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November 12, 2001 |
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Interest in Metro
Rail Joint Development on Rise as
Versión
en español “At Hollywood &
Highland, we have an ideal partnership, a destination for millions, and
the public transportation system to get them there, including the
development’s many employees, some of whom live in surrounding
communities and do not own a car,” says MTA Board Chair John Fasana.
“Signposts up ahead signal this being just the beginning of other joint
development projects that will be beneficial to both private investors and
taxpayers. “Hopefully a large
percentage of the people who wind up using Metro Rail for traveling to
Hollywood & Highland because it is safe, fast and convenient, and are
using public transit for the first time, will decide that the train can
have other applications in their lives, including work and play, thereby
reducing traffic congestion and improving air quality.” The 1.2 million square
foot development will feature six new movie screens called the Chinese 6
Theatres, over 70 retail shops, restaurants, a Grand Ballroom operated
year-round by Wolfgang Puck, and a TV studio. It TrizecHahn is leasing
1.35 acres of MTA land for 55 years at a rate of $492,000 per year (with
additional increases added every five years based on the Consumer Price
Index) and four 11-year optional extensions. The project was the result of
two years of negotiations among the MTA, Los Angeles Community
Redevelopment Agency, and the City of Los Angeles. “Joining Hollywood
& Highland with the Metro Red Line subway is the perfect public-sector
marriage,” says TrizecHahn President Lee Wagman. “The ability to
deliver over 9 million visitors a year to Hollywood via the Metro Red Line
was a vital component of our development. I would hope and expect other
developers will seek out the MTA as partners at other Metro Rail
stations.” At the nearby
Hollywood/Vine Metro Red Line station, MTA is currently reviewing joint
development proposals. At the
Hollywood/Western Metro Red Line subway station, McCormack Baron Salazar
has already built 60 affordable housing units at a cost of $11 million. A
tentative ground lease agreement has been reached to build 60 more
affordable housing units, a daycare center and 10,000 square feet of
retail space for $12.5 million. Construction is expected to begin on the
second phase in early 2002. Last summer, the MTA
Board of Directors agreed to enter into six months of exclusive
negotiations with a developer who wants to build a $36 million mixed-use
complex at the Wilshire/Western Metro Red Line subway station. If, at the
end of the period, the MTA Board approves a joint development agreement
with Wilshire Entertainment Center LLC, which would also include a ground
lease, the four-story complex would feature 50,800 square feet for retail
stores, 182 apartment rental units, 564 parking spaces and a bus transit
center. Wilshire Entertainment
Center LLC is one of an increasing number of developers who have proposed
joint developments at Metro Rail stations, a reflection of a shortage of
commercial real estate and realization that Metro Exclusive negotiations
are also underway with developer MacLeod Partnership to jointly develop
the Westlake/Macarthur Park Metro Red Line subway station. If a final deal can be
consummated, the station would feature 52,000 square feet devoted to
retail and restaurants, a 50,000 square foot market, 6,500 square feet for
retail kiosks, a possible charter middle school for 350 students plus
park-and-ride spaces and an area where passengers can be picked up or
dropped off. Joint development has
also taken place at two other Metro Rail stations. Home Savings of America
constructed a major portion of the MTA’s 7th St./Metro
Center/Julian Dixon Metro Rail station portal at private expense.
Meanwhile at the Willow Metro Blue Line station, MTA and the Long Beach
Redevelopment Agency leased land to the parent company of Luckys Stores
(now Albertson’s) who constructed a shopping center and a 700-space
parking structure for Metro Blue Line passengers. In addition, MTA, in
conjunction with Catellus Development Corp., constructed its headquarters
building, transit center, and prepared building pads for future
development around Union Station. On November 29, the MTA
Board will consider entering into a six-month exclusive negotiations
agreement with developer Legacy/Olson for a mixed-use, transit-oriented
joint development at the North Hollywood Metro Red Line subway station. If
selected by the Board, developer Legacy/Olson In addition, exclusive
negotiations for joint developments at Wilshire/Vermont and Hollywood/Vine
Metro Red Line stations are expected to begin in January or February 2002. “Creating joint
developments around Metro Rail stations, which can include housing units
and office space as well as retail and recreational activities is
something the MTA Board has set its sights on, especially since Metro Red
Line expanded to the San Fernando Valley in June 2000,” says Fasana.
“We are very optimistic that agreements similar to Hollywood &
Highland and as ambitious will be realized.” Economist Jack Keyser
of the Los Angeles County Economic Development Corp. says Metro Rail
“certainly helped” TrizecHahn decide to build at the Hollywood and
Highland location and will carry both out of state visitors and residents
to the complex. “Business people who
attend conventions in Los Angeles and Long Beach will want to take Metro
Rail to Hollywood & Highland as well as tourists, and residents who
are looking to have fun in their own backyard. Thousands of patrons
venturing to Hollywood & Highland are expected to visit the 8.7-acre
site each day by taking the fast, safe and convenient Metro Rail system. Metro Red Line
passengers can travel from the North Hollywood Metro Red Line station and
arrive at Hollywood & Highland in eight minutes; from the Universal
City station in four minutes and from Union Station in 21 minutes. The Metro Red Line
subway also links up with the Metro Blue and Green light rail lines which
serve Long Beach, Redondo Beach, Compton, Norwalk, Watts and other
communities. MTA-144 |
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