Downtown Renaissance Coming In on the Money

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Downtown L.A.’s renaissance has spread well beyond residents moving into high-price apartments and is now boosting the entire economy.

That’s the conclusion of a report from Westchester’s Beacon Economics released late last month at a downtown economic summit sponsored by the Central City Association and the Downtown Center Business Improvement District.

The report notes that downtown’s growth in employment, construction permits, total property value and office-space absorption have all outpaced other areas of the city and Los Angeles County.

“The whole downtown area is on the rise,” said Christopher Thornberg, founding partner of Beacon and the principal author of the report. “Sure, restaurant and hotel employment has been growing like gangbusters, but there’s also been steady growth in professional services, technology firms, insurance and other sectors.”

Among the eye-popping statistics from the report: Total annual gross receipts from downtown businesses reached $28.9 billion in 2013, up 25 percent from 2006; total assessed property value reached $24.8 billion as of June of last year, up a whopping 72 percent from 2006; and the median price of a condo downtown was $531,000 in 2014, 25 percent higher than the rest of the county.

Thornberg said the only weak spot amid all the positive trends is the lack of a high-end retail district.

“Downtown New York has its Fifth Avenue, downtown Chicago its Michigan Avenue, but downtown L.A. still has no equivalent,” he said. “That’s the next thing they have to put downtown.”

Separately, the Downtown Center BID released the results of its fifth annual survey of more than 3,800 area residents, workers and consumers-visitors. Among the findings: 80 percent believe downtown is moving in the right direction; the median household income of the respondents is $99,000, nearly twice the countywide median; and more than 80 percent of respondents said it was important to them to either live close to or shop close to where they work.

“We found a community knowledgeable and passionate about DTLA – educated, affluent and active individuals with a broad belief that DTLA is moving in the right direction,” said Carol Schatz, chief executive of the business improvement district.

Flea And Food

If retail is what’s missing downtown, help could be on the way.

New York’s Atlas Group and Runyon Group of Culver City are redeveloping Alameda Square, a 30-acre complex south of the Arts District, into what they’re calling Row DTLA, which is expected to open this summer. The massive project will consist of 100 merchants, 15 restaurants, about 1.3 million square feet of creative office space as well as eight gardens and large open spaces for cultural programming.

And the development just got another big boost. Smorgasburg, an extremely popular New York flea and food market that will make its first appearance on the West Coast. The open-air market will occupy five acres within the more than 421,000-square-foot Alameda Produce Market complex. It will feature more than 100 vendors from the worlds of design, craft and food every Sunday beginning June 19.

But the wholesale produce market’s grittiness won’t completely vanish, said Eric Demby, Smorgasburg’s co-founder.

“I think maybe some cosmetic improvements, interesting tents, pop-ups for the day to make it feel more like a market, to make it feel more sophisticated,” said Demby of his and co-founder Jonathan Butler’s plans. “Nothing drastic.”

Demby said the duo envisions having as much success with the L.A. venture as they’ve had with two similar markets in Brooklyn, the first of which launched in 2011. The East Coast versions often draw more than 10,000 visitors.

“At the end of the day, I’ve met so many great people doing interesting things out there,” Demby said about Los Angeles. “Food, clothing, making interesting design products, doing interesting things with nonprofits,” he said. “Even the real estate developers have interesting ideas.”

New CEO on Skid Row

Skid Row’s Midnight Mission has a new chief executive.

G. Michael Arnold took over the position and joined the nonprofit’s board this month after the retirement of Larry Adamson, who had served as chief executive for the past 18 years. Adamson will remain on the board.

Arnold, who is only the fourth leader of the 102-year-old human services organization, had previously served as the executive director of the Los Angeles Homeless Services Authority.

Midnight Mission is funded by public donations and provides more than 1 million meals each year to homeless individuals and families, along with numerous short- and long-term support services.

“I look forward to working with the outstanding board of directors and staff of the Midnight Mission, and with the community at large as we all work together to end homelessness in Los Angeles,” said Arnold in a statement.

Staff reporters Howard Fine and Natalie Schachar contributed to this column. #DTLA is compiled by Managing Editor Omar Shamout. He can be reached at [email protected].

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