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 Phase I to Generate 34,000 Jobs, $3.2 Billion Impact;
 Can Stimulate Local Economy as Early as 1994
 LOS ANGELES, July 26 /PRNewswire/ -- An Economic Impact Study of the Playa Vista community released today by Maguire Thomas Partners outlines major benefits to the Los Angeles-area economy during the 10-year construction period including creating up to 137,000 jobs and pouring $12.8 billion into the economy.
 The economic analysis by the nationally regarded certified public accounting firm of Kenneth Leventhal & Co. was discussed today at a briefing for business, civic and labor leaders from throughout the Sixth Council District, including officers of the Los Angeles area, Westchester, Marina del Rey and Venice Chambers of Commerce, the Venice/Marina Board of Realtors, representatives from local civic organizations, as well as officials of organized labor.
 "This is great news for the long-suffering construction industry," said Jim Wood, secretary-treasurer of the local AFL-CIO. "Playa Vista's construction jobs will put thousands of workers back to work and will provide employment opportunities for the variety of construction-related businesses which serve our industry."
 Wood noted that the 137,000 jobs generated from construction of Playa Vista will be more than the 117,000 construction jobs which have been lost in the Southern California five-county area over the past three years.
 "Real estate developments such as this have the potential to be a powerful economic engine for the region," said Jack Rodman, managing partner of Leventhal's Los Angeles office, who conducted the analysis. "Moreover, the construction industry is one of the few industries that can instantly stimulate a recovery. If Phase I approvals are received this fall, and if the plan is built as proposed, Playa Vista can jump start the local economy as early as next year."
 The City of Los Angeles will be the single-greatest beneficiary, getting nearly $8 billion in economic activity, the report shows.
 The first phase of construction at Playa Vista from 1994 to 1997 would generate 34,000 jobs -- 27,000 in Los Angeles County. The economic output would total $3.2 billion with $2.2 billion benefiting the City of Los Angeles. Phase I include 3,246 homes, 1.25-million- square-feet of office space, 35,000-square-feet of retail space, 300 hotel rooms, 120,000-square-feet of community serving uses and the creation of a fresh-water marsh and riparian corridor.
 The study defines economic output as the total value of goods and services produced as a result of Playa Vista's development. It includes the dollars spent on payroll, building materials and professional services such as surveyors, lawyers, architects and engineers as well as the "multiplier" effect these dollars have as they are spent in local businesses.
 Regional Economic Benefits
 At completion, Playa Vista will have created significant economic benefits for several surrounding communities.
 Economic Output
 -- City of Los Angeles - $7.9 billion
 -- Marina del Rey - $768 million
 -- Culver City - $128 million
 -- Santa Monica - $128 million
 -- Inglewood - $128 million
 Jobs Generated from Construction
 -- City of Los Angeles - 69,000
 -- County of Los Angeles - 32,000
 -- Marina del Rey - 6,000
 -- Culver City - 1,000
 -- Santa Monica - 1,000
 -- Inglewood - 1,000
 -- Southern California
 (Non-L.A. County) - 27,000
 The Kenneth Leventhal & Co. Economic Impact Study uses a methodology developed by the U.S. Department of Commerce that looks at the relationships between various industries and construction projects in Los Angeles and Southern California. For the purposes of this study, a "job" is defined as full-time employment for one year.
 In addition to this model, the Leventhal Report also includes data from two other analyses that use different methodologies. (See attached table 1-1.) These analyses indicate that construction period jobs during Phase I could range from 16,857 to 41,290 and at completion of the master plan from 64,387 to 163,297. Differences in the numbers stem from assumptions of where products and jobs are generated (for example, lumber purchased from the Northwest instead of Los Angeles).
 Public Sector Benefits
 "While Playa Vista's impact on creating jobs and stimulating the local economy is significant, equally important is Playa Vista's contributions to city and county revenues," said Nelson Rising, senior partner with the project's developer Maguire Thomas Partners. "Playa Vista will generate a substantial increase in new tax revenues for local governments which are facing even deeper cuts in essential city services and programs. This new source of revenues will be a welcome relief to government officials and taxpayers alike."
 A Fiscal Impact Report for Playa Vista, which analyzed the tax revenue benefits to the city and county of Los Angeles, was contained within the Environmental Impact Report (EIR). According to the Fiscal Impact Report, Playa Vista Phase I (at full buildout) will contribute total annual revenues of $16.6 million to city and county coffers with $8.8 million flowing to Los Angeles County and $7.8 million to the city.
 At full buildout of the entire master plan, annual revenues will total more than $68.9 million with $38.6 million being directed to Los Angeles County and $30.3 million to the city. Revenues to the city and county will be generated primarily by property, sales and hotel taxes and business license fees.
 The Playa Vista Master Plan includes 13,088 homes, 5 million-square- feet of office space, 595,000-square-feet of retail space, 1,050 hotel rooms, a marina with 350 boat slips and 579,000-square-feet of community serving uses. More than 51 percent of the community will be open space, including the 261-acre restored Ballona Wetlands.
 -0- 7/26/93
 /CONTACT: Barbara Casey of Casey & Sayre, 310-458-1224, for Kenneth Leventhal & Co./

CO: Kenneth Leventhal & Co. ST: California IN: SU:

JL-BP -- LA034 -- 5920 07/26/93 17:20 EDT
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Publication:PR Newswire
Date:Jul 26, 1993

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