LOS ANGELES
DOWNTOWN
NEWS February 8, 2010
Volume 39, Number 6
Valentine’s Day Action 12-15
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Mixed-Income Ordinance hits a wall, and other happenings Around Town.
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What Downtown misses with no football team and no Super Bowls.
W W W. D O W N T O W N N E W S . C O M
INSIDE
City Gets Ready For the 1,001 Room Ritz-Carlton/ Marriott
Rents to rise at El Pueblo.
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by AnnA Scott StAff writer
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Urban Scrawl on the budget battle.
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photos by Gary Leonard
What’s next for the Convention Center?
A landmark building could be sold.
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The weird world of ‘North Atlantic’.
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Celebrate Chinese New Year.
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18 CALENDAR LISTINGS 20 MAP 21 CLASSIFIEDS
The 54-story J.W. Marriott/Ritz-Carlton hotel tower at L.A. Live opens on Feb. 15. Developer Anschutz Entertainment Group spent $1 billion on the project. (Bottom) The site as it appeared in October 2007.
The Voice of Downtown Los Angeles
or the past two and a half years, Downtown has eagerly watched the progress of the Convention Center hotel. The development that began with a massive groundbreaking ceremony on June 1, 2007 — complete with a chandelier suspended from a crane, hanging over city and business officials as they stuck golden shovels into the ground — culminates on Feb. 15 with the opening of the 54-story tower. Although developer the Anschutz Entertainment Group spent $1 billion on the project, it is only now that the really hard work begins. The Ritz-Carlton/J.W. Marriott hotel and condominium tower represents the final piece of the 27-acre L.A. Live entertainment district, which began its rollout in fall 2007. The project includes 1,001 hotel rooms and 224 condominiums. Experts and AEG officials agree that, at least in the short term, the battered economy will mean the project generates lower revenues than were originally anticipated. But AEG brass expect that the location and the favorable financing that was secured before the hotel and housing markets tanked will help the mega-development. “We financed this project before the recession hit, so we were very fortunate that we locked in long-term financing,” said AEG President Tim Leiweke. That means the developer has several years to pay back the syndicate of lenders that financed the tower’s construction; that is in contrast to several other largescale projects in Downtown and elsewhere that have been turned over to lenders in recent months as developers were unable to make payments. Leiweke also noted that two years ago AEG and investment partner MacFarlane Partners provided enough upfront capital to finish the project. “We understand that other projects have fallen by the wayside or gone into bankruptcy, but none of that is going to happen here,” he said. “We were a little bit lucky and aggressive when we got our financing. Our timing was good.” Rooms to Let The opening of the Ritz-Marriott will be celebrated Feb. 16 with a ribbon-cutting ceremony, although the first Marriott guests will begin checksee Hotel, page 8