DTLA—The City Council this morning voted to approve the latest joint venture partnership and timeline for the long-delayed Grand Avenue project. The $950 million mega-development being designed by Frank Gehry is now scheduled to break ground in 2018 and open in 2022, according to developer Related Companies.
Related also announced an investor in the project. CCCG Overseas Real Estate Pte. Ltd, also known as CORE, will invest $290 million in the project that will include a residential tower, a 300-room Equinox branded hotel, and a large retail and restaurant component that faces Grand Avenue. The project will rise across the street from the Walt Disney Concert Hall on a site that currently houses a parking structure.
CORE, according to a statement announcing the approval, is the real estate arm of the China Communications Construction Group, which has 110,000 employees and operates in more than 90 countries. This is CORE’s first major project in the United States.
“We welcome CORE as our joint venture partner on Grand Avenue,” said Ken Himmell, CEO of Related Urban, in a prepared statement. “They share our vision for the creation of a world-class destination and as a global Fortune 110 company, they boast not only a sterling financial record but also have great excitement for the development.”
According to Related, the project is expected to create more than 10,000 jobs, with 8,310 during the construction phase, and 3,280 permanent positions. Related also estimates that the project will generate $570 million in new revenue to the city and county over the next 25 years.
Related officials previously said the project would include 380-450 residential units, 20% of which would be set aside as affordable housing.
The project was initially announced before the recession, and stalled during the economic downturn. It has been through numerous design changes.
The City Council vote follows recent approvals by the County Board of Supervisors, the joint powers Grand Avenue Authority and the successor agency to the Community Redevelopment Agency.
“After many years, all the necessary components of a successful Grand Avenue Project are coming together,” City Councilman José Huizar, whose 14th District includes Downtown, said in the statement. “This is not just any development, the Grand Avenue Project is an iconic venture that will help further define Downtown Los Angeles as a major cultural, civic and artistic destination.”
Copyright 2016 Los Angeles Downtown News