Los Angeles officials started a countdown toward a deadline for developer China Oceanwide to remove graffiti and debris at an unfinished skyscraper project that's visible over the downtown to avoid a process that could force it to relinquish the property.
The City Council voted unanimously on Friday to mandate the developer to remove all graffiti at Oceanwide Plaza by Feb. 17. If the developer doesn't comply, the city plans to remove the graffiti itself and then bill the developer.
"They have to get their act together," said Councilmember Kevin de León, whose district includes the towers.
The abatement process can also result in the city demolishing portions of the property to get rid of what it is calling a public nuisance. The towers at Oceanwide Plaza have been targeted for nearly two months by vandals breaking into the site and tagging windows on dozens of widely visible upper floors. The photos went viral online with the damage looming over the downtown of the nation's second-largest city, an area that's been less active since the pandemic accelerated remote work and stalled the office market.
León said the developer has been notified via email, telephone, fax and internet.
Oceanwide Plaza is a three-tower complex — with the tallest building reaching 53 stories — set in a high-profile location adjacent to Crypto.com Arena. The project was slated to include 504 condos and commercial space before construction halted in 2020 due to a lack of funding.
Representatives for Oceanwide Plaza have not responded to requests to comment from CoStar News.
Affordable Housing Nixed
The city isn't interested in buying the unfinished property and turning it into affordable housing as was previously considered because it would be too expensive, De León said. The Councilmember said it would cost at least $500 million buy the property and another $1 billion to finish the project.
The city also would need to resolve roughly $500 million in liens related to the property, De León said.
"We need someone to stand up with deep pockets," De León said.
The city could place a lien on the property if China Oceanwide isn't able to fund the cleanup of the project. That lien may supersede other liens on the property, according to one legal analyst.
The city may take aim at other negligent property owners as a result of its experience with Oceanwide Plaza, according to councilmembers at the meeting.
Councilmember Monica Rodriguez said the city needs to do a better job to provide incentives for real estate investment, adding that developers need to fulfill their obligations to finish projects. Graffiti and debris at abandoned projects that have a lack of security creates a "huge black eye" for the city, she said.
"It's an embarrassment," Rodriguez said. "Now we have to clean up the mess."
Councilmember Imelda Padilla said she can think of four other properties that are "mini versions" of Oceanwide Plaza.
"We have these all these all over Los Angeles," Padilla said.