18,700 residents, but today some 30,000 Angelinos live there, with another 12,800 estimated to flock to the area in the near future, according to Carol Schatz, president and CEO of the Central City Association.

he Grand will have mixed-use housing, with retail on the bottom floors and residents in the upper floors – with a total of some 2,600 new housing units projected. Twenty percent of those units are to be set asides for below market income households (a total of 532 such units over the Project's three phases of construction assuming maximum buildout). The Grand will also include restaurants, entertainment venues, a five-star hotel, and a 16-acre park that would stretch from the Music Center on the west end to City Hall on the eastern end.

This 3.6 million square feet development translates into 29,000 construction jobs on and off-site, including direct and in-direct, 5,900 long-term jobs in the new facilities, plus unionized Department of Parks and Recreation personnel maintaining the new park.

Estimates are that Grand Ave. will generate $35.6 million annually in local, county and state taxes. The land is leased under a long-term deal by the developer, Related Cos., from the county and city via the Community Redevelopment Agency. A Grand Avenue Committee will assist in the implementation and completion of the project.

Since it was first proposed several years ago, The Grand has faced various hurdles and delays, including the size of the project, a land-lease proposal that some members of the community found controversial, and investment challenges. But now all systems are go and the project will proceed on schedule.

s Bill Witte, Chief Executive of Related California, which is overseeing the project, recently stated, "We feel very good about where it is now."
An estimated 3,025 full-time equivalent direct construction jobs will be generated over the four-year period of building Grand Ave. In addition, the project will employ sustainable building methodologies and technologies – including water saving fixtures, drought resistant plants, and installation of forced heating systems.

Related California has also agreed to meet stringent environmental guidelines through Leadership in Energy and Environmental Design (LEED) certification whenever possible. The developer and its sub-contractors will also make good faith efforts in outreaching to minority- and women-owned business in the three phases of construction.

A local hiring plan has been hammered out between the concerned parties, including community organizations.

This is a great opportunity for the building trades and the community," said Robert Smith, Political Director of IUPAT, District Council 36. "The Grand Avenue Project will provide jobs for craft union members, and we are also building alliances with organizations and individuals in the surrounding community who will be an important base of support for future projects."

Let's also keep in mind some of our members live in these high-impact areas as well," Smith added. "This is win-win all around."