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.