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  #1321  
Old Posted Feb 10, 2007, 2:57 AM
bobcat bobcat is offline
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The Buildings Are Unique – We Wanted to Make the Tax Savings Unique’
By Richard Clough - 2/12/2007
Los Angeles Business Journal Staff
Mark Weinstein

Born: Arcadia, 1958
Position: President, MJW Investments
Accomplishments: Spearheaded the $145 million, 800,000-square-foot Santee Village lofts projects and obtained Mills Act approval for individual condo buyers
On Getting Mills Act Approval: “It was a complicated process. It had never been done before and as we went along we were actually learning with the assessor.”

For developer Mark Weinstein, the idea was simple: If the owner of a historic building is entitled to tax breaks, then condo buyers in a historic building should get those same breaks.

This seemingly straightforward idea proved groundbreaking as Weinstein and his company, MJW Investments, adapted a piece of legislation more than three decades old for an entirely new and innovative use.

“It had never been done before,” Weinstein said. “It was complicated but we were persistent. We were told we couldn’t get it done, but we did.”

The Mills Act Program, enacted in 1972, was meant to provide tax relief for the restoration and preservation of historic buildings. The act had previously been used primarily by single-family homeowners and developers of commercial projects. According to the law, the benefit to the owner may be a “substantial reduction in property taxes,” while the benefit to the city is the preservation of historic resources.

For more than 30 years after state Sen. James Mills penned the law, no developer tried to apply it to individual units within a single building. But Weinstein reinterpreted the legislation when he began developing several Fashion District buildings into what would become the largest adaptive reuse project in Los Angeles – the Santee Village lofts.

“We looked at Santee Village as being a unique project, so we asked, ‘What value-added propositions could we bring to the project? What could we do to distinguish ourselves?’” Weinstein said. “The buildings are unique – we wanted to make the tax savings unique.”

The buildings were all constructed during the 1910s or 1920s in an area teeming with textile manufacturing buildings. After a long and complicated approval process, Weinstein and his company managed to pass the tax savings along to the buyers by having the Mills Act applied to the individual condos.

Weinstein’s innovative use of the act could save Santee Village condo buyers as much as 50 percent to 70 percent on their property taxes, amounting to thousands of dollars annually. And with this reduction, some buyers could afford a mortgage that’s higher by as much $100,000. It’s been an attraction to buyers in project where units range from $300,000 to $500,000.

“We’ve been doing no advertising and we’ve basically sold out,” said Weinstein, noting that at least one of the buildings would not have been included in the development project if not for the Mills Act tax relief. “It’s probably the single most powerful incentive that drives people to Santee Village.”

Carol Schatz, president and chief executive of Central City Association, said Weinstein’s contribution to the downtown housing market has been “pretty extraordinary.” When most developers stayed away from the Fashion District, she said, Weinstein pushed ahead with an ambitious plan.

“I think he thought that downtown was ripe for housing for a younger, hipper clientele tired of the suburban lifestyle,” Schatz said. “He saw the potential early.”

Santee Village will include seven buildings of 445 for-sale and rental units. Three of the buildings opened in 2004 as Santee Village lofts and another opened in late 2005. The three remaining buildings are set to open by August 2007.

With the success of Santee Village, other downtown projects in the pipeline have tried to use the Mills Act to similar ends. The Rowan Lofts and the Tomahawk Building Lofts have both sought Mills Act approval, according to the Los Angeles County Assessor’s Office.
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  #1322  
Old Posted Feb 13, 2007, 12:54 PM
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Does anyone know the status of the Gansevoort Hotel? It looks like it just sits there and is becoming an eyesore. The website indicates it is "coming soon". This hotel will have an amazing impact on the area near South Park and the Historic Core.
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  #1323  
Old Posted Feb 21, 2007, 3:51 AM
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California.construction.com

Feature Story - February 2006

Empty Office Building Finds Some Love:
1100 Wilshire Converted to Condos


By Greg Aragon

The 22-story triangular spire, hovering over the west side of the 110 Freeway in downtown Los Angeles, sat virtually vacant for nearly 20 years before a trio of developers bought it in 2004. Next month, completion of the $50-million project will produce 230 high-end condominiums in about 260,000 sq. ft. of living space. It took nearly 20 years of neglect before a 37-story office building near downtown Los Angeles found some loving developers.

"We are excited about this project," said Greg Vilkin, president of Los Angeles-based Forest City West Residential. "Being on the west side of the 110 Freeway, it has the best views in Los Angeles-360 degrees in every single unit."

The tower, dubbed 1100 Wilshire for its address, is a 430,000-sq.-ft. (259,469 sq.-ft. of living space) building on the southwest corner of Wilshire Boulevard and Bixel Street that was built in 1986 as the Rolls Royce Office Tower. It remained practically vacant until Forest City, along with MacFarlane Partners and TMG Partners, both of San Francisco, purchased it in July 2004 for $40 million from Format Corp., a subsidiary of Taiwan-based Formosa Plastics.

