LOS ANGELES-Capitol Records Inc. will receive $4 million of taxpayer money in a development deal that the Los Angeles City Council just barely passed, with a vote of 8 to 4.

The deal will keep Capitol Records in Hollywood, but the firm will have to spend more than $20 million in renovations to its landmark building. The additional $4 million from the city will be used to aid firm in renovating a nearby office tower, as well as adding employees to its current workforce.

The council’s approval was accompanied by a request for an investigation of the city’s purchase of an adjacent parking lot, which was originally appraised for half the amount the city paid for it. The Community Redevelopment Agency bought the lot for $1.45 million in 1998, despite an appraisal that placed its value at $795,000. Apparently, an agency administrator ordered a second appraisal that justified the $1.45 million payment, but it was not completed until after the board had already voted to buy the parcel at the higher sum.Capitol Records will purchase the lot for the full amount the city paid for it.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.