LA County CEO refutes reports of $290m retrofit project for newly acquired building

Los Angeles County's CEO denied the county was embarking on a nearly $300 million seismic retrofit of its recently purchased high-rise office building, and agreed to report back to the board on plans for occupying the facility.

The county purchased the Gas Co. Tower building last year for $200 million to become the new home of the county's administrative offices. The purchase was billed as a cost-saving move for the county, eliminating the need to lease office space while also moving its staff into a more structurally sound building than the current Kenneth Hahn Hall of Administration in the Civic Center.

The building already meets seismic safety standards, since it was built to meet the requirements that were in place at the time it was constructed.

The county Department of Public Works, however, recently obtained estimates for additional seismic retrofitting of the building, putting the cost of such work between $290 million to $297 million. That number raised eyebrows among some board members.

"I was surprised to learn that we would be spending over $290 million to retrofit a skyscraper that cost us only $200 million to purchase," Supervisor Janice Hahn said during Tuesday's board meeting, calling for more transparency around the costs of the building.

County CEO Fesia Davenport clarified that no such project was in the works and no money was being spent on seismic retrofitting of the office tower. She said no project of that magnitude would be undertaken "unless this board approves it."

Davenport said that during discussions with the board last year, county staff believed the board wanted to receive a comparison of possible costs for retrofitting the new building versus the current county Hall of Administration. County staff noted during the discussion that the cost of doing a seismic retrofit on the current Hall of Administration would be about $700 million.

Concern among the board members about the supposed retrofitting work prompted Supervisors Hilda Solis and Lindsey Horvath to introduce a motion during Tuesday's meeting calling for an immediate suspension of any work relating to a seismic retrofit of the building pending a report on how the work would be financed.

The motion also called for a report in 60 days on the county's plan for moving departments into the building. 

"I think we need to be better planners ... and be forthright with all our public because it does make me feel we need to have more information," Solis said Tuesday.

County officials said there are about 129 county workers already in the Gas Co. Tower, with more than 300 expected to be working from the facility by the end of the year.

Davenport said her staff is preparing plans for occupying the building and she would report back to the board on those plans. But she stressed that the county was not losing any money on the building.

"Right now the Gas Co. Tower is cost-neutral to the county," Davenport said. "There are still tenants in that building paying rent ... to lease the office space. They will move out of the Gas Co. Tower over a matter of time."

The office tower is expected to strictly house county administrative offices. The current Hall of Administration would continue to be used for board meetings and to house public-facing county services.

Additional reporting by City News Service.