City awards AECOM millions in incentives for DTLA hotel project

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
Continuum CEO Mark Falcone and a rendering of the project (EYRC Architects via Urbanize)

Continuum Partners, Platinum Equities plan Arts District office tower

Continuum Partners, Platinum Equities plan Arts District office tower
Rendering of 577-unit District Square project in South L.A. (Los Angeles Department of City Planning, iStock)

Judge orders LA to reconsider Charles Co.’s District Square project

Judge orders LA to reconsider Charles Co.’s District Square project
Forme Development President Damon Chan and rendering of 550 Shatto Place (Forme, Gensler via Urbanize)

Going up: Koreatown tower project developers boost plans

Going up: Koreatown tower project developers boost plans
Herb Wesson (top) and Curren Price with a rendering of 3800 W 6th Street (Linkedin, Twitter, Large Arch)

LA officials backtrack on aid for Koreatown hotel project

LA officials backtrack on aid for Koreatown hotel project
Richard Llewellyn and Ron Galperin (City of LA, Wikimedia)

LA’s ballooning budget shortfall could require property selloff

LA’s ballooning budget shortfall could require property selloff
California Gov. Gavin Newsom (Credit: Justin Sullivan/Getty Images)

Newsom signs into law slate of tenant protection and housing measures

Newsom signs into law slate of tenant protection and housing measures
Michael Rosenfeld,,Simon Reuben and David Reuben, with a rendering of Century Plaza (Credit: Presley Ann/Getty Images, and Dave Benett/Getty Images)

Michael Rosenfeld’s Woodridge Capital lands $275M loan for Century Plaza

Michael Rosenfeld’s Woodridge Capital lands $275M loan for Century Plaza
California State Senator Scott Wiener and Senate President Pro Tem Toni Atkins

Statewide bill would allow duplex development on single-family parcels

Statewide bill would allow duplex development on single-family parcels
arrow_forward_ios

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

Loading...