La Kretz Innovation Center: A Pay to Play Pet Project

LA WATCHDOG-The La Kretz Innovation Campus is a welcome addition to the City’s economic development infrastructure.  Located on 3.2 acres in the Arts District, this one story, renovated warehouse consists of 60,000 square feet of “modern, creative office and laboratory spaces” that will serve as an “incubator of startups and early stage businesses focused on the commercialization of clean technologies.”   

Importantly, this tasteful, LEED certified development respects the character of the neighborhood, a rare feat in modern day Los Angeles. 

There is also an attractive 25,000 square foot neighborhood park that will be leased to and operated by the Department of Recreation and Parks. 

This $43 million development was named after Morton La Kretz, a philanthropist and real estate speculator who made a tax deductible contribution of $3 million in return for the naming rights to the Campus.   

He is also one of the forces behind the controversial 1.4 million square foot, Crossroads of the World development that is located near Sunset and Highland, right in the middle of already traffic congested Hollywood. This massive mixed use development does not respect the character of this low rise neighborhood as it will have buildings that are 400 feet tall, will house 1,250 residential and hotel units, and will have 280,000 square feet of office, retail, and commercial space.      

Needless to say, this massive project will require the approval of local Council Member Mitch O’Farrell, the Planning and Land Use Management Committee chaired by Jose Huizar, the Herb Wesson led City Council, and Mayor Eric Garcetti who represented this part of Hollywood when he was a member of the City Council.  

In September, Jose Huizar made a motion (Council File 16-1109) calling for the Chief Legislative Analyst and the Economic and Workforce Development Department to report on the progress of the Campus, including incubating early stage green businesses and supporting energy and water conservation through research and education.  

But no report would be complete unless it analyzed the adequacy of the economic returns to our Department of Water and Power which was forced to “invest” $20 million in this pet project of Eric Garcetti and Jose Huizar and to absorb the operating costs of $895,000 a year.  The report should also include an analysis of whether the bargain rents from “green” tenants are consistent with the market and the high cost of the Campus. 

This report should also address La Kretz’s use of philanthropy for his own personal gain.  This would include not only the Crossroads of the World development in Hollywood, but his two controversial projects on the Los Angeles River, one in Atwater Village and the other across the river in Elysian Village.  

La Kretz should be complimented for his generosity in helping to fund the Campus.  And while he has not taken the well-travelled road of contributing to the campaign coffers of the Mayor and the members of the City Council, he has achieved a level of influence through his charitable gifts that may result in the approval of this massive, out of character development in Hollywood.  More than likely, this will result in estimated profits in excess of $100 million. 

Not a bad return on a tax deductible $3 million investment. 

The pay to play culture surrounding the Crossroads of the World development is just another example of why we should VOTE YES ON MEASURE S on March 7 so we can help stem the corruption that has infected City Hall to the detriment of our neighborhoods. 


 (Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and is the Budget and DWP representative for the Greater Wilshire Neighborhood Council.  He is a Neighborhood Council Budget Advocate.  Jack is affiliated with Recycler Classifieds --  He can be reached at: