BILL WITTE OF RELATED SAID IT WAS AN INVESTMENT, SO DUBAI WOULDN'T BE INVOLVED IN DECISIONS!!! (HE USED THAT AS THE SELLING POINT!!!) NOW, IT IS A CHANGE OF OWNERSHIP. WHAT OWNER HAS NO SAY IN THE PROJECT? This is not a private project! It is a City, County and State project on public land, with CRA helping with the project and City Council and Board of Supervisors involved. So now the Royal Family of Dubai is having say in local land issues? Gotcha! ;) Spin away Citywatch!
From Daily News:
The Los Angeles County Board of Supervisors on Tuesday approved an ownership change for the $3 billion Grand Avenue project in downtown Los Angeles, transferring a 45 percent capital interest to a Dubai-owned company.
The developer, The Related Cos., will retain a 55 percent capital interest in the project.
Related's previous equity partner, California Urban Investment Partners - owned 97 percent by CalPERS and 3 percent by MacFarlane Urban Realty Co. - decided not to participate in the project.
"Unfortunately, CalPERS and MacFarlane were overinvested in downtown so Related has sought to find another equity partner," Supervisor Gloria Molina said. [Call it "overinvested", others say pulling out of a loser project. You never pull out of winners.]
"Related found Istithmar (Group), which was previously invested with them in the Time Warner Center Mandarin Oriental Hotel (in New York City) so they've dealt with them before. [But not in partnership with New York City, County and State government!] Under the ownership ... they will own the project and have key Related personnel remain as our contacts."
The supervisors voted 4-0 for the deal with the Istithmar Group - a subsidiary of Dubai World, a privately held holding company owned by the government of Dubai. [Eric Garcetti and Royal Prince of Dubai! Perfect match.]
Supervisor Michael D. Antonovich, who has long criticized the plan, abstained. [Good for you Mike. Why should you besmirch yourself over others delusions?] Afterward, Antonovich said he's been frustrated with construction delays and an estimated $176 million in taxpayer subsidies.
"It's a project I've been concerned about from the beginning," Antonovich said. "It's benefiting a handful of people and the cost overruns built into this project will be borne by the taxpayers who will be victimized once again from these types of developers."
full article
Zuma's previous Grand Ave Project coverage
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