Last month, a federal bankruptcy judge cleared a joint venture led by KPC Development Co. and Lendlease to acquire the notorious Oceanwide Plaza project in Downtown Los Angeles. To complete the long-stalled tower complex, the project's backers are looking for a little help from the City of Los Angeles.

In a motion introduced earlier this week, 14th District Councilmember Ysabel Jurado indicates that the KPC and Lendlease joint venture wishes to explore an incentive agreement similar to others granted to Downtown hotel developments to finance the hotel. Such incentive agreements, which typically allow the developer to retain a portion of the transient occupancy tax revenue generated by the hotel that would otherwise go to City coffers in order to finance the construction.

Oceanwide Plaza includes a 184-room hotel within the largest of the three towers - a 49-story building along the south side of 11th Street between Figueroa and Flower Streets. The project is to also include 504 condominiums, a 150,000-square-foot retail podium, and a block-long LED sign when complete.

Oceanwide Plaza prior to the stop of constructionHunter Kerhart Architectural Photography

In the deal approved by the bankruptcy judge, the KPC and Lendlease joint venture is expected to pay $517 million in credit and cash to acquire the site and spend an additional $800 million to complete construction. In addition, the developers have agreed to commence clean up on the graffiti which covers all three of the unfinished buildings. The cleanup is already underway, and is expected to be completed before the end of 2026.

Approval of an incentive agreement, such as the one which helped to support the Fig + Pico development that created the AC and Moxy Hotels one block south, KPC and Lendlease will pay $150,000 for the City to commission a study to analyze the project and the need for any incentives. Jurado's motion has been referred to the Council's Economic Development Committee for consideration.

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