In support of the City of Los Angeles’ Chief Legislative Analyst, KMA was part of the negotiating team that created an assistance package for the hotel component of this large mixed-use, high rise project. KMA conducted numerous market and financial analyses evaluating the feasibility of the office, retail and residential components of the project and structured a phased assistance program depending on how the project was phased. Services provided by KMA included:
Market Research – KMA evaluated the residential and hotel markets to identify appropriate demand and pricing assumptions.
Pro Forma Analysis – KMA prepared a series of pro formas evaluating the costs, revenues and feasibility of the project.
Public Revenue Analysis – KMA prepared an estimate of the public revenues generated by the project, including TOT, property tax, sales tax, utility users taxes, parking taxes and business license fees.
Public Assistance Structure – Based on the Project’s feasibility gap and estimated public revenues, KMA assisted the City with structuring a subsidy deal to promote project feasibility