County Planning More Investment in Gas Company Tower
Los Angeles County is set to spend more on upgrading the Gas Company Tower than it did to initially purchase it. Officials agreed on a price of $200 million last November for the 52-story building.
However, estimates for necessary upgrades have risen to over $230 million. County Chief Executive spokesman Renee Ragwar mentioned that the tower is already considered safe, and the upgrade plans are currently in progress.
While improvements to the tower are acknowledged as essential, the exact costs and scope of the work remain somewhat unclear. This week, the county received a proposal from a contractor looking to secure a “voluntary earthquake upgrade” for the tower, which is located at 555 W. 5th Street.
The CEO involved in the purchase emphasized that preparing for seismic activity is expected to be less expensive than the estimated $1 billion required for renovations at the county’s current headquarters, the Kenneth Hahn Hall of Fame.
He conveyed that the Gas Company Tower does not currently need seismic upgrades to ensure a safe and functional workplace. Laguaire stated, “The county is taking the initiative to ensure the building remains effective for years to come.” It was also pointed out that the cost of these upgrades, alongside the purchase price, represents a smaller portion of the overarching costs for improving earthquake readiness and life safety systems.
Initially, the $200 million sale was viewed as a good deal compared to a prior valuation of $600 million several years earlier, reflecting changes in downtown office property values.
Director Janice Hahn, the sole board member against the purchase, expressed concerns, saying that before engaging in real estate transactions, officials should have complete information regarding costs. She remarked, “This has turned out to be a bigger issue than was presented to the public.” Hahn also voiced support for remodeling the historic headquarters instead of abandoning it.
At the time of purchase, Hahn argued that the decision could negatively impact downtown’s Civic Heart and potentially lead to the decline of the Kenneth Hahn Hall of Fame, named after her father, who had a long tenure as a supervisor.
The Management Hall of Fame is among several county-owned buildings considered at risk during earthquakes. While the Gas Company Tower, built in 1991, is viewed as safer, there are still uncertainties around its complete readiness for seismic events.
The tower incorporates a “moment frame of steel” in its structure. During the 1994 Northridge Earthquake, similar buildings didn’t collapse but did sustain significant damage.
Most of the proposed $234.5 million project for strengthening the tower includes reinforcing the connections of the welded steel moment frames. Plans indicate that the contract for this work will be awarded in October, and the building may remain occupied during the construction phase. County officials are beginning to transition employees into the tower.
