CRA Approves $4 Mil to Keep Capitol Records

LOS ANGELES-The board of the LA Community Redevelopment Agency has agreed to put $4 million of taxpayer money into a development deal that will keep Capitol Records Inc. in Hollywood and prompt the music company to spend more than $21 million to renovate its landmark office tower.

The agreement next goes before the City Council for a vote. Most observers say the deal will be approved, even though some councilpersons and even a CRA board member who voted for the subsidy have expressed reservations about some terms of the agreement.

In addition to modernizing the high-rise and adjacent office campus, Capitol Records’ $21-million renovation will include the construction of a parking facility on Vine Street. Capitol will also purchase an existing surface parking lot on Argyle Avenue from the CRA, which the record company will initially use for parking but may later use to expand its campus.