City awards AECOM millions in incentives for DTLA hotel project

The firm is planning a 258-key hotel in South Park amid wider construction

TRD LOS ANGELES /
Apr.April 30, 2019 12:31 PM
Michael Burke CEO of AECOM and a rendering of the project
Michael Burke CEO of AECOM and a rendering of the project

The Los Angeles City Council on Tuesday approved $17.3 million in tax incentives for AECOM Capital’s planned 258-key hotel in Downtown, which will next to its own mixed-use tower project and amid the Convention Center’s massive redevelopment.

The investment firm is set to receive the tax incentives over 25 years. The 16-story project will rise at 1155 South Olive Street, about half a mile from the Los Angeles Convention Center. It will be 121,000 square feet, including 2,700 square feet of restaurant space and 900 square feet of retail space.

The city is also considering similar incentives worth $100 million over 25 years for both the 850-room expansion of the J.W. Marriott at L.A. Live, and the $1.2-billion expansion of the Convention Center. Both will be redeveloped by Anschutz Entertainment Group.

The city has provided similar breaks for other hotel projects the past few years, and was criticized last year by the City Controller for doing so. The controller, Ron Galperin, argued City Hall doesn’t have a comprehensive strategy to ensure the practice is transparent or “advantageous to taxpayers.”

The city also approved $345 million in incentives for the Frank Gehry-designed Grand Avenue Project, Fig + Pico hotel and the Cambria hotel.

About a block away, AECOM is developing another project. Last year, it announced plans with Mack Urban for two mixed-use towers, one 51 stories and the other 60 stories.


Related Articles

arrow_forward_ios
Jose Huizar and a rendering of the project (Getty, City Market LA)

Huizar-tied community benefits fund linked to DTLA megaproject faces scrutiny

Huizar-tied community benefits fund linked to DTLA megaproject faces scrutiny
California State Senator Scott Wiener and Construction Trades Council President Robbie Hunter

Construction union pulls “anti-Semitic” Scott Wiener attack ad

Construction union pulls “anti-Semitic” Scott Wiener attack ad
Federal authorities charged developer Serena Shi in an alleged $20 million EB-5 scam

Coachella condo project at center of $20M alleged EB-5 fraud

Coachella condo project at center of $20M alleged EB-5 fraud
California State Senator Scott Wiener

Coronavirus could hurt LA’s density push

Coronavirus could hurt LA’s density push
Renters across LA are at their wits end with construction and renovations (Credit: iStock)

LA renters stuck at home are fed up with ‘disruptive’ construction projects

LA renters stuck at home are fed up with ‘disruptive’ construction projects
Mayor Eric Garcetti and SoFi Stadium Justin Sullivan and Scott Varley/MediaNews Group/Torrance Daily Breeze via Getty Images)

LA will shut down construction sites that don’t follow COVID-19 guidelines

LA will shut down construction sites that don’t follow COVID-19 guidelines
Architect Simon Park and a rendering of the project (Credit: SSPSTUDIO ARCHITECTURE & URBAN DESIGN)

Boyle Heights slated for another mixed-use project

Boyle Heights slated for another mixed-use project
Monica Rodriguez orchestrated the nixing of a residential project set for the Verdugo Hills Golf Course (Credit: Google Maps, Wikipedia)

The threat of fire doomed this Tujunga resi project. Now the developer will sue

The threat of fire doomed this Tujunga resi project. Now the developer will sue
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...