LOS ANGELES (CNS) - Mayor Karen Bass and other officials broke ground Wednesday on a mixed-use project featuring a new Costco and 800 apartment units in South L.A., which they say will provide local residents with housing and job opportunities.
Developed by Thrive Living, a national real estate firm, the project known as 5035 Coliseum will replace a former office property in Baldwin Village. The Costco will be on the street level with 800 units of housing above for families, seniors and others.
Of the 800 units, about 184 -- or 23% -- will be dedicated to low- income households.
"We are breaking with the old ways of doing things and moving Los Angeles forward. Unprecedented action driven by urgent collaboration in both the public and private sector is what is expected and that's what we are delivering today," Bass said in a statement.
"I used to live just minutes from here -- and I know the hundreds of housing units, the thousands of jobs and the new wave of resources that this project will bring to this community has potential to make a generational impact on this neighborhood," Bass continued. "I want to thank all the partners who worked together to achieve today's milestone."
According to the developer, the project is expected to take two and a half years to complete. It will feature amenities such as a fitness center, high-tech shared workspaces for residents, study space for students, community rooms connected to courtyards and a rooftop pool.
"We couldn't be happier to redevelop this underutilized property into a community asset that creates jobs, generates tax revenues, and addresses the shortage of affordable and workforce housing," Ben Shaoul, founder of Thrive Living, said in a statement.
The Costco will offer food, optical services, a pharmacy and delivery. The company estimates that up to 400 jobs will be created at the location. Construction for the mixed-use project is estimated to support thousands of jobs.
"The new local jobs and the first-rate shopping experience will be a great addition to the community," City Councilwoman Heather Hutt, who represents the 8th District, encompassing Baldwin Village, said in a statement. "And importantly, new quality apartments will help improve residents' quality of life and help Los Angeles continue to make progress in addressing the housing shortage."
Jordan Brill, a partner with Thrive Living, said local residents had asked for a Costco to anchor the project. He added, "Costco's principles and mission fit seamlessly with our vision for this project."
It is the first project to receive approval in Los Angeles under the Affordable Housing and High Road Jobs Act (AB 2011), a state law that took effect on July 1 of last year, according to the developer. The law also streamlines approval of housing and mixed-use projects that meet certain affordability, environmental, zoning and labor criteria, and are located in areas zoned for office, retail and parking uses.
Gov. Gavin Newsom signed AB 2011 into law following a unanimous approval in the state Senate, and an overwhelming show of support in the state Assembly. Newsom described the law a "game changer."
"Today, Thrive Living and Costco are breaking ground in more ways than one, with an incredible collaboration that uses our new state laws to transform an underutilized space into a prosperous housing project and retail center, with 184 homes dedicated for low-income residents," Newsom said in a statement.
Assemblywoman Buffy Wicks, D-Oakland, a lead author of the law, noted that projects that comply with AB 2011 standards are exempt from the California Environmental Quality Act, expediting developments from application to construction.
"We need more housing built quickly and at an accessible cost, and AB 2011 is an important tool to make that happen," Wicks said in a statement.
The bill also established certain labor requirements, mandating that projects of 50 units or more shall provide workers with prevailing wages and health benefits. Frank Hawk, executive secretary treasurer of the Western States Regional Council of Carpenters, said his organization sponsored the law because they wanted to "spur the construction of affordable and mixed-use housing projects" throughout the state.
Robert Sausedo, executive director of Community Build, another labor group that supported the law, added it's "great news" that the project is coming to life.
