LOS ANGELES | Downtown Project Rundown 6.0

[SoCalKid]

Originally Posted by Zapatan

I assume rentals (aside from being maintenance heavy) are a better bet financially in the long run although condos probably make cash back quicker, less risky for renters too.

If Mack's building won't happen anytime soon I'm guessing Mitsui won't either unless there is a special reason to build it.

Rental buildings are considered less risky and are preferred by developers and investors for two main reasons:

- Defect liability: the developer is responsible for construction defects for 10 years. This has created an entire cottage industry of lawyers who go to HOAs 7-9 years after a condo building is built and convince them to sue the developer. This typically happens even if the condos were very well built - they just find a bunch of random things to throw at the developer, and they end up settling in court. For this reason, developers have to hold back cash for 10 years or buy expensive insurance against these claims.
- Market timing: if you build a rental building and it opens during a bad market period, fine, you just rent it out at whatever rate you can, push rental rates up when the market recovers, then sell the building. But if you open a condo building during a bad market period you get crushed since you only have one shot to sell the units. And you can't just hold on to the units in hopes of better future pricing since you have a loan, property taxes, insurance, maintenance, etc. that you need to cover.

[craigs]

L.A. backs $2.6 billion Convention Center expansion, amid major warnings about the cost



David Zahniser, Noah Goldberg
Los Angeles Times
September 19, 2025

• Los Angeles City Council voted 11-2 to approve a $2.6 billion Convention Center expansion despite warnings about serious financial risks.
• The project could drain over $100 million annually from the city’s general fund, which pays for police, firefighters and other essential services.
• Construction must begin immediately to meet the 2028 Olympics deadline, when the facility will host judo, gymnastics and other competitions.
  

L.A. political leaders took what their own policy experts called a risky bet on Friday, and agreed to pour billions of dollars into the city’s aging convention center in the hope that it will breathe new life into a struggling downtown and the region’s economy. In an 11-2 vote, the City Council approved a $2.6 billion expansion of its Convention Center, despite warnings from their own advisers that the project will draw taxpayer funds away from essential city services for decades to come.

The risks don’t stop there. If the Convention Center expansion experiences major construction delays, the project’s first phase may not be finished in time for the 2028 Olympic and Paralympic Games, when the facility is set to host judo, gymnastics and other competitions. That, in turn, could leave the city vulnerable to financial penalties from the committee organizing the event, according to the city’s policy analysts.

Those warnings did not discourage Mayor Karen Bass and a majority of the council, who said Friday that the project will create thousands of jobs and boost tourism and business activity, making the city more competitive on the national stage. “If we’re not here to believe in ourselves, who’s going to believe in us?” said Councilmember Adrin Nazarian, who represents part of the San Fernando Valley. “If we don’t invest in ourselves today, how are we going to be able to go and ask the major investors around the world to come in and invest in us?”
. . . .

[SoCalKid]

Despite the financial risks, I'm really glad the City Council made this decision. It's very frustrating that they waited so long that the project won't be done before the Olympics, but I'm glad it's finally going forward.

This plus Oceanwide (hopefully) getting finished plus the recent Chick Hearn plaza should really help make this area of South Park a world class sports, entertainment, and events district.

[LA21st]

Yea, its risky but they have to help downtown. They ignore the basics to revive the area far too much. But they made the right call.

[scania]

How about another major step in the right direction!!!

[craigs]

Originally Posted by scania

How about another major step in the right direction!!!

Hush, now. This thread is only about directing our focus onto relentless negativity. I'm waiting for the first post that characterizes this as a negative, and it won't be long. But when a good thing happens in downtown LA, the nattering nabobs of negativism in the Downtown LA Projects & Construction thread go silent. They brayed for this, and now it's going to happen, so they will ignore that the people they hate did what they demanded and move on to another complaint.

[citywatch]

Originally Posted by craigs

Those warnings did not discourage Mayor Karen Bass and a majority of the council

not a second too soon....no less will do!....current trends are giving both outsiders & burbanites in Socal a feeling that ppl in LA, particularly at city hall, don't care about dt or the city in general.