"Unfortunately for the former owner, 1100 Wilshire was completed when there was an overabundance of newly completed office space and just before the recession of the early 1990s, both of which dramatically affected the office market in downtown Los Angeles," said David Dressler, chief acquisition officer for MacFarlane Partners. "In addition, the property was at a disadvantage relative to other office buildings nearby because it is separated from the main financial district by the 110 Freeway. It was probably hard to attract a lot of large tenants on a long-term basis."

The $50-million project consists of the conversion of the 496-ft.-tall structure into 230 luxury condominiums for sale and 11,000 sq. ft. of lower-level retail for lease. Floor plans range from 788 sq. ft. for studios to 3,466 sq. ft. for four penthouses. One bedroom, two-bedroom and two-story loft-style plans also will be available, as well as custom layouts, Vilkin said. Prices range from the high-$400,000s to nearly $2 million. Irvine-based Thomas P. Cox: Architects Inc. and Los Angeles-based AC Martin Partners are the project architects. Webcor Builders of San Mateo is the general contractor.

Unlike boxy Los Angeles high-rises, 1100 Wilshire is distinguished by a 22-story triangular tower-clad in blue-green mirrored glass that is perched on top of a 15-story granite and concrete parking structure. Vilkin said rerouting the plumbing systems posed the greatest challenge. "On every floor, and when you do 12 units per floor, you have 24 cores for bathrooms and kitchens," he said. "You have to re-core the building 37 stories high."

Ken Wipff, Webcor's senior project manager, said, "You basically have to stack up all the bathrooms" from the bottom floor to the top. "You don't want horizontal runs in your plumbing because if you take the plumbing down through a floor, you are basically in the ceiling of the residence below," he added. "You don't want to have to go into somebody's bedroom and say, 'Hey, I need to get into your ceiling to snake out my plumbing.' So everything has to be vertical."

With 350 bathrooms, as well as a myriad of holes for kitchens, heating, cooling and electric, Wipff said the project required more than 300 cores on every floor. He said crews used a laser to precisely line up all the holes on the tower's 22 floors. "What we did was lay out a typical floor, drill the holes where we want them, confirm that is where we want them and then use a laser to laser down and up," Wipff added. "What is interesting about this is that if you stand on the bottom floor and look up, you look up 22 floors with 6-in. cores that are dead on."

The conversion began with interior demolition in September 2004 and will be officially complete next month. Currently, the condos are 70 percent sold, with homeowners starting to move in. Vilkin said he expects to have that the rest of the units sold by the end of the quarter. As of December, no retailers had signed leases, he said. But that should change soon since several major residential projects are coming out of the ground just east and southeast of 1100 Wilshire, which should create the critical mass of residents needed to lease additional retail space.

Because the first livable floor is being built on top of the 17-story parking garage, residents of 1100 Wilshire will have panoramic views of downtown Los Angeles to the immediate east, the Hollywood Hills to the north and the San Gabriel Mountains to the north. And these vistas have been secured by city zoning changes already in place when 1100 Wilshire was built, which prevent new high-rise construction in the vicinity.

The 1100 Wilshire complex includes 700 parking spaces in four subterranean and 11 above-grade levels. About 570 spaces are earmarked for residents, and 130 spaces are set aside for visitors. Vilkin said that tenants will be given one unreserved parking space per bedroom and the rest of the spots will be for sale for between $10,000 and $20,000 each.

Because the structure was built as an office building "we have twice as much parking as would be required [for a ground-up residential project]," Vilkin said. "And what is unique is that we are selling the parking in this building separate and apart from the condos."
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  #1324  
Old Posted Feb 21, 2007, 4:05 AM
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^ disregard the value of the above story. Times goes by so fast that I forgot it's Feb 2007 today, not 2006.

I read somewhere that up to 40% of the condos in 1100 may still be available for sale, so the proj's spokesman Greg Villkin probably was wayyy too optimistic about a yr ago.
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  #1325  
Old Posted Feb 21, 2007, 4:08 AM
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Downtown Los Angeles Residential Boom Reaches Double-Digit Growth, According to New Report
Tuesday February 20, 1:30 pm ET
Data From Downtown Center Business Improvement District Shows 21% Jump in New Residents, Number of Businesses Climbs 8.5%

LOS ANGELES, Feb. 20 /PRNewswire/ -- A new report issued today by the Downtown Center Business Improvement District (DCBID) shows that Downtown Los Angeles' residential and commercial development is growing at an unprecedented pace. The number of new residents jumped 21 percent from 2004 to 2006, while the number of business establishments increased 8.5 percent from 2005 to 2006.

The DCBID commissioned the Downtown Los Angeles Market Report and 2006 Demographic Survey of New Residents to assess the overall economic growth of the area and the economic power of the new residential population. The report is composed of two key components: a comprehensive market profile and a survey of new Downtown residents who have moved to the area since 2000. The Los Angeles County Economic Development Corporation (LAEDC) prepared the Market Report, and assisted the DCBID in performing the Demographic Survey. Surveys were delivered door-to-door by the DCBID.

"Downtown Los Angeles is rapidly developing into a vibrant, diverse residential community where people can live, work and play," said Carol E. Schatz, President and CEO, Downtown Center Business Improvement District. "The enormous increase in residents is now propelling a similar growth spurt in smart businesses looking for a great, educated workforce and retailers seeking a growing population with disposable income."

