Hollywood boosters have worried for months that developers hungry for old office buildings to convert into expensive condos would chase out vital businesses.
Those fears became reality last week when Capitol Records Inc.’s parent company, EMI Group PLC, informed city officials it may sell the iconic Hollywood building.
“Capitol has told city officials that they have received various offers,” said Helmi Hisserich, head of the Hollywood office of the Community Redevelopment Agency of Los Angeles. “We are working diligently on keeping Capitol Records in Hollywood, where we think they want to be located.”
City officials have been lobbying EMI executives to keep its operations in the building. Mayor Antonio Villaraigosa and Los Angeles City Council President Eric Garcetti have contacted executives at Capitol Records and EMI Group in hopes of keeping the recording company and its roughly 160 employees in Hollywood.
Villaraigosa has called EMI executives several times, offering to come up with public assistance to help the recording company remain in its landmark Welton Beckett-designed tower north of Hollywood Boulevard and Vine Street.
EMI spokeswoman Jeanne Meyer confirmed the company had received offers but she insisted the building wasn’t being actively shopped on the open market. Residential developers, eager to take advantage of Hollywood’s sizzling housing market, have been making unsolicited offers in the community.
“We have received some proposals and it’s our responsibility to review any serious offer,” she said. “It’s no secret that every property owner in that area has been getting offers.”
Meyer said EMI could sell the Capitol Records building if the company could lease back the property for 10 to 15 years. Under that scenario, Capitol Records would continue to operate at the site.
City officials are hopeful if EMI sells the property, it will be to a developer who will finish the Capitol Records’ expansion, which includes a parking garage and other projects.
“Having Capitol Records stay and expand in Hollywood has always been a priority for the city and the redevelopment agency,” Hisserich said.