A vid posted yesterday about LA's movie industry...where the vlogger was walking through largely inactive studio soundstages...gave a rundown on how many TV & movie productions have left LA. He interviewed Mel Gibson who said he wanted to film just one day in LA but flying workers to eastern europe for 3 days of work was actually cheaper.

Fiona Ng, LAist

Near the corner of First and Hill streets is a palm tree sitting all by its lonesome in a pot. Sunshine is a scraggly 50-footer not unlike the region’s other queen palms. But to its biggest champions, it’s special and deserves a forever home.

That patch of dirt will be the site of the expanded Colburn School of Music, which broke ground last year to construct a new building at that corner. That patch of dirt also happened to be hallowed ground of sorts, according to architecture historian Nathan Marsak, author of Bunker Hill Los Angeles: Essence of Sunshine and Noir and a longtime friend of Esotouric. Marsak, in a blog post from 2008, had identified that very bluff of dirt as a last "remnant" of a bygone Bunker Hill, a leftover chunk of a bona fide hillside that was razed to make way for parking lots at around 1935.

"Trees really serve as living monuments that anchor a community's identity, anchors their history and connect generations," Marsak said. "Here's this wonderful tree that has somehow survived everything being torn down around it."

Since first finding out about the Colburn school's expansion plans, the crew of Sunshine evangelists has been trying to find her another home. They enlisted Colburn and the construction company behind the expansion project to agree to pot the queen palm, and to move it to another part of the construction site near the intersection of First and Hill.



Google Maps screenshot, LAist


Fiona Ng, LAist

[Illithid Dude]

Thank god. I'm glad at least one good thing is happening to downtown.

[craigs]

Originally Posted by Illithid Dude

Thank god. I'm glad at least one good thing is happening to downtown.

Regionally, downtown can best handle large groups of visitors. An expanded convention center will draw more and larger conventions that can help fill downtown's hotels, bars, restaurants, etc. That is great for downtown and also for the city overall, as it will generate additional revenue. It is indeed a positive development.

[Illithid Dude]

Was just downtown. Much of it looks very dilapidated and filled with homeless. Little Tokyo, however, was absolutely packed with people. Really great atmosphere there that I would love to see captured around the rest of downtown.

[Zapatan]

Originally Posted by Illithid Dude

Was just downtown. Much of it looks very dilapidated and filled with homeless. Little Tokyo, however, was absolutely packed with people. Really great atmosphere there that I would love to see captured around the rest of downtown.

It's so sad what's happened. LA needs new leadership quick, especially if the city is going to host the Olympics.

I wonder what will come of the 2026 mayoral election.

[Radio5]

Originally Posted by Illithid Dude

Thank god. I'm glad at least one good thing is happening to downtown.

I think this may bite us in the ass in the future. The city controller put out a video on his instagram saying LA is dipping into it's reserves, now only has 300m. And they would have to pay 100m a year to cover the CC. Unless a miracle happens, not looking good

[Illithid Dude]

Originally Posted by Radio5

I think this may bite us in the ass in the future. The city controller put out a video on his instagram saying LA is dipping into it's reserves, now only has 300m. And they would have to pay 100m a year to cover the CC. Unless a miracle happens, not looking good

I've thought about this as well. Let's face it, Karen Bass is not a proactive mayor. However, another mayor may be. There are ways for a city to increase revenue if those in charge wish to do so. Look at New York. The city was broke in the 70s and is thriving today. I personally think that if Los Angeles streamlined it's bureaucracy it could save a significant amount of money. I've always been wondering if it's time to let a casino into the city. I could easily imagine one sprouting in Hollywood, for example. And of course, the easiest way to earn money is to approve lots of new residential construction, which hopefully our next mayor will be interested in accomplishing.

[scania]

Originally Posted by citywatch

not a second too soon....no less will do!....current trends are giving both outsiders & burbanites in Socal a feeling that ppl in LA, particularly at city hall, don't care about dt or the city in general.

