News Summary
The Los Angeles County Board of Supervisors is alarmed by unexpected seismic upgrade costs following the acquisition of the Gas Company Tower for $200 million. With an additional $230 million contract for seismic upgrades revealed, supervisors express concerns about not being fully informed of these costs. Some are urging a suspension of the proposed upgrades amid financial constraints. The situation underscores critical tensions between modern facility needs and maintaining historical structures, raising significant questions about the county’s financial integrity and public service effectiveness.
Los Angeles, CA – The Los Angeles County Board of Supervisors is expressing growing concern over unexpected seismic upgrade costs associated with their recent purchase of the Gas Company Tower, which cost $200 million—significantly below its pre-pandemic value of over $600 million. This financial decision has taken a complicated turn now that a looming $230 million contract for “voluntary seismic upgrades” has been revealed.
Approximately nine months after the acquisition, some supervisors are experiencing “sticker shock,” claiming they were not fully informed about these potential additional costs at the time of the purchase. Supervisor Janice Hahn, who opposed the acquisition, highlighted that these upgrade expenses could effectively double the original purchase price of the tower.
In response to the unexpected financial burden, Supervisors Hilda Solis and Lindsey Horvath have initiated a motion aimed at immediately suspending all seismic work on the tower. Horvath noted her surprise that seismic upgrades were still on the agenda, particularly amid significant budget constraints that Los Angeles County is currently facing.
The financial situation in Los Angeles County is precarious, with anticipated federal budget cuts possibly leading to major reductions in health services and other essential programs. Additionally, the County is on the hook for a $4 billion settlement concerning sexual abuse cases and has recently negotiated employee raises that are projected to cost around $2 billion, adding pressure to the already strained finances.
Prior to the tower’s purchase, estimates for retrofitting the existing Kenneth Hahn Hall of Administration to withstand earthquakes were around $700 million. In contrast, earthquake-proofing the Gas Company Tower was estimated at approximately $400 million. Officials based the decision to acquire the tower on earlier projections that indicated significant cost savings compared to upgrading older facilities, which have more than $1 billion in deferred maintenance costs.
Critics of the purchase have raised concerns that prioritizing new office space over necessary upgrades to public service facilities may constitute a grave oversight. Union representatives have also voiced their dissatisfaction, claiming that labor negotiations were undermined by the surprising costs entailed in the tower acquisition.
The proposed seismic upgrades would focus on reinforcing connections within the tower’s “steel moment frame,” enhancing its ability to withstand earthquake damage. County executives defend the necessity of these upgrades, framing them as forward-thinking measures aimed at safeguarding the long-term safety and functionality of the tower for county operations.
Meanwhile, some family members of Supervisors have expressed apprehensions about what the acquisition will mean for the Civic Center, where the current county headquarters are located. The County has plans to transition employees into the Gas Company Tower over a three-year timeline, with some already beginning to make the move.
This developing situation highlights the ongoing tension between the need for modern office spaces and the preservation of historical civic structures among county officials. As the Board of Supervisors deliberates on these matters, the implications for the county’s financial integrity and public service effectiveness remain significant.
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Additional Resources
- Los Angeles Times: L.A. County Bought the Gas Company Tower for $200 Million
- Los Angeles Times: GCT Upgrades and Seismic Concerns
- Daily News: Will L.A. County Abandon Hall of Administration?
- CoStar: Correction: Special Servicer Takes Over Gas Company Tower
- Commercial Search: Downtown LA Tower Trades for $200M
- Wikipedia: Earthquake
- Encyclopedia Britannica: Seismic Wave
- Google Search: Los Angeles County Finance
- Google News: Gas Company Tower
- Google Scholar: Seismic Upgrades
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
