Los Angeles County Supervisor Mike Antonovich on Friday strongly criticized Related Cos. Chief Executive Stephen Ross for his recent $1 billion purchase of the Miami Dolphins NFL franchise, which took place just prior to Ross’ company deferring penalties on its delayed Grand Avenue project.
Antonovich, a vocal critic of the downtown Los Angeles mixed-use development, is calling to rebid the project so other proposals could be considered. The project has been delayed several times, primarily because the developer has had trouble securing a construction loan in the current economy.
Ross, who bought 50 percent of the Dolphins and Dolphin Stadium from Wayne Huizenga in February 2008, brought his stake up to 95 percent on January 20. The deal was not done under the Related name, but that doesn’t matter to the L.A. County supervisor.
“To me it unconscionable that while Steven Ross and Related Cos. have been claiming poverty and an inability to honor their contract to pay L.A. County taxpayers $250,000 for the delay of their project, they have negotiated the purchase of the Dolphins,” said Antonovich in an interview with the Business Journal.
The agreement between Related and the city-county authority that oversees the mixed-use development called for the developer to start paying a fee of $250,000 each month beginning this month if it failed to break ground on the massive, $2.7 billion project. But citing the credit crunch and weak economy, Related and the authority restructured the penalties, deferring them until construction starts.
Martha Welborne, managing director of the Grand Avenue Committee, a citizens body that oversees and advises on the project, told the Business Journal in November that the $250,000 monthly fees could be used to help fund the affordable housing component of the project’s second phase.
“They have shortchanged the L.A. County taxpayers for an economic investment in Florida,” Antonovich said. “It’s the reason why we need to rebid the project and have a local developer come in that has a record of honoring their agreements.”
A spokeswoman for Related Cos. said there was not anyone in the company’s New York City office available for comment.
