MTA to End Exclusive Arrangement With Legacy on Hollywood Project
By HOWARD FINE
Staff Reporter
Legacy Partners’ $325 million Hollywood & Vine mixed-use project was dealt a major setback last week when the board of the Metropolitan Transportation Authority, which owns the land, voted 7 to 1 to end exclusive negotiations with Legacy on March 28 and throw the site open to other bidders.
The vote surprised the development partnership, which had received MTA staff support for a six-month extension on the exclusive negotiation period for the massive apartment, condominium, hotel and retail project.
But L.A. County Supervisor and MTA board member Zev Yaroslavsky, who had long been skeptical of the project, introduced an amendment to the staff motion that terminates the exclusive negotiating period.
“The developers have not made significant progress and we have three other bids waiting out there,” Yaroslavsky said. “I’m very concerned that the hotel won’t pan out, the condominiums won’t work and all we’ll be left with at this world-famous intersection is an apartment complex.”
Yaroslavsky also expressed concern that the L.A. Community Redevelopment Agency would find itself embroiled in controversy with Hollywood residents if it tried to exercise eminent domain.
The developers flatly rejected Yaroslavsky’s assertions, saying they were close to agreement on several fronts. The rest of the project, they said, would fall into place once the CRA gives its approval for eminent domain proceedings, which they said they expected to come in June.
“I’m just shocked at the vote,” said Marty Collins, president of Dallas-based Gatehouse Capital, an investment company in partnership with Legacy on a proposed W Hotel that would be part of the development. “We had come such a long way and it seemed we had everyone’s support on this. We will work to try to meet Zev’s concerns, but what we will not do is spend time and money on this outside the exclusive negotiation period.”
Legacy officials say they will continue negotiating with the MTA at least through March, though they didn’t indicate whether they would continue to negotiate after the exclusive negotiation period ends.
“No question this is a significant speed bump for this project,” said Dennis Cavallari, senior vice president for Irvine-based Legacy. “But we’re not giving up. We have financing waiting in the wings as soon as this project is fully defined.”
As currently proposed, the project would sit atop a Metro Rail station at the southeast corner of the fabled intersection of Hollywood Boulevard and Vine Street. The project calls for a 300-room hotel that would be operated under the W moniker, 50 condominiums, 250 apartment units (including 50 units that meet the federal definitions for affordable housing) and over 40,000 square feet of ground-floor retail space.
In addition, Legacy would build a 982-space underground parking structure and was in discussions with MTA staff to build a 500-space “park-and-ride” lot for Metro Rail riders.
The MTA, which had been seeking proposals for the Hollywood & Vine intersection for several years, chose Legacy over three other bidders last June and in September entered into exclusive negotiations with the development firm.
“If the developers can show significant progress in the next 30 days, I’ll be more than happy to reverse my stand,” Yaroslavsky said.