In addition to the 21 percent population rise, the 2006 Demographic Survey reflects Downtown residents' growing economic power in L.A. County. LAEDC compiled data from interviews with 931 new residents during the 4th quarter of 2006. Highlights include:

* The median annual household income was approximately $99,600, compared
to the 2004 median of $96,300. The percent of households with incomes
more than $200,000 increased to 14.6 percent in 2006, up from 8.8
percent n 2004.

* Downtown residents were among the best educated in the county with more
than three-quarters (76.1 percent) holding college degrees. Almost
half (48.5 percent) had undergraduate degrees, while 28 percent earned
graduate or professional degrees.

* More residents seem to own homes in 2006 versus 2004 as the number of
housing units owned increased from 18.6 percent in 2004 to 30.2 percent
in 2006.

* Almost two-thirds (65 percent) of Downtown residents were employed on a
full- or part-time basis, while 18.9 percent were self-employed and not
students. Of those surveyed, 37 percent reported that they were
professional or senior-level staff, while 21.7 percent said they were
senior level executives or managers.

In addition to determining the characteristics of new Downtown residents, the survey also polled residents about their preferences for services and their transportation needs. Results revealed that movie theaters; book, music and video stores; and restaurants were the top three most desired retailers. Respondents also wanted a re-introduction of the trolley system into the Downtown public transportation system.

The Market Report was compiled from a variety of public and private data
sources, as well as specific data gathered by LAEDC. In addition to the
8.5 percent increase in business establishments, other significant findings
are:

* Taxable retail sales totaled nearly $1.7 billion from 2005-2006, up
7 percent from the previous year.

* Average annual wage in Downtown Los Angeles in 2005 was $57,354, the
second highest in L.A. County after the Westside.

For the report, Downtown Los Angeles was defined as roughly bounded by the 101 Freeway to the north, the Los Angeles River to the east, the 10 Freeway on the south, and 110 Freeway to the west.

To view the complete report, please log on to www.downtownla.com.
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  #1326  
Old Posted Feb 21, 2007, 6:46 AM
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Smile More than half of downtown dwellers live alone

[QUOTE=bobcat;2643065]Downtown Los Angeles Residential Boom Reaches Double-Digit Growth, According to New Report
Tuesday February 20, 1:30 pm ET
Data From Downtown Center Business Improvement District Shows 21% Jump in New Residents, Number of Businesses Climbs 8.5%


LOS ANGELES -- While most downtown Los Angeles residents are young, educated, well-paid singles, more young families are moving to the city's core, according to a report released Tuesday.

More than half of downtown dwellers live alone. Their median age is 31, and the median income was $99,600 last year, up 3 percent from the median of $96,300, according to the Downtown Los Angeles Market Report and 2006 Demographic Survey of New Residents.

"This is very comparable to what we find in pioneer neighborhoods all over the country," said Carol Schatz, president and CEO of the Downtown Center Business Improvement District, as well as head of the Central City Association. "We start with a sort of young, hip, creative class and, hopefully, then you start bringing in empty-nesters and small families."


The report, commissioned by the Downtown Center Business Improvement District, also shows that commercial development is growing steadily.

The number of new residents jumped 21 percent from 2004 to 2006 -- about a quarter of whom moved from the city's affluent Westside.

Additionally, more businesses moved into downtown's high-rises over the last two years, according to the study. Downtown's office vacancy rate stood at 14.3 percent in 2006, compared with a 29 percent vacancy rate in 2004.

"In the late '90s ... there wasn't a lot happening in downtown, and we determined that the way were going to create the need for retail was to create a critical mass of residents, which we are doing," Schatz said.

The report also found that more than 55 percent of those living in downtown also work in the neighborhood, which results in fewer traffic jams on the region's freeways.

More downtown residents own their homes, according to the study, which cites that the number of housing units owned increased from 18.6 percent in 2004 to 30.2 percent in 2006

"We knew people would begin by renting, putting their toe in the water to make sure this was a place they wanted to live," Schatz said. "As they determined that downtown was a place where they wanted to live, they started to buy."

The increasing number of people living downtown was attributed to a sense of rediscovering an area once thought lost to crime and poverty, according to Schatz.

"I think people had written off downtown as a place where people wanted to live," she said. "Now, they want to be on the ground floor of something that's cool and different and making a real city."

The report looked at the area between the Hollywood (101) and Santa Monica (10) freeways, and the Harbor (110) Freeway and the Los Angeles River.

The study also found:

Downtown residents were among the best educated in the county, with more than 76 percent holding college degrees
Taxable retail sales totaled nearly $1.7 billion in fiscal 2005-06, up 7 percent from the previous year
Almost two-thirds of downtown residents were employed on a full- or part-time basis, while 18.9 percent were self-employed and not students
More than a third reported being professionals or senior-level staff, while 21.7 percent said they were executives or managers

The next project of the downtown business improvement district will focus on attracting more grocery stores, affordable restaurants and possibly keep the city-operated DASH buses running later.