A vid posted yesterday about LA's movie industry...where the vlogger was walking through largely inactive studio soundstages...gave a rundown on how many TV & movie productions have left LA. He interviewed Mel Gibson who said he wanted to film just one day in LA but flying workers to eastern europe for 3 days of work was actually cheaper.

My god! You are incredible. Try changing your YouTube algorithm. There are plenty of vids tha have positive things to say about the film industry. And also how things have picked back up.

[citywatch]

Originally Posted by Illithid Dude

Little Tokyo, however, was absolutely packed with people. Really great atmosphere there that I would love to see captured around the rest of downtown.

this proj in little tokyo near LA city hall since 2020 has been the slowest moving devlpt. It had one name & sales agency awhile ago & now has a different name managed by a different company. I don't know if condos compared with rentals work in today's economy in dtla.


hirohouseliving.com


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^ that's the odd thing about dtla....on one hand it's priced too high, on the other hand it's priced lower than other sections of LA are, particularly towards Santa monica.

Century City has long had higher rental commercial rates than dtla, but certain corporations choose it over dtla. So CC over the past 10 yrs has been able to see one of the few new highrises for office space go up in LA, while dtla has been mainly residential.

The subway from dt to westwood will make it less excusable for so many businesses in socal to avoid dtla as a location....but the safety & cleanliness of both transit & the location it's going to are of major importance. If LA city govt & influencers in dt & LA in general can't resolve that problem, then the burbanization of the 1970s, 1980s is going to occur all over again.


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[craigs]

Originally Posted by citywatch

^ that's the odd thing about dtla....on one hand it's priced too high, on the other hand it's priced lower than other sections of LA are, particularly towards Santa monica.

Century City has long had higher rental commercial rates than dtla, but certain corporations choose it over dtla. So CC over the past 10 yrs has been able to see one of the few new highrises for office space go up in LA, while dtla has been mainly residential.

The subway from dt to westwood will make it less excusable for so many businesses in socal to avoid dtla as a location....but the safety & cleanliness of both transit & the location it's going to are of major importance. If LA city govt & influencers in dt & LA in general can't resolve that problem, then the burbanization of the 1970s, 1980s is going to occur all over again.

burbanization n LA s already complete rgdlss of what happens dt now. That is why cc is there, n all the other emplt centers. Govt & inflncrs won't change the sitch, but u r right that dt and the sbwy shd be cleaner.

[scania]

Originally Posted by Illithid Dude

Was just downtown. Much of it looks very dilapidated and filled with homeless. Little Tokyo, however, was absolutely packed with people. Really great atmosphere there that I would love to see captured around the rest of downtown.

These are simply straight lies. For someone who has nothing but negative things to say…why on earth would you come downtown? Ha DTLA this weekend was filled so much vibrancy and energy. So many clowns in this board. Again, great news about The Bloc. Lol

[Illithid Dude]

Originally Posted by scania

These are simply straight lies. For someone who has nothing but negative things to say…why on earth would you come downtown? Ha DTLA this weekend was filled so much vibrancy and energy. So many clowns in this board. Again, great news about The Bloc. Lol

I needed to buy some tea

[citywatch]

Originally Posted by craigs

burbanization n LA s already complete rgdlss of what happens dt now.

In certain ways, it actually was worse over 60 yrs ago....

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^ If today's dtla is not doing well, it was even more underwhelming in the past. however, the burbs of Socal back then were also less developed too. But issues of crime, vandalism & homelessness in dtla weren't as much of a problem in the 1960s.

Devlprs back then were in some ways even less active in dtla than they are right now. Ppl forget that real estate in LA was so weak, the city needed a redevlopment agency to encourage builders to do projs. But dt in 2025 is going through a lull all over again.

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[Illithid Dude]

I don't really consider any of Los Angeles from the Pacific Ocean to the LA River and from the 10 to the Hollywood Hills suburban or the suburbs. All of those contiguous cities and neighborhood make up our central urban core, and should be treated as such. Downtown isn't the central locus of Los Angeles and never will be. It's just one neighborhood amongst many. But as I care for all of Los Angeles, so do I care for downtown, and want it to be the best neighborhood it can be.