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During an onstage appearance as part of Bloomberg’s Screentime conference in Hollywood last week, 2022 LA mayoral candidate and billionaire Rick Caruso made it clear that his namesake company, Caruso, has no plans of building in LA anytime soon, as reported by real estate news site the Real Deal.“As a company that takes great pride in being L.A. based, we no longer build within the city of Los Angeles because of the unpredictability, the cost of doing it [and] the multiple layers of bureaucracy you have to go through for approvals,” Caruso said, according to the Real Deal. “And I made that decision long before I ever ran for office.”He added, “What people need to understand, what leadership needs to understand, is money is going to travel in directions that have the less friction to it, the less risk to it. And L.A. is redlined now, because of the fires, because of the homeless problem, because of the crime problem. Find a crane in L.A. In 10 years, the lowest amount of housing is now.”During his remarks last week, Caruso attributed 40% of housing costs to regulations. “That includes the permitting process, parking requirements for multifamily, energy efficiency and seismic standards and environmental impact reviews,” the Real Deal reported. “Since 2023, developers can also tack Measure ULA, a city-specific tax on all property transactions starting at $5.3 million, on the other end of the deal, often making an eventual sale more difficult or less profitable.”
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Topic: Why a California mall king won't build in LA anymore (Read 78 times)