Jack Kyser, chief economist for the Los Angeles County Economic Development Corp., said the report should help the business improvement district -- a coalition of property owners who agree to assess themselves to pay for services above and beyond what the city delivers -- attract and retain retailers, who are sometimes quick to write off downtown Los Angeles.

"Downtown residents have a lot of disposable income," Kyser said. "Any retailers looking for new opportunities need to look at this market very closely because I don't think they quite understand what's going on here."

In June, Ralphs will open its first downtown store since the chain started in the area.

Still, more than 84 percent of the survey's respondents said they also wanted a Trader Joe's, while 65 percent listed Whole Foods as their grocer of choice.

"There are 28,900 residents in downtown, so there's more than enough of a population to support Ralphs, and possibly a second supermarket sometime in the near future," Schatz said.

The Downtown Center BID will also launch its "Stay Open and We Will Come" initiative later this year as part of an effort to establish a nightlife in downtown Los Angeles.

"This is now a 9 a.m. to midnight downtown," Schatz said. "I'm hoping that, by the time I retire, it's a 24-hour downtown ... and it's getting there."

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  #1327  
Old Posted Feb 21, 2007, 3:28 PM
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The La Times Story Re: Downtown Population Growth ^

Downtown L.A. has gained people but lost jobs, report says

The population has jumped 20% in two years, although retail has been slow to follow.
By Cara Mia DiMassa, Times Staff Writer
February 21, 2007

L.A. Live
click to enlarge

Photo Gallery
Grand Avenue Project


Downtown L.A. is beginning to look more like uptown — and it's happening much more quickly than even its biggest boosters could have imagined.

A new study of downtown population and job trends, announced Tuesday, reported a more than 20% jump over the last two years in residents, to 28,878.

And with 7,500 units under construction, that number could rise to more than 40,000 by the end of 2008 — rather than by 2015, the previous target for that population milestone.

The study, published by the Los Angeles Downtown Center Business Improvement District, underscores the boom in construction of luxury condos and rehabbed historic lofts around the city center.

But officials hope the number will help downtown boosters in their efforts to lure more retail — which many of the new residents say is lacking.

Some businesses — including grocery stores and bookstores — have said they are waiting to see whether the downtown residential community continues to expand even as Southern California's overall real estate market cools.

"Hopefully, what it indicates is the ability to support more neighborhood amenities," said Councilwoman Jan Perry, who represents downtown, "another grocery store, more things you would want in your immediate area."

The big test, Perry and others said, is whether they can lure the big-name retailers that have so far steered clear of downtown.

A Ralphs grocery store is scheduled to open there in June, but many of the residents surveyed said they wanted a Trader Joe's or Whole Foods store as well.

While the report painted a rosy picture of residential growth, job growth was another story.

The study found that the number of jobs downtown continues to lag — a holdover from an era when government jobs downsized and corporate headquarters left the city center. Downtown payroll numbers for 2005, the last year available, show a total of 418,000 — down from a high of 605,000 in 1995.

But Jack Kyser, chief economist and senior vice president of the Los Angeles Economic Development Corp., which prepared a portion of the report, said the trend may be reversing, as the number of jobs in downtown began to climb in the first quarter of 2006.

"Employment in the private sector is growing again," said Kyser. "That's very, very important. That reflects workers in construction, that kind of activity."

Carol Schatz, president of the downtown Business Improvement District, said the report underscores the progress downtown has made — but she acknowledged the area still has a way to go before it becomes the 24-hour hub that many of its backers desire.

"This is now a 9 a.m. to midnight downtown," Schatz said, alluding to the large number of bars and restaurants. "But hopefully, by the time I retire, it will be 24-hour. We'll add an hour a year."

Two massive developments might speed up the process.

Much of the new downtown housing is rising around Staples Center, which will soon be home to the sprawling L.A. Live sports and entertainment complex. Work is scheduled to begin later this year for Grand Avenue, a $2-billion Frank Gehry-designed condo and retail hub next to the Disney Hall.

Both Grand Avenue and L.A. Live are billed as bringing more nightlife downtown — though it remains unclear whether it will encourage additional residential development elsewhere downtown.

The population and job numbers were produced by the L.A. Economic Development Corp. using private and public data.

The growth in the number of downtown residents — more of whom are purchasing their units — means they are gaining the political voice they've lacked.

Many residents have backed a recent Los Angeles Police Department initiative that brought 50 more police officers downtown to deal with the area's crime and drug problems, and that has so far helped reduce crime.

But the burgeoning housing market has heightened concerns that the revitalization could come at a cost for the city's low-income residents, many of whom have called downtown home for decades.

The loft boom in the old banking district has reached the corners of skid row, where some old residential hotels are being converted into market-rate housing.

The survey did not distinguish between market-rate units and those deemed affordable. And while it showed that the median income of households downtown was $99,600 — up from $96,300 two years before — only households with at least one income were examined, meaning it didn't count people living on public assistance.

Perry said that she and others would continue to make sure that downtown included mixed-income housing.

"That's not going to change," she said.

