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Council pauses vote on LAWA purchase/leaseback of motel, restaurant and billboards near LAX to gather more details
Summary
The council continued action on Los Angeles World Airports' proposed purchase and leaseback of a Travelodge, a Denny's and five billboards near LAX to Feb. 8, requesting additional information on price, revenue and tax implications.
The Los Angeles City Council voted on Feb. 1 to continue consideration of a Los Angeles World Airports (LAWA) request to purchase and lease back property at 5535–5547 West Century Boulevard — including a Travelodge, a Denny's restaurant and five adjacent billboards — and set the item for further review on Feb. 8.
Laurel Cox, speaking for LAWA, told the council the owners voluntarily offered the property for sale and that the proposed transaction would include the billboard revenue being managed by the department until the next lease cycle. Cox described the parcel as about a mile east of LAX and said the owners asked to include a leaseback as a term of sale.
A member of the public, and several council members, raised questions about the purchase price reported in staff materials ($11,600,000) and the projected annual lease revenue the department would receive under the proposed arrangement (~$624,193 per year). Appraiser Eve Williams said the Travelodge and Denny's currently produce $383,183 in annual revenue to the department under the purchase/leaseback arrangement; billboards would generate $241,075 annually. Williams explained the appraisal treated the property as a single parcel and said the land value could rise in 5–7 years as the area and potential airport-related development change.
Council members expressed concerns about whether the proposed transaction is properly tied to noise mitigation or the airport's land-acquisition plans. Staff clarified the purchase was not part of a noise-mitigation PFC application and is adjacent to a Phase 1 noise sampling area; LAWA characterized the acquisition as a strategic, opportunistic purchase to provide flexibility for potential future airport needs or nonairport uses. Several members asked for additional information about property tax treatment if the city acquired the parcel, the timeline and justification for purchase, the financial returns, and whether the acquisition could obligate the city to acquire adjacent properties in future.
Because several council members said they needed additional detail — including written answers to tax and appraisal questions — the council continued the item to Feb. 8 and asked LAWA staff to supply requested analyses before that date.
No vote on acquisition authority or financing was taken on Feb. 1; the item was continued by unanimous consent after a request for additional materials.
