The developer behind the massive Grand Avenue project has met all of the required milestones on the downtown development but probably won't meet next month's deadline for beginning construction.
Last year, Related Cos. agreed to pay financial penalties to the Los Angeles Grand Avenue Authority if ground wasn't broken by Feb. 15. Penalties would total $250,000 a month until the project breaks ground.
If construction on Grand Avenue has not begun by February 2011, the authority has the right to renegotiate the deal.
With the current state of the credit market, it is likely that Related will pay some penalties to the authority starting next month.
Related officials Monday told the joint city-county authority overseeing the project that they have met all the deadlines required by the panel but that the $3-billion project will not move forward until the developer can obtain funding for the project.