"It would be very stupid to focus the entire market on market-level housing…. You don't achieve a social equity purpose, either."
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  #1328  
Old Posted Feb 22, 2007, 10:09 AM
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Looks like the homeless issue is something that is being addressed appropriately by lawmakers and law enforcement officials. I believe that there is just too much invested this time around in Downtown (esp. the residential aspect where real estate value$ means so much more than office workers), that we may truly see a day when Downtown LA is significantly cleaned up.

---------------

Law would bar dumping patients on the street
Officials say 55 alleged cases on skid row are being investigated. A police crackdown starts.
By Richard Winton and Andrew Blankstein
Times Staff Writers

February 22, 2007

State and local officials will unveil proposed legislation today making it a crime to dump hospital patients on the streets, part of a new push by authorities who are investigating 55 cases of alleged dumping on L.A.'s skid row alone.

The move comes after a string of such incidents — including one involving a paraplegic man wearing a colostomy bag who was left in a skid row gutter — generated widespread outrage.

Authorities have struggled to build cases against those accused of doing the dumping, in part because there is no state law that expressly prohibits leaving patients on the streets.

The Los Angeles city attorney has filed criminal charges against just one hospital, Kaiser Permanente, saying the dumping of a homeless woman on skid row in 2006 amounted to false imprisonment. That legal strategy, however, has never been tested in court, and some legal experts question whether it will hold up.

The new legislation comes as authorities are stepping up their crackdown on dumping.

The Los Angeles Police Department put hospitals on notice Wednesday that officers would immediately arrest anyone they saw dumping patients on skid row, using the false imprisonment charge. The LAPD also plans to assign extra officers to look for evidence of dumping.

"Enough is enough," Capt. Andy Smith said. "We are going to book these guys."

At the same time, federal authorities said they are investigating two L.A. hospitals suspected of dumping the homeless.

Michelle Griffin, branch manager for the U.S. Centers for Medicare and Medicaid Services, said investigators were trying to determine whether the hospitals — which she would not name — violated the Emergency Medical Treatment and Labor Act and Medicare Conditions of Participation. Those statutes deal with the way hospitals treat and discharge patients.

If a hospital is found to be in violation of the act, it could be subject to discipline and civil penalties, possibly putting its accreditation and Medicare funding at risk, Griffin said.

"We take these allegations very seriously," she added.

The push to criminalize dumping comes amid a two-year campaign by city officials to halt the practice by hospitals, as well as by some outside law enforcement agencies that have reportedly driven criminals to skid row after they were released from custody.

Los Angeles is in the midst of an aggressive effort to clean up skid row, which has the largest concentration of homeless people in the Western United States. The campaign — which involved adding 50 police officers who over the last few months have made hundreds of arrests — comes as downtown is seeing a boom in luxury condo and apartment development.

The new legislation, by state Sen. Gil Cedillo (D-Los Angeles), would make it a misdemeanor for any hospital facility or worker to transport patients anywhere other than their residences without their informed consent.

Individual offenders could be punished by up to two years in County Jail and/or a fine of up to $1,000. Healthcare facilities that violate the law could be slapped with penalties of up to $10,000.

Jennifer Bayer, public affairs director for the Hospital Assn. of Southern California, said Wednesday that her group was concerned about any legislation that would criminalize or impose legislation on hospitals beyond their role of providing "acute medical care."

"The problem goes back to the lack of social services for homeless and indigent patients who end up in hospitals," she said. "We are already spending $2 billion in uncompensated care providing medical treatment for indigent patients. Imposing fines or arresting people is not productive."

Cedillo says his bill doesn't ask hospitals to address housing issues but is designed to stop them from contributing to the homelessness problem by failing to plan for discharging patients.

City Atty. Rocky Delgadillo said the proposed legislation would make prosecuting hospitals much easier for his office. He noted that the office built a case against Kaiser using the false imprisonment charge — and a second count of adult-care endangerment — but acknowledged it was a "creative" use of the law.

"We believe we are providing clarity in the law, and clarity in law is power to a prosecutor," he said. "Dumping a paraplegic man in the gutter of skid row without any ambulatory device in no more than a hospital gown demonstrates no shade of gray."

He was referring to the case of a 54-year-old man in a soiled hospital gown, his colostomy bag still attached, who was found two weeks ago crawling in the gutter after being dropped off in front of a park on skid row, far from services for the homeless.

Police say that as onlookers demanded help for the man, the driver of the van for Hollywood Presbyterian Medical Center applied makeup and perfume, before speeding off. The hospital said it is investigating the circumstances of the case but acknowledged that it didn't follow its own release policies.

Laurie Levenson, a Loyola Law School professor, said Cedillo's proposed legislation provides "a better fit for prosecution" than existing false imprisonment laws, because it's more specific.

But she also warned that such a law would be open to legal challenges — and might be hard to enforce. "It is not a magic bullet, but it gives some appearance of action," she said.

Bayer of the hospital association said officials can't solve a vexing problem such as homeless patients with a law.

"There are no easy answers," she said. "It's such a complex issue that everyone must work to solve."

The Kaiser case involved a 63-year-old patient who was discharged early last year from Kaiser Permanente's Bellflower medical center. A short time later, video at a downtown mission captured her stepping out of a taxi in gown and socks and then wandering aimlessly down San Pedro Street.

