The Los Angeles City Council voted unanimously to spend $150,000 on a consultant to analyze the economic development of a proposed hotel at Oceanwide Plaza, according to municipal records. The vote follows a federal bankruptcy court approval of a $517 million sale agreement for the stalled downtown development, which was previously known locally as “graffiti towers.”
City Action and Funding for Oceanwide Plaza Hotel Analysis
During a Tuesday session, the Los Angeles City Council approved the funding to evaluate potential development incentives aimed at helping establish a new hotel within the property. According to public records, the council is likely to ask the developer to provide the funding or reimburse the city for any financial, economic, or consulting services required to evaluate the proposed project. The council’s vote had no discussion on the matter.
Additional coverage from muyni.com noted that the Economic Development and Jobs Committee previously approved the motion in a 4-to-0 vote on Tuesday, Aug. 18, 2026. Introduced by Councilmember Ysabel Jurado and seconded by Councilmember Bob Blumenfield under council file 26-1105, the motion relates to evaluating the project and potential economic development incentives for the hotel component, though the record did not identify any specific incentive amount or city department obligation.
Bankruptcy Court Approval and Property Background
The municipal actions follow a July announcement from Hilco Global, the court-approved broker for the bankruptcy sale. U.S. Bankruptcy Judge Deborah Saltzman approved the $517 million sale agreement, which includes remediation work at the site. According to Hilco Global, clean up of graffiti was expected to be complete within three months at the location.
Located at 1101 S. Flower St., Oceanwide Plaza sits across Figueroa Street from Crypto.com Arena, L.A. Live, and the Los Angeles Convention Center. The 1.5 million-square-foot project consists of three high-rise towers, including a 49-story tower designed to house an 11-story luxury Park Hyatt Hotel above residential floors. Construction on the multi-use complex has been stalled since 2019, when Beijing-based developer Oceanwide Holdings could no longer finance the $1 billion project.
Did You Know? Oceanwide Plaza spans 1.5 million square feet and features three high-rise towers, including a 49-story structure originally designed to house an 11-story luxury Park Hyatt Hotel above residential floors across the street from Crypto.com Arena.
Acquisition Details and Developer Plans
In February, Hilco Global announced an agreement for KPC Square LLC to purchase the property from Oceanwide Plaza LLC for $470 million. The purchasing entity is a new joint venture owned by affiliates of Oceanwide senior creditors The KPC Group, which bills itself as a global enterprise advancing real estate and healthcare, and Lendlease, the original contractor for the project. Both the city and county of Los Angeles withdrew objections to the bankruptcy sale following months of negotiations facilitated by Bradley Sharp, Oceanwide’s chief restructuring officer.
Furthermore, Councilmember Jurado’s motion indicates that the developers wish to explore an incentive agreement—similar to arrangements granted to other downtown hotel developments like the Fig + Pico project—which typically allows developers to retain a portion of transient occupancy tax revenue that would otherwise go to city coffers.
Expert Insight: Municipal consulting allocations and incentive explorations often serve as formal mechanisms for incoming developers to test the viability of public-private financing structures, particularly for large-scale, stalled urban assets requiring substantial capital infusions to restart stalled construction.
Frequently Asked Questions
What is the purpose of the $150,000 city expenditure?
The Los Angeles City Council voted to spend $150,000 on a consultant to analyze the economic development of a proposed hotel at Oceanwide Plaza and to evaluate potential development incentives.
Who are the new owners of Oceanwide Plaza?
A U.S. Bankruptcy Court approved a sale agreement to a joint venture owned by affiliates of Oceanwide senior creditors The KPC Group and Lendlease.
Why was construction on the project originally halted?
Construction on the complex has been stalled since 2019, when the original Beijing-based developer, Oceanwide Holdings, could no longer finance the project.
How will the city handle the cost of the consulting services for the hotel evaluation?
Worth a look