The Los Angeles County Board of Supervisors on Wednesday approved the county’s purchase of the Gas Company Tower, one of the most prominent skyscrapers in downtown Los Angeles, clearing the way for the relocation of thousands of workers and utilities out of the city’s civic center.

In a 4-1 vote, supervisors gave county officials the final green light to move forward with purchasing the tower for $200 million.

The approval came over strong objections from Supervisor Janice Hahn, who warned that the purchase would sound the death knell for the civic heart of downtown and redirect the county’s workforce to a “soulless” office tower in Bunker Hill.

“None of you here are going to convince me that this is a good idea,” Hahn said before voting against the purchase, adding “absolutely not.”

County employees are currently housed in the Kenneth Hahn Executive Hall, a 1960s building named after Hahn’s father, a longtime county supervisor.

The building is one of several county properties considered vulnerable to collapse in a major earthquake. Officials estimate that rehabilitating the buildings and building a new one would cost hundreds of millions. probably safer An attractive alternative to some on the skyscraper board.

“If we know that this building is not seismically safe, then we have an obligation and a responsibility to take action,” Supervisor Holly Mitchell said from the room inside Hahn Hall where the board holds its weekly meetings.

County Chief Executive Fesia Davenport, whose office spearheaded the sale, promised the purchase would “save the county hundreds of millions of dollars” compared to the cost of rehabilitating Administration Hall and other county buildings.

No managers toured the building in person, according to a district spokesperson, but several of their employees did.

555 W. 5th St. The 52-storey tower at was considered one of the most prestigious office buildings in the city when it was completed in 1991. It has approximately 1.5 million square feet of space on 1.4 acres of land at the base of the Bunker. Top.

The price represents a steep discount from the building’s 2020 appraised value of $632 million, underscoring how far downtown office values ​​have fallen in recent years.

The district would get the $200 million Gas Company Tower for about $137 per square foot; this is still a bargain by historical standards. The state also agreed to pay an additional $5 million in closing costs for the transaction.

“This opportunity won’t last forever,” Davenport cautioned, adding that the county could finance the purchase in part from money set aside for capital projects.

Hahn said this transaction was akin to “robbing Peter to pay Paul.”

“The money used for this purchase is a steal from the funds used to keep this building afloat,” he said of Hahn Hall.

Richard Keating, the architect who designed the Gas Company Tower to appeal to corporate America, said it now makes sense for a public entity to take ownership.

“We are seeing a decline in the need for standard office use since the pandemic, which means lawyers, architects and accountants are doing things differently,” Keating said. “City and county employees are still hard at work in office spaces, but they are tired, old, sometimes worn out, and often no longer up to code in terms of earthquake safety requirements.”

“It’s a great time to take advantage of some of these office buildings that are more or less vacant.”

The move of hundreds of county employees to the Gas Company Tower would also remove stores, restaurants and other businesses from nearby blocks near Pershing Square, he said. “I think this is a good move all around.”

In recent years, the downtown office market has turned against landlords as many tenants reduced their office footprints in response to the COVID-19 pandemic, when it became more common for employees to work remotely.

Owner of the Gas Company Tower last year, That company, a subsidiary of Brookfield Asset Management, defaulted on its debt and the property was placed in receivership, where a court-appointed representative took custody of the building to help creditors recover the funds they lent Brookfield. The building has approximately $465 million in outstanding loans.

Other major tenants of the Gas Company Tower include law firm Latham & Watkins and accounting firm Deloitte. The county, as the landlord, will assume existing tenant leases.

Once the Gas Company Tower officially becomes property of the county, it will be removed from the tax rolls. The building’s property tax bill last year was more than $7.1 million, according to real estate data provider CoStar.

But tenants will be required to contribute an unspecified amount to their tax rolls through a “property interest tax” that could be levied on private companies that lease public buildings. Tenants in privately owned office buildings also often pay a portion of the landlord’s property taxes.

The building is in good condition and has a “remaining useful life” of at least 35 years, according to a recent property condition report for the current owner obtained by The Times.

The report also notes the tower and 333 S. Flower St. included in the deal. It was stated that the World Trade Center garage at was in need of approximately $1.3 million for urgently needed repairs and deferred maintenance. Additional long-term costs to maintain and modernize the properties are estimated at approximately $48.7 million over 12 years. Projected costs include roof repairs, replacing air conditioning systems and updating elevators.

The county currently occupies approximately 16.5 million square feet of office space for 38 departments, consisting of 6.9 million square feet of leased office space and 9.6 million square feet of owned office space, Davenport said. a note to the board I recommend purchasing the Gas Company Tower.

Davenport said the county spends about $195 million a year on leased office space and that the property it owns is “in bad shape and old.” Almost half of them are over 50 years old.

By moving staff away from both leased office space and older buildings in poor condition, the district avoids paying rent and the “significant” costs of seismic retrofit work and other necessary upgrades of older buildings, such as outdated air conditioning, plumbing and electrical systems. the note said. Funds allocated for seismic strengthening and other renovations of old buildings will be included in the payment for the Gas Company Tower.

Davenport said the county has inspected the building and will purchase it “as-is.” The Ministry of Public Works reviewed the seismic report on the tower and accepted the findings. The findings will remain confidential until the settlement is finalized, a county spokesman said.

Davenport said if the county chooses to complete seismic retrofit and other improvements at the Gas Company Tower, the county could realize a future return on its investment by selling the building when the market improves.

Southern California Gas Company said in september From its longtime headquarters in its namesake tower, 350 S. Grand Ave., where it has been the anchor tenant since the building’s completion. He said he plans to move to another skyscraper a block north at .

The utility has signed a long-term lease for about 200,000 square feet of eight-story space in the Grand Avenue building in Bunker Hill, commonly known as Two California Plaza, and is expected to move in in spring 2026 after construction of new offices, the new landlord said. . The Gas Company will also have an office on the ground floor to serve customers.