LA County’s Tower Purchase Raises Concerns

LA County’s recent acquisition of a gas company tower for $200 million is being viewed as a questionable decision by some local supervisors. This price is significantly lower than what similar downtown skyscrapers were valued at prior to the pandemic’s impact on office real estate.

But just nine months after the sale, several supervisors are expressing doubts about the deal.

A major concern is the upcoming $230 million contract for earthquake upgrades to the newly purchased tower, which is set to become the county’s new headquarters. Supervisor Janice Hahn, who voted against the purchase, hopes there is still a chance to reconsider further investments in the building.

Meanwhile, supervisors Hilda Solis and Lindsey Horvath are advocating to halt all earthquake-related work on the tower immediately.

“Given our current budget challenges, it’s surprising that this work is still on the table,” Horvath noted.

The county’s financial outlook may become even grimmer. Federal funding cuts could force the county to reduce medical services and possibly close hospitals, as warned by CEO Fesia Davenport. Additionally, the county will need to start paying a massive $4 billion settlement related to sexual abuse claims, along with a newly negotiated salary increase for county employees that could cost another $2 billion.

Before the purchase, supervisors were informed about the potential costs associated with upgrading the gas company’s tower compared to the existing Kenneth Hahn Hall of Administration, which is in disrepair.

Last fall, estimates revealed that closing the more hazardous of the two buildings could run up to $700 million, while making the gas company tower compliant could be around $400 million. Currently, the county plans to allocate less than that with a proposal of $234.5 million.

Davenport indicated that the tower had been valued at around $1 billion, contradicting the initial purchase price. Hahn voiced suspicions about the motives behind the acquisition and suggested that many of her colleagues are having second thoughts.

Horvath maintains that despite her skepticism about the necessity of pouring funds into the tower, she still supports the purchase. “I think buying the building was the right choice,” she remarked, adding that an understanding of whether retrofitting is actually needed needs to be clarified.

The gas company tower is among several LA skyscrapers built with steel frames—designed to withstand earthquakes based on lessons learned from the 1994 Northridge Earthquake. Though the building did not collapse during that event, some sustained serious damage.

Renee Laguia, a spokesperson for the county, previously asserted that the tower is safe and that the planned upgrades are proactive measures for future safety.

The discussion around purchasing the skyscraper has stirred heated emotions, especially from labor unions who feel left out of the dialogue regarding true costs. “We need to prioritize emergency services and facilities,” argued Richard Pippin, head of the Sheriff’s Deputy Coalition.

Recent motions also demand clarity on the funding sources for remodeling and which departments will be relocating to the new tower. “This acquisition was supposed to yield savings by consolidating operations,” the motion states, highlighting concerns about transparency after eight months of ownership without clear progress.

According to the CEO, some employees have already begun moving into the tower, with a complete relocation expected to take around three years.

The State of Play

– Olympic Anxiety: Councillor Imelda Padilla has raised concerns about President Trump’s recent involvement with the Federal Olympic Task Force, worrying about potential ramifications for the 2028 Olympics.

– Graffiti Woes: The city has spent significant funds on cleaning graffiti in the second street tunnel, only for the taggers to return within 24 hours, prompting frustration about government waste.

– Labor Discussions: LA County supervisors are considering the management of certain facilities but emphasize that such efforts depend on adherence to existing contracts and rules.

– Abuse Investigations: A notable law firm is pushing for a federal examination into childhood sexual abuse cases within the county’s authority, urging for accountability.

– Heat Regulation: In light of climate change, LA County plans to ask landowners to find ways to keep rental units below 82 degrees to combat heat-related health risks.

– Legal Costs: A major law firm has submitted a hefty bill related to a high-profile homeless case, reflecting the city’s struggles with rising legal expenses.

– Event Centre Vote: A proposal has been made for voters to approve specific venues associated with the 2028 Olympics, emphasizing the importance of adequate planning.

– Military Leave: Deputy Mayor Randall Winston will take a leave for military training, temporarily replaced by executive officer Andrea Green.

Quick Hits

• – Upcoming Docket: County supervisors have requested a report regarding strengthening policies related to journalist protection amid ongoing issues.

Stay in Touch

That wraps up this week’s updates! Feel free to send any questions, comments, or tips to laontherecord@latimes.com.