The Los Angeles County Metropolitan Transportation Authority is preparing to close this month on its $75 million purchase of Union Station.
The MTA is buying the downtown landmark from San Francisco real estate developer Catellus as plans move forward to build a multibillion-dollar high-speed rail line from San Diego to Northern California, with the station serving as the downtown L.A. stop.
Union Station was built in 1939 and already services several subway lines, regional buses, and Amtrak and Metrolink trains. The MTA’s first order of business, once it seals the deal with seller Catellus Operating Limited Partnership, will be to come up with a plan on how to improve the structure.
The agency plans to create an oversight committee to develop a master plan, and after that will initiate a design competition to substantially remodel the station, which is a nationally registered historic landmark.
The master plan will look at how to integrate all transportation services and how to improve pedestrian and bicycle access. In addition, the MTA plans to incorporate sustainable design principals in the design.
In June, the oversight committee will report back to the MTA board with a project schedule and funding plan. As part of the $75 million deal, Metro will purchase 38 acres of land and 5.9 million square feet of entitlements that give it the right to build on the property and draw lease revenues from transit operators and businesses.
Forking It Over
A proposed 10-year lease between Federal Express and Los Angeles World Airports requires the overnight carrier to pay $6.7 million retroactively for rent.
The 10-year lease calls for an annual rent of $6.4 million, at $16.50 per square foot, for cargo buildings at 5927 W. Imperial Highway at Los Angeles International Airport.
The $6.7 million back payment covers rent not paid since 2009 while the new lease was under negotiation. The retroactive payment applies to the period between Feb. 24, 2009, to Jan. 31, 2011. The land includes hangar, shop and office space.
FedEx spokeswoman Sally Davenport would not discuss details of the lease, but said she is confident that FedEx and LAX will agree on the terms.
“We’re good tenants at LAX and we want to continue being in our location there,” she said.
The proposed 10-year lease will generate $77.6 million for LAX, including the $6.7 million back payment. That amount includes a 2 percent Consumer Price Index increase.
The Los Angeles City Council must still approve the deal.
Staff reporter Sam Bennett can be reached at [email protected] or at (323) 549-5225, ext. 263.
