Community Praises Hollywood & Vine Developers for Community Benefits Package; Agreement Will Bring Living Wage Jobs, Affordable Housing and Job Training to Hollywood

Business Wire, June 17, 2004

LOS ANGELES -- A coalition of Hollywood community groups today lauded developers Legacy Partners and Gatehouse Capital for signing a community benefits package that will bring living wage jobs, affordable housing and job training opportunities to Hollywood.

The benefits package was negotiated as part of Legacy and Gatehouse's proposed development--a mixed-use project encompassing the block around the Metropolitan Transportation Authority's Hollywood/Vine Red Line subway station. The new development will be built around the historic Taft Building on the site.

"The community benefits agreement is an excellent example of fair and responsible economic development," said Father Michael Mandala, president of the Hollywood Interfaith Sponsoring Committee. "Legacy Partners and Gatehouse Capital should be applauded for their commitment to the Hollywood community."

"The signing of this agreement ensures tangible benefits to Hollywood, including good jobs, affordable housing and vital neighborhood services," added 13th District Councilmember Eric Garcetti, who represents the area. "It proves that developers can do well and do good--and that there's no place better than in Hollywood."

Under the community benefits agreement, the developer has agreed to comply with the City's living wage policy; institute a first source hiring policy that targets job applicants who live near Hollywood and Vine; set aside 20 percent of the rental units as affordable housing; contribute to local job training programs; and help fund a health care access outreach program.

The agreement was negotiated with the assistance of the Los Angeles Alliance for a New Economy (LAANE). As part of its accountable development program, LAANE has successfully negotiated agreements ensuring that developers provide quality jobs and community benefits in exchange for public subsidies.

The Hollywood and Vine project will include a 300-room W Hotel managed by Starwood Hotels & Resorts Worldwide; 262 apartments; 96 W Residences; more than 67,000 square feet of retail space; and 1,160 parking spaces.

"Legacy and Gatehouse are very excited to participate in this landmark development in Hollywood, " said Dennis Cavallari, managing partner of Legacy.

"After years of planning, the project is really beginning to gain momentum," said Marty Collins, president of Gatehouse. "We look forward to breaking ground soon at this world famous intersection."

The project is a joint development between Legacy Partners and Gatehouse Capital, in cooperation with the Community Redevelopment Agency and the ground lessor, Metropolitan Transportation Authority (MTA). In March, the MTA approved the conceptual site plans and authorized staff to enter into the Joint Development Agreement. The CRA has approved both the conceptual site plan and the Disposition and Development Agreement.

About HISC: Hollywood Interfaith Sponsoring Committee (HISC) is a coalition of 12 churches representing 24,000 congregants organized to provide a voice for unrepresented community members. Last year, HISC organized 1,100 residents to meet with Councilmember Garcetti and Mayor Hahn to discuss the lack of affordable housing in the Hollywood community. As a result of this meeting, Hahn and Garcetti promised to build 500 units of affordable family housing in Hollywood in the next three years. In addition to advocating for more affordable housing, HISC has created a pocket park and is engaged in initiatives to improve healthcare, public safety, and youth recreation opportunities in Hollywood.