Los Angeles County’s decision to purchase the Gas Company Tower for $205 million has raised urgent concerns regarding the projected cost of seismic retrofitting, estimated to be around $397 million—over 90% more than the purchase price. This stark cost discrepancy didn’t surface during the initial discussions when the county’s Board of Supervisors approved the acquisition. Supervisor Janice Hahn has expressed her discontent, noting that moving offices away from the historic Kenneth Hahn Hall of Administration risks sending a negative message to the public while criticizing the project’s financial viability amid upcoming budget cuts exceeding 8%.
In light of the new financial estimates, the Board passed a motion requiring County CEO Fesia Davenport to halt any seismic retrofit activities and provide a transparent report on potential funding solutions. This pause aims to reassess the project amidst a tightening budget, characterized by increased financial pressures from federal cuts and legal payouts, as articulated by First District Supervisor Hilda Solis. The current utilization of the building is low, with only 129 employees occupying the vast 1.5 million-square-foot office space, prompting calls to maximize its efficiency and examine lease renewals that might incur unnecessary expenses.
The motion highlights a lack of awareness among some supervisors regarding the CEO’s planning, suggesting an urgent need for enhanced communication and accountability. Davenport’s previous assessments describing the tower as seismically compliant and in “turnkey condition” contrast sharply with the escalating costs of retrofitting, complicating the narrative for supervisors advocating for greater fiscal prudence.
The implications of these developments extend beyond immediate financial considerations. Supervisors must navigate the political landscape shaped by public perception, safety concerns, and fiscal responsibility. With the Gas Company Tower able to withstand significant seismic activity but posing risks of serious injury from falling glass, the ongoing discussions will likely draw public scrutiny as the county seeks to balance immediate safety measures with long-term financial sustainability.