lahipster

Wed, 27 Aug 2008 16:14:01 -0800

there will be no shows unless Hollywood Palladium venue is a stage hand union house they still have the roof off of this place Strife Plagues Palladium Renovation LABOR: Dispute between union, Live Nation puts pressure on venue. By BRETT SPORICH Los Angeles Business Journal Staff Just two months to go before the planned grand re-opening of the Hollywood Palladium, the iconic theater has a gaping hole in its roof. There’s plenty of plumbing work to be done, along with electrical and finish work. The stripped exterior still needs millions of dollars worth of refurbishing to be restored to its original splendor. As if that weren’t enough, the 1940s-era historic structure has become a pawn in a labor dispute between Palladium tenant and concert promoter Live Nation Inc. and a local of the International Alliance Theatrical Stage Employees. Local 33 of the union wants Live Nation to hire union stage hands in upcoming Palladium productions and admits to pressuring the Los Angeles Community Redevelopment Agency into not dispensing $2.5 million worth of funding that is critical to completing the project. More than 60 stage hands belonging to the local recently picketed in front of the Sunset Boulevard venue, denouncing both Live Nation and the redevelopment agency, which is planning to loan the money to building owner and developer Newport Capital Advisors. “We don’t have a problem with the Palladium’s owner and developer, because they have all union contractors on the job, but we have a big problem with Live Nation,” said IA Local 33 spokeswoman Cherri Senders. “We believe that it is absolutely outrageous that the city’s redevelopment agency would even consider giving taxpayer money to a business that not only can afford the cost itself, but that is non-union.” L.A.-based Live Nation, which is publicly traded on the New York Stock Exchange and is the world’s largest concert venue operator, declined to discuss the labor dispute or details of the restoration work progress. It is responsible for some $10.5 million worth of interior work of the restoration project, which has a total price tag of about $18 million. A company spokesman would only say that the company plans to open on schedule in mid-October. However, Newport Capital admits the funding is needed to complete its $7 million restoration of the Palladium’s exterior. The project would return it to its original finish, including installing custom fabricated storefront aluminum and glass window walls, a new marquee and facade lighting. “This really caught us by surprise,” said David Zak, principal of Newport Capital, referring to the labor dispute and pickets. “We thought we were doing something that was good for the city and the community.” The labor dispute is the latest twist in the long-running effort to rehabilitate the 68-year-old historic venue and return it to its former glory. During the real estate boom, the four-acre Sunset Boulevard site just east of Cahuenga Boulevard was being eyed more for its development value than anything else. That prompted the Los Angeles Conservancy to start a campaign to save the venue. But in April 2007 Newport Capital stepped in and bought the property for $68 million and promised to run it as a theater. It also reached an 18-year lease agreement with Live Nation to operate the venue. Newport, which has reserved the right to develop land around the venue in the future, later sought the $2.5 million loan from the redevelopment agency through a façade improvement program. July 3 memorandum by CRA Chief Executive Cecilia V. Estolano recommends the CRA’s board approve the loan, which would be issued at a 6 percent annual interest rate but can be forgiven incrementally during the next 18 years if Newport Capital meets certain requirements Estolano denied that the loan is being delayed. In fact, she said her agency stepped in to bring together both sides in the dispute, but declined to offer details. “We are bringing these parties together for the good of the community,” she said, during a brief telephone interview. It is unclear when the agency’s board will take up the loan request. However, Estolano maintained that the loan application was moving forward in a timely manner. Labor pressure Zak said he was unaware of the union’s protest until the day before the picketing took place. That’s when he was contacted by city redevelopment officials who informed him of the coming protest. But he said he is optimistic the loan will eventually come through once the labor dispute is resolved. “We’ve already met once with the union, and we plan to meet again to get this resolved so that we can stay on schedule,” Zak said. “I’m hopeful that we can work all this out.” In the meantime, he said, Newport Capital’s lender on the project, New York City-based Anglo-Irish Bank, and the city’s redevelopment agency are still handling the paperwork and fine print on the loan. However, not everyone is optimistic that the union and Live Nation will work out an agreement, or that the redevelopment agency will issue the loan if the dispute continues. John Tronson, a principal in the Hollywood office of Ramsey- Shilling Commercial Real Estate Services who represented Newport Capital in the theater’s acquisition, said if the loan doesn’t come through, Live Nation may be left holding the bag given how significant the loan is to the developer. The $2.5 million loan would fund more than one third of Newport Capital’s $7 million exterior renovation project. |

Johnny

Wed, 27 Aug 2008 14:53:54 -0800

Going to see Rise Against there too. Can't wait to see what they did to the place.

johnnyrox

Tue, 26 Aug 2008 22:09:36 -0800

Tickets for this event go on sale Friday, September 5th at 10am on www.livenation.com

Colfax

Tue, 26 Aug 2008 15:33:34 -0800

are they going to continue with full body cavity searches for all shows?

WagonMonster

Tue, 26 Aug 2008 10:13:51 -0800

Oh DAMN When do tickets go on sale?

torrmoz

Tue, 26 Aug 2008 10:01:09 -0800

Moz's shows there last year were the venue CLOSING shows, hence why you didn't see anything NEW in the place.

Farley Elliott

Tue, 26 Aug 2008 09:53:38 -0800

This Jay-Z reopening ceremony, with a band, seems to be one of those hafta-be-there moments.

ezfinn

Tue, 26 Aug 2008 09:49:08 -0800

I thought the Morrissey shows last year were supposed to be the grand re-opening? It's an awesome place to see a show. Brought me back to my high school days.

RamonDestroys

Tue, 26 Aug 2008 09:14:12 -0800

I can't wait for this place to open. It is one of my favorite venues in Los Angeles. I'm seeing Rise Against and Alkaline Trio there in November. I kind of want to see Jay-Z too.

LAist: Hollywood Palladium to Reopen in October with JAY-Z