08-17-09

Page 1

LOS ANGELES

DOWNTOWN

NEWS Volume 38, Number 33

INSIDE

Healthcare 10-14

2

A City Hall milkshake, more bicycles, and other happenings Around Town.

6

The city-Geoff Palmer affordable housing lawsuit tangle continues.

W W W. D O W N T O W N N E W S . C O M

August 17, 2009

School’s Not in Session Though Downtown Population Grows, Parents Find Few Options for Elementary Education by RichaRd Guzmán

Urban Scrawl on the ‘taco truck’ craze.

4

The latest Restaurant Buzz.

15

Downtown’s first Fashion Walk.

16

An eating champ comes to Little Tokyo.

17

Nisei Week highlights.

18

Five great entertainment options.

19

19 CALENDAR LISTINGS 21 CLASSIFIEDS

city editoR

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owntown has a lot to offer residents like Alisa Rivera and Susana Benavidez. It’s got dining, culture, entertainment and transportation options all within a relatively small neighborhood. There are more people and an increasing number of families. But for parents like Rivera and Benavidez, the Downtown renaissance is lacking one crucial element. It is something that many believe needs to be addressed, and quickly. Without it, some of the new inhabitants may up and leave. “I love living Downtown, but I would

consider leaving it because of the school situation,” said Rivera, the mother of a 2-year-old son, Nathan. “It’s going to become really difficult for parents.” As the school year approaches, Downtown has in fact seen an expansion in educational offerings. In September, a charter middle school will open near Chinatown and the state-ofthe-art High School for the Visual and Performing Arts will debut on Grand Avenue. The latter marks the culmination of a Los Angeles Unified School District building spree that has delivered three new high schools to the area. However, there remain very few options see Schools, page 7

photo by Gary Leonard

With her daughters approaching school age, Susana Benavidez is looking for elementary school options in Downtown. She is not alone.

Maguire Loses Seven Buildings

Fashion Industry Shakeup

Despite Problems, Company Chief Still Committed to Downtown Portfolio

Apparel Businesses Grapple With Recession And Find a Harder Time Getting Loans

by Ryan VaillancouRt

by anna Scott

Staff wRiteR

Staff wRiteR

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aguire Properties, Downtown’s largest commercial landlord, announced last week that it is going to stop making debt payments on seven high-profile office buildings: six in Orange County, and the 28-story Downtown edifice 550 S. Hope St. A combination of low rents, high vacancy and massive debt resulted in a negative cash flow from all the properties, Maguire CEO Nelson Rising said. The 622,000-squarefoot 550 S. Hope St. building was part of Maguire’s $2.88 billion acquisition of 24 office properties and 11 development sites from the Blackstone Group in April 2007. At the time, the company was run by Robert F. Maguire. Rising replaced Maguire in May 2008. “It’s a terrific building,” Rising said of 550 S. Hope St., which opened in 1991. “But we no longer have an interest reserve in that building and when we look at what it’s going to cost us on monthly carry and in see Maguire, page 9

owntown Los Angeles has long been a fashion industry hub. The area is home to thousands of businesses at every level of the apparel food chain, from fabric suppliers to designers to wholesalers. According to a Fashion District Business Improvement District study, the area in 2006 supported 66,000 jobs and did an estimated $5.76 billion in volume. Despite these powerful figures, business models that have driven the industry for decades are being challenged by the recession, local business leaders say. The forces at hand, specifically a nationwide dip in consumer spending and trou-

bles at the New York-based fashion industry-financing giant the CIT Group, Inc., extend well beyond Downtown. But the fallout is having a big impact at the local level. “This has woken everybody up,” said Kent Smith, executive director of the Fashion District Business Improvement District, which operates in a 115-block area of Downtown. “The crystal ball has become a lot cloudier. In the fashion industry in particular, it is very murky out there in terms of trying to fathom what is going on inside the head of the consumer.” The Los Angeles region’s apparel industry generated approximately $24 billion last year in sales and see Fashion, page 8

photo by Gary Leonard

The 28-story building at 550 S. Hope St. is one of seven structures that Maguire Properties last week said it would stop making debt payments on.

photo by Gary Leonard

California Fashion Association President Ilse Metchek, shown at the California Market Center, is working on a plan to match up-and-coming clothing businesses with investors. The effort is a response to upheaval in the apparel industry.

Since 1972, an independent, locally owned and edited newspaper, go figure.


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08-17-09 by Los Angeles Downtown News - Issuu