Kaiser has denied any wrongdoing, saying the woman was discharged by mistake. The hospital has also said it has since revamped release policies.

Meanwhile, the LAPD was investigating a report of another possible dumping case, involving a 53-year-old man who was found about 6 a.m. Wednesday wandering in circles at 4th and San Pedro streets. He was dressed in bedroom slippers, a tattered sweater and a hospital gown.

Police concluded, however, that the man wasn't dumped but rather walked out of a hospital on his own and trekked nearly four miles to downtown.

*


--------------------------------------------------------------------------------
richard.winton@latimes.com

andrew.blankstein@latimes.com
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  #1329  
Old Posted Feb 22, 2007, 3:40 PM
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Originally Posted by Codex Borgia View Post
The study found that the number of jobs downtown continues to lag — a holdover from an era when government jobs downsized and corporate headquarters left the city center. Downtown payroll numbers for 2005, the last year available, show a total of 418,000 — down from a high of 605,000 in 1995.

That explains why so much office space has become or remained vacant in the hood. Until that changes, there will be alot of pressure on the devlpt of new housing, in either converted or totally new bldgs, to plug up the gaps or in getting rid of deadzones.
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  #1330  
Old Posted Feb 22, 2007, 11:53 PM
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^ Wasn't the mid-90s the peak of Downtown's "boom?" I think that's when many large companies were actually headquartered in Downtown, but then merged and broke-up, leaving lotsa empty space which is now being filled up mainly by smaller office leases (like in the 10,000 or less square foot range, as opposed to 100,000 or more like City National Bank did). That makes it more difficult obviously to fill up the spaces (31 million square feet of Class A), but it DOES diversify the tenant mix throughout Downtown, making it more stable and less prone to another office bust. In other words, Downtown LA can be viewed as following what the rest of Los Angeles has become - a place where smaller businesses thrive.

I think as more amenities come online (esp. Ralphs and LA Live), the pace at which companies decide to lease Downtown office space will quicken. If we have a 13-14% vacancy right now, let's do a little math:

31,000,000 square feet of Class-A commercial office space

13% vacancy of that is ~ 4,000,000 square feet

So if we can start attracted companies like Herbal Life which is leasing out 60,000 sf from LA Live, then we can start filling in those spaces.

4,000,000/60,000 = 67 companies


Once an area starts to revitalize, and as more jobs are created, it's amazing how fast space can be filled up. Just look at the Westside, which is now almost entirely filled up!
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  #1331  
Old Posted Feb 23, 2007, 12:05 AM
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Originally Posted by LosAngelesBeauty View Post
I think as more amenities come online (esp. Ralphs and LA Live), the pace at which companies decide to lease Downtown office space will quicken.
That's what most real estate experts think. The Westside is where the offices are located because that's where the execs live and all the amenities are located. This article illustrates that fact but indicates that many believe that will change in the next few years.

WESTSIDE STORY: In L.A. legal market, downtown's no draw.(Los Angeles ). Kellie Schmitt.
The Recorder (Dec 22, 2006)


LOS ANGELES - When Karl Racine, the managing partner of Venable, set about opening a Los Angeles office earlier this year, one thing was certain: It had to be on the Westside.

"In meeting with clients and talking to lawyers, it was clear the activity was moving west," he said. "I would say 95 percent of the lawyers we spoke with about coming over were adamant about not being downtown."

Washington, D.C.-based Venable isn't the only newcomer to plant its stake on the Westside. At least four of the out-of-town Am Law 100 firms announcing moves into the L.A. market this year opted to skip the button-down downtown for the energy - and convenience - of offices in Century City or Santa Monica. The only newcomer to choose downtown was Richmond, Va.'s Hunton & Williams.

In an increasingly competitive market for laterals, many law firm leaders say it's important to offer key recruits an often-shorter commute to what some refer to as a "lifestyle" office.

The Westside "is considered to have more cache," said Stephen Bay, executive vice president of CB Richard Ellis, who works with law firm leases. "More of the decision makers live in places like Malibu, Bel Air and the Pacific Palisades and they don't want to drive downtown."

Driven by desirability and a shortage of space, rents for Century City buildings approach $50 a square foot, well above the $33 average downtown. But perhaps the hottest spot is Santa Monica's Water Garden - a building that houses Alschuler Grossman Stein & Kahan, Greenberg Traurig, and Perkins Coie and goes for upward of $50 a square foot per year, Bay said.

"Santa Monica is as prestigious as any space in the world - there's a lot of credibility to it now," said Stanton "Larry" Stein, an Alschuler partner who said he fought to have the soon-to-splinter firm relocate from Century City to Santa Monica several years ago. "It's really become the hub of the entertainment community and it's an amazing location."

Stein said the campus-like setting of lakes, ducks, seagulls and bridges is enough to calm even the most harried lawyers. Even though space is coveted there, Stein managed to secure the 5th and 6th floor for the Los Angeles outpost of the Dreier firm, a group he's planning to start up early next year.

For many of this year's L.A. newcomers, it was easier to entice laterals with a Westside office, they said.

