The Los Angeles Board of Harbor Commissioners approved several amendments Thursday to contracts associated with its incoming San Pedro Public Market, a planned commercial waterfront where construction is expected to begin early next year.
The commission finalized several agreements with the developers of the SPPM, the first phase of which is expected to be completed in September 2021, and the commission increased the length of the terms of the lease for the market to 66 years instead of 50.
It also voted to approve a supporting resolution of an agreement that gives Osprey Investors, LLC a maximum of 80% ownership interest in the SPPM’s lease terms. Osprey put $30 million in equity financing into the $150 million project earlier this year, joining developers The Ratkovich Company and Jerico Development in creating the SPPM.
Commissioner Diane Middleton expressed some concern, saying she fears the project could end up like the Ports O’Call Village, a similar waterfront commercial district where the new market is planned.
The village was scrapped in 2013, as it had aged and revenue was not coming. The Ports O’Call restaurant was demolished in 2018, but nothing has been put in its place since.
“We don’t want to see happen with the San Pedro Public market what happened with Ports O’Call,” Middleton said, adding she had concerns about what could happen between now and five years hence with the project.
Mike Galvin, the Port’s director of Waterfront and Commercial Real Estate, said there have been significant preparations to the site, such as soil remediation and demolition of old buildings. Galvin acknowledged there have been some delays in the project, but they’re optimistic with it going forward.
The commission ultimately voted unanimously, 5-0, in favor of the changes.
It also awarded a $33 million contract to Griffith Company to construct a 1.9-acre, 30-foot-wide public promenade, with a four-acre town square and restroom facility as part of the SPPM.
In the summer, a bidding process for the town square took place, but bidding companies were either disqualified on technicalities or over budget, which delayed the start of construction until March 2020. Construction was initially set to begin in September 2019.
A 6,000-seat outdoor amphitheater is also part of the development plans.
The developers will also be responsible for costs associated with the preparation of an environmental assessment to determine any changes in environmental impacts associated with the development of a concert venue at the SPPM.