The Lorenzo Project - which will be among the largest development projects in South LA - will include a sprawling apartment complex and 34,000 square feet of retail space. Courtesy of Latham & Watkins LLP.
Clarification: On March 7, we added language to clarify UNIDAD's role in negotiating the agreement
Local activists welcomed the city planning commission’s decision to approve plans for a $250-million apartment and retail complex that will provide medical services to 20,000 people, create jobs with a living wage, and build housing units for low-income residents.
The commission’s unanimous decision earlier this month to approve the plan, known as the Lorenzo Project, came after protracted battles between South LA residents and developer Geoffrey H. Palmer over how to best utilize the land.
“We are really thrilled with the agreement,” said Serena Lin, staff attorney for Public Counsel, the public law center that worked on behalf of the residents. “The planning commission heard what the residents were saying.”
They aren't the only ones pleased with the outcome.
James Arnone, a partner at Latham & Watkins who represents Palmer, said the developer was also happy with the deal. “The Palmer team is very happy that we were able to sit down with the community groups and reach a win-win compromise."
The complex — which is among the biggest development projects in South LA — will include 900 apartment units, 5 percent of which will be low-income housing.
It will also add 34,000 square feet of retail space.
The project will be located on the corner of Flower and 23rd Streets. It will be constructed next to the Exposition Line, a key transit line, and one stop away from the University of Southern California campus.
The site raised concerns among residents who point out that the complex, which will be built on land that was formerly owned by the Los Angeles Orthopaedic Hospital, was originally restricted to medical and educational purposes only.
In response, Lin led a team of lawyers to negotiate a “community benefits agreement” with Palmer focusing on meeting the needs of local residents.
As part of the deal, the developer agreed to $9.5 million in concessions that included 7,500 square feet of the project community based health care services, additional funds for construction costs for healthcare services and healthcare outreach efforts.
“The medical facilities provided under the agreement were the product of community concern over removing community facilities in this medically underserved area,” said Adrian Martinez, staff attorney with the Natural Resources Defense Council.
Lin represents UNIDAD, a coalition of South Los Angeles residents and community based organizations that advocate for affordable housing, health care, and job creation. The group attended Planning Commission hearings to demand that the community's needs be heard and met, resulting in the community benefits agreement.
The community benefits agreement also mandates that Palmer provide job training and small businesses assistance in addition to setting aside a third of the construction jobs for local residents.
The jobs will pay a “living wage” which exceeds minimum wage standards.
“This CBA (community benefits agreement) is a game changer,” Lin said. “It sets the stage for how the city should be approaching any building around transit.”
But the plan isn’t perfect. Some critics have complained that the 5 percent requirement to provide low-income housing units is inadequate.
In response to their concerns, Arnone said the developer agreed to put up about $1 million to acquire or develop new affordable housing in South Los Angeles.
Martinez thinks the Lorenzo Project sets an important bar for developers.
“This is just one project in a host of new development that will be undertaken in the region," Martinez said. "(The Natural Defense Resources Council) will continue to push for affordable housing near our new transit investments.”
The plan will be reviewed by the LA City Council and the California Redevelopment Agency. If approved, the project is expected to open in 2013.