"We were able to attract very good lawyers that we otherwise wouldn't get if we limited our search to people willing to go downtown," said Roger Warin, the chairman of Steptoe & Johnson, which opened in Century City this year.

Steptoe also brought in a handful of lateral hires from Alschuler Grossman to the new office.

"They didn't love us 3.5 to 4 hours worth a day," Warin said, referring to the time he estimates they would have spent in traffic had the firm been located downtown.

Douglas Emhoff said he was drawn to Venable's Westside office by the clients, culture and commute.

Even though there's an "ongoing urban renewal" in downtown Los Angeles, there is much more going on in the Westside, making it easier to meet clients for dinner after work, said Emhoff, who worked in Pillsbury Winthrop Shaw Pittman's downtown office for eight years.

But not all the traffic is one way. Over the summer, Pillsbury consolidated operations downtown and handed over its Westside space to Goodwin Procter, another of the year's newcomers.

At the time, incoming Pillsbury Chairman James Rishwain said Century City was a "redundancy" and consolidation gave the firm "a positive opportunity to serve clients under a single platform."

While some homegrown Los Angeles firms like Latham & Watkins don't have a Westside office, others like Gibson, Dunn & Crutcher and O'Melveny & Myers have dual locations.

For Gibson, Dunn, their 25-lawyer Century City office is more about serving clients than lawyers' lifestyles, partners say.

Gibson's entertainment clients such as investment banks, MGM and Twentieth Century Fox Film Corp. are based nearby, said partner Joel Feuer, who lives near UCLA in Westwood. At least a couple times a week, he meets in person with clients with offices nearby, he said.

Most of Gibson partner Jesse Sharf's clients are either on the Westside - or from out-of-town - and don't want to venture downtown for meetings, he said.

But even though he lives in Santa Monica and works in the Century City office, he said downtown is more enticing in terms of lifestyle, with more varied eating options, the Staples Center for basketball and hockey, and its proximity to Dodger Stadium.

"I think Century City is fairly sterile and suburban while downtown is more urban and interesting," Sharf said.

Law firm real estate expert Bay said the lines will be blurring as to what area has more cache as Los Angeles spruces up its downtown. With additions such as the Staples Center, L.A. Live and ESPN Zone -coupled with the tight market for space in Century City - plenty of real estate moguls are banking on a pricier future downtown.

In the past three years, the purchase prices for buildings in downtown has about doubled, even though the net rental costs have only surged by about 10 percent.

"If you follow the prices being paid for these buildings, they assume the rents will go up and tenants will be willing to pay those prices," Bay said.
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Old Posted Feb 23, 2007, 3:51 AM
RAlossi RAlossi is offline
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^ Interesting article, but not entirely accurate. Many lawyers live or practice in Glendale, South Pasadena/Pasadena, and the Foothill areas. Our court reporting firm does a great deal of its business with Downtown-based law firms.

The entire industry is really spread out as it is though, and DTLA can only hope to be ONE of the major centers for law firms. Beverly Hills, Century City, Downtown, Old Town Pasadena/South Lake Avenue, North Brand Boulevard in Glendale, Torrance, Costa Mesa, Encino, and Woodland Hills are all very big draws for law firms, and many have multiple locations to serve the different regions of SoCal/LA
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Old Posted Feb 23, 2007, 6:31 AM
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Quote:
Originally Posted by RAlossi View Post
^ Interesting article, but not entirely accurate. Many lawyers live or practice in Glendale, South Pasadena/Pasadena, and the Foothill areas. Our court reporting firm does a great deal of its business with Downtown-based law firms.

The entire industry is really spread out as it is though, and DTLA can only hope to be ONE of the major centers for law firms. Beverly Hills, Century City, Downtown, Old Town Pasadena/South Lake Avenue, North Brand Boulevard in Glendale, Torrance, Costa Mesa, Encino, and Woodland Hills are all very big draws for law firms, and many have multiple locations to serve the different regions of SoCal/LA
You're right about Encino and Woodland Hills... there are many law firms on Ventura blvd. west of the 405.
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Old Posted Feb 23, 2007, 6:51 AM
solongfullerton solongfullerton is offline
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There's law firms everywhere. This article is dealing solely with big time, nationally represented law firms. And nearly all the major law firms in LA are on the westside, which I do find odd since the courthouse is downtown.
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Old Posted Feb 23, 2007, 7:03 AM
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The point of the article is that the very large firms that would be willing to pay the $50/sf rents for office space are mostly located on the Westside, and that in order to attract those types of tenants DTLA needs more "cache."
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Old Posted Feb 23, 2007, 7:34 AM
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^ This isn't a ground breaking or new concept. People are HUMAN BEINGS, whether they are an employee or an employer - from cubicle to the corner office. They have desires and wants just like anyone else! Are you working for a company right now and are you a human being still, with EMOTIONS and PREJUDICES? Unless you're a robotic drone, the answer is an emphatic YES!

