Deal for Grand Avenue project finalized
The joint Los Angeles city-county authority overseeing the $3-billion Grand Avenue project said today that it had finalized negotiations with the project's developer to delay payment of $250,000-a-month late penalties on the project.
Although a previous deal had called for developer Related Cos. to make the payments monthly after Feb. 15, Related now doesn't have to pay the penalties until the project breaks ground or until February 2011, at which point the authority can cancel its agreement with the developer.
Related has said that it has been unable to secure a construction loan on the project in the current financial market.
Under the terms of the new deal, Related must pay $25,000 to the authority every three months until the project breaks ground to partially cover ongoing costs incurred by the authority because of the delay.
The first of those payments is due March 31 and will be prorated from Feb. 15.
--Cara Mia DiMassa