Los Angeles officials approve controversial $1.2B South Central development

Dive Brief:

The Los Angeles City Council has unanimously approved a $1.2 billion, 35-story, mixed-use luxury development for the city's South Central neighborhood. The Reef will include multiple towers of for-rent apartments and for-sale condominiums, as well as a grocery store, hotel, restaurants and fitness center — all built near public transportation.
The development has spurred protests from some neighborhood advocates who say the complex will push out lower-income residents and will gentrify the South Central district.
In response to community concerns, developers will set aside 5% of the apartments for low-income residents, contribute $15 million to an affordable housing fund and donate $3 million for various community programs targeting job training, youth and violence prevention. Some protestors responded that 50% of the units should be set aside as affordable.

Dive Insight:

However, The Reef is not the only proposed South Los Angeles development drawing fire from local groups. The 2-million-square-foot, 11-acre Cumulus project — also located near mass transit — will bring with it office space, grocery, dining and retail and is expected to generate 1,700 temporary construction positions and 1,200 permanent jobs. However, the Crenshaw Subway Coalition and Friends of the Neighborhood Integrity Initiative filed a lawsuit alleging that Los Angeles officials did not abide by existing zoning laws during the approval process.

The Neighborhood Integrity Initiative, which would establish a two-year ban on zoning changes necessary to build many high-density projects, will be up for a vote in March. Opponents of the initiative have said it will only curb the development of much needed city housing, but proponents said it would stop the developer gravy train and help maintain quality of life in many overstressed areas of the city.

One such "megadevelopment" is a proposed 14.5-acre, high-density mixed-use project on the site of two large warehouses in the L.A. Arts District. Plans call for a 58-story high rise with residential, office and retail components, plus two hotels, parks, a school and 23,000 square feet of community space. Developers for this and other projects have expedited the application process to beat the Neighborhood Integrity Initiative vote.