HUMAN BEINGS operate companies and they choose to establish themselves where it's perceived as safe and prestigious and convenient. Obviously the more high-profile a company is, the more likely a location's cache and status will be considered during location scouting. Why do so many companies from hotels, designers, clubs, to law firms choose to be in the top markets? Well, one thing is they can make the bucks, but another is to give their own company a cache - in essence, the "HALO EFFECT." Which is meant to give the company a sense of status and respect.

Currently, the Westside is where Rodeo Drive is and pretty much most of the 5-Star hotels. It's where celebrities live. It's where you can get a $2,000 appetizer and shop at Kitson and Barneys New York. It's where you see more Mercedes Benz's than Toyotas. That's MONEY. That equals power and prestige.

Now, back to Downtown LA. One thing that Downtown LA has is the high-culture which is very much associated with the upper class. We have the Music Center (LA Opera, Disney Hall, etc.), Colburn, and MOCA. And yes, things like the Staples Center draw crowds because a lot of people like sports. But what is lacking in downtown is general cleanliness, too many homeless, very few executive quality housing, and not enough high-end retail/amenities. Being that I worked at the DCBID, I have a good idea what retailers are looking for. And I can tell you that many are going to be looking at Ralphs and how successful it becomes, and the homeless issue. It would be nice to get rid of those trashy stores on Broadway as well and bring some higher standards downtown!

It'll happen!
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Old Posted Feb 23, 2007, 8:04 AM
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^Downtown will have more high-end retail LA Live, Ralphs, and Grand Avenue are complete. Just look at Hollywood/Highland. Those stores would never have located themselves on Hollywood Blvd. if it weren't for the Hollywood and Highland Complex. It'll start at these tree centers and spread throughout downtown.
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Old Posted Feb 23, 2007, 10:45 AM
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^ I like your way of thinking Westsidelife!


Here's an OLD article on office building on the Westside, giving us some good history on this topic.

http://query.nytimes.com/gst/fullpag...gewanted=print

January 20, 1991
NATIONAL NOTEBOOK: Santa Monica, Calif.; The Last Of the Giants
By ANDREA ADELSON
GLASS and granite are beginning to sheath two of four office buidldings going up in the 17-acre Water Garden here, a project likely to be the last of its scope for some time because of new density restrictions and a commercial construction moratorium in this cramped seaside community.

"The door shut right behind us," said Jerome H. Snyder, principal of the J. H. Snyder Company of Los Angeles, which is developing the $450 million, 1.26 million-square-foot complex with the Miller Klutznick Davis Gray Company of Denver. It will have one five-story building and three of six stories.

Mr. Snyder persuaded Marvin Davis, the Denver financier and developer, to become a 50 percent partner in the project after new Government rules dissuaded his original backer, California Federal Bank, from participating.

Miller Klutznick Davis Gray developed Fox Plaza, an office tower on property formerly owned by 20th Century Fox in Los Angeles, and recently sold the Pebble Beach golf resort in Monterey.

"In time, the Water Garden will be the same kind of trophy property," said James Miller, a vice president of Miller Klutznick, adding that any possible sale was at least six years away. (****Has it really become trophy property? I think it has, so this guy was right in 1991)

Financing was just one hurdle Mr. Snyder encountered in remaking the former industrial park, sold in 1988 by the John M. and Rosalie M. Stahl Trust of New York for an undisclosed sum.

To win approval, Mr. Snyder agreed to pay the city $13.5 million in fees, which included $6 million for traffic improvements, $6 million for low-income housing and $300,000 for a homeless shelter. (***maybe they should do that in Downtown LA, make the developers put in money to improve homeless facilities)

To ease traffic problems created by the 4,000 people expected to work at the site, the Water Garden will have a landlord-operated ride-sharing program; to aid in the hiring of local residents, there will be a job bank. A health club and childcare center are also planned.

"They would not have done all these things without city input," said Suzanne Frick, Santa Monica's principal planner.

The complex, at Olympic Boulevard and 26th Street, will have pedestrian walkways leading to a 1.4-acre artificial lake 18 inches deep. It will sit atop a three-level, 4,200-space underground garage. Recycled water will be supplied by an on-site sewage treatment plant.

The asking rate for the 666,000-square-foot first phase, to be completed in June, is $33 a square foot, compared with about $30 in new office buildings in downtown Los Angeles, where space is more abundant. Both figures exclude tenant improvement expenses. No space has been rented yet.

The architect is McLarend, Vasquez Partners of Costa Mesa. Environmental design is by SWA Group of Sausalito, and the general contractor is Swinerton and Walberg Company of Los Angeles.


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Last edited by LosAngelesBeauty; Feb 23, 2007 at 10:51 AM.
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Old Posted Feb 23, 2007, 10:49 AM
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^ Interesting that the Westside was averaging around $33 sf in 1991 in prized buildings and has now risen to over $50 sf in 2007.

Downtown LA on the other hand has only gotten slightly more expensive from $30 in 1991 to $33 in 2007.

What will happen when Downtown LA hits $50 sf? Will the Westside continue to climb higher or will there be a shift in balance? HMMM...
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Old Posted Feb 23, 2007, 5:21 PM
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Note to Kellie Schmidt (writer of the article about Westside law firms): Cache is a noun that means "stash". The word that means "prestige" is cachet.

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