Project Rendering

LOS ANGELES-Korean Air and Thomas Properties Group have reached an agreement with hotel and building trade unions that is a key to the $1 billion redevelopment of the Wilshire Grand Hotel on the southwest corner of Wilshire Boulevard and Figueroa Street. The $10 million closure agreement between the hotel and Unite-Here/Local 11 provides the 480 existing hotel workers with severance pay and healthcare benefits and gives them recall rights when the new hotel opens, assuring them of the opportunity to reclaim their previous jobs. The schedule calls for the hotel to close in December 2011. Demolition will require one year, so construction on the new hotel will begin in December 2012 with expected completion in 2015.

The airline and Downtown L.A.-based Thomas—in announcing the agreement Wednesday—called the deal "a significant milestone in the planned redevelopment of the 3.2-acre site, a full city block in the heart of Downtown Los Angeles," a project that was reported on by GlobeSt.com in 2009 when first announced.

A.C. Martin Partners Design

The Korean Air-Thomas Properties Group proposal is to replace the existing 58-year-old Wilshire Grand omplex with two high-rise towers totaling approximately 2.5 million square feet: a 45-story tower housing a luxury hotel of 560 rooms topped by several floors with 100 residential units; and a 1.5 million-square-foot, 65-story office tower; and 275,000 square feet of public spaces including a spa, meeting space, retail shops and other amenities.  A major plaza will connect the two buildings and will provide pedestrian walkability throughout the block. The new Wilshire Grand is being designed by architectural firm A.C. Martin Partners of Los Angeles.

Overall Project View

Thomas also announced on Wednesday that the project has pledged to sign a project labor agreement with the Los Angeles-Orange Counties Building and Construction Trades Council. The announcement stated: "This agreement ensures that the highest trained and highest quality labor force will be used to construct this landmark project. Local hiring, apprenticeship and hospitality training programs are components of the project labor agreement in conjunction with a community benefits program being offered by the developers. As a result, a percentage of the workforce building this two and one-half million-square-foot project will be from the local region." The agreement with the unions "is the first of its magnitude in the city’s recent history,” according to Los Angeles City Council member Jan Perry, as quoted in the announcement by Thomas and Korean Air.

The Wilshire Grand redevelopment project has been moving through the public process since its announcement in April 2009. It is expected to move to the Los Angeles City Council early next year and, if approved, will start demolition in December 2011. Korean Air acquired the Wilshire Grand Hotel in 1989 when it was operated as Hilton Hotel & Towers. The airline also owns three hotels in Korea and another in Hawaii.