The government board overseeing the $3-billion Grand Avenue project on Monday unexpectedly rejected the developer's request for an eight-month delay to begin construction on the development across from the Walt Disney Concert Hall.
While both sides said they remain optimistic that the sprawling downtown Los Angeles development is on track, the vote is the strongest sign yet that government officials are growing concerned over repeated delays and hope to keep a tight rein on the developer they handpicked for the project almost four years ago.
Instead of approving developer Related Cos.' requested delay until February, the joint powers authority approved a motion by Los Angeles County Chief Executive William T. Fujioka giving the developer until Aug. 15. That's a much shorter period than expected, though one that could be extended when the authority -- made up of city and county officials -- meets in July.
"We have a number of questions we want to ask," Fujioka said. "This is the second extension. We are going to ask questions regarding that."
Fujioka and other officials would not provide details on the concerns they have about the requested delay, saying specifics would be discussed in closed-door negotiations.
Gerry Hertzberg, a spokesman for county Supervisor Gloria Molina, who chairs the joint powers authority, said there were still details about the delay that need to be worked out.
"Everybody wants the project to go forward," he said. "It's just how it happens is yet to be determined."
Still, one county supervisor, Michael Antonovich, suggested that the Frank Gehry-designed project be scaled back because of real estate market conditions.
"Given the stark economic climate," said Paul Novak, a planning deputy for Antonovich, "our best approach may be less of a 'grand' vision than the plan previously approved by the county and the city."
Novak suggested that the joint powers authority should revisit various components of the project, including the high-end retail stores and the five-star hotel.
Grand Avenue is the linchpin in the effort to revitalize downtown L.A. and to bring in more affluent residents and retailers.
The development would rise around some of the city's landmark cultural institutions, including Disney Hall, the Museum of Contemporary Art and the Music Center.
Related California President Bill Witte said after the meeting that his company would "just continue to work with the committee."
