Developer to spend millions upgrading city sidewalks: South Group pays for downtown work city won't do.

The city of Los Angeles has for years required developers to make essential sidewalk, street and other right-of-way improvements to receive approvals for their projects.

But now, a downtown developer is voluntarily going a step further and setting a new benchmark for privately funded upgrades on public right of ways--a move that could ultimately raise the bar for city-mandated improvements.

South Group, a Portland, Ore.-based partnership, is about to begin $2 million worth of streetscape improvements on Grand Avenue and 11th and Hope streets outside of three of its condominium towers, one occupied and two under construction.

The upgrades, designed by the Los Angeles firm Ah'be Landscape Architects, include an extra-wide sidewalk featuring a double row of shady Tipuana tipu trees and matching street lamps, benches and trash cans.

"The private sector has made a decision. If they had to wait for City Hall to upgrade it would never happen in time to attract the type of clientele they want to attract," said Larry Kosmont, president of Kosmont Cos., an Encino-based real estate and economic development firm.

Having developers fund public improvements--such as expanding roadways to handle expected congestion from new residential, office or commercial developments--has been common in cash-strapped California cities since 1979 when the passage of Proposition 13 cut property tax revenues.

However, developers often seek to limit what work they have to do in order to cut costs, and what they are required to fund is only the most essential work. Indeed, as part of the approval process for condominium projects downtown, the city is requiring developers to redo sidewalks and plant some trees.

But with developers investing hundreds of millions of dollars in condominium towers, a chasm is developing between the upscale developments and the bare bones streetscapes at their base--something that could devalue the projects.

That has prompted South Group to make the additional improvements--hoping it becomes a requirement for other developers. Pending final engineering approvals, work will begin in a few weeks and take about three months to complete.

"Our hope was that this was a pilot project and I would hope the city takes this and says, 'How do we create a master plan with these design elements?'" said Jim Atkins, a principal of the South Group, a joint venture of Williams & Dame Development Inc. and Gerding/Edlen Development Co., two Portland-based developers.

Design standards 

Indeed, the work being done around South Group's condominium towers is being observed by the Los Angeles Community Redevelopment Agency and the Planning Department, as they put together a set of guidelines that would guide developers in their city-mandated improvements of the public right of way.

The new guidelines have to be approved by the Planning Commission and City Council and are slated to be ready for implementation by the summer. "We are trying to come out with a set of design guidelines that go over and above basic standard requirements," said Karen Yamamoto, CRA senior planner in the downtown region.

The improvement of sidewalks, medians and other public areas downtown--with the exception of such large forthcoming public-private partnerships such as Grand Avenue and L.A. Live--has been hindered by a lack of funding.

By contrast, New York City, Chicago and even Seattle have budgets for "ongoing urban retrofits," though even those cities require developers to pay for more right of way improvements than they have in the past, said Larry Coffman, a national streetscape consultant.

City Councilwoman Jan Perry, whose district includes portions of downtown, said Los Angeles simply doesn't have the money or expertise to complete the kinds of improvements that Ah'be designed and South Group is bankrolling.

"I don't think the city would have the time or the capacity. So with massive undertakings it's better to plant the fertile ground with policy and parameters and directives and let the private sector go at it in terms of implementing the vision," she said.

Perry added that when a development is done in the public right of way, the first firm to complete "a compelling enough execution will cause others to follow suit."

The South Group streetscape, by virtue of its scope, has a chance to make an impact. In addition to work done near Elleven at 1111 S. Grand Ave., the new streetscape will eventually cover the sidewalks in front of the forthcoming condo towers Luma at 1100 S. Hope St. and Evo at 1155 S. Grand Ave.

Once the streetscape is built, it will be managed by both the city and a South Group homeowners association, a set-up that is not unusual. The city will care for trees in the public right of way, but the homeowners association will care for benches, trash cans and bicycle racks, among other items.

The Hope Street improvements also include a street water run-off system that acts as a storm drain. Water that permeates the ground will be filtered through the underground system ensuring that less polluted storm water is sent out to sea.

"It's not only the street, it's creating a sense of neighborhood; it's the whole idea of creating a pedestrian friendly environment. It's an opportunity to create a sense of place and a beautiful environment," said Ah'be President Calvin Abe.

In addition to Ah'be, other landscape firms like Melendrez Associates and Campbell & Campbell Inc. are doing work downtown and Yamamoto says there is room for multiple companies to work on different sorts of designs.

"I think there is plenty for everybody," she said. "We benefit from a diverse set of practices; ideas and practices are constantly evolving much to our benefit."

But things can get complicated when the private sector takes on work that has traditionally been completed by cities.

For example, some downtown real estate brokers have expressed concern over the potential lack of continuity in the downtown streetscape--with multiple firms building streetscapes for multiple developments, a consistency often viewed as desirable could be lost.

Indeed, aspects of the South Group streetscape will not mesh with other elements on Grand Avenue. The streetscape in front of Elleven, which opened last year, will include the double row of Tipuana Tipu trees, but the other side of Grand Avenue and other nearby sections of the street feature Canary Island Pine trees. However, along 11th Street, new Chinese Flame trees will be planted to match trees on streets closer to Staples Center.

City officials expect to address these issues when the downtown streetscape guidelines are released later this year.

Some other developers are rethinking their own plans already.

Hamid Behdad, president of Central City Development Group, said he is considering making changes to a new high rise project on Wilshire Boulevard in order to incorporate more streetscape improvements. He said he is particularly impressed with the double row of trees slated for Grand Avenue.

"It is extremely important to a developer to create that ambiance of the sidewalk cafe. Because that is the whole thing we are trying to sell--we are selling a lifestyle," Behdad said.

BY DANIEL MILLER

Staff Reporter