With more than 7,500 properties owned by the city of Los Angeles within its borders alone, it’s no secret managing L.A.’s massive real estate portfolio is a big job. That’s why L.A. Controller Ron Galperin has proposed the creation of a nonprofit organization to oversee city-owned real estate.
The Los Angeles Municipal Development Corporation would be in charge of managing how city properties are used and determining whether they could better serve L.A. neighborhoods. Currently, there is no organization responsible for this.
“The city of Los Angeles does many things well, but we do not have a central agency with the industry expertise to get the most out of the thousands of properties we own,” Galperin said. “If we are more strategic about our real estate holdings, we will be able to do more for our communities.”
Galperin also said that while many city-owned properties are parks, recreation centers, parking lots or administrative buildings, some are vacant or underutilized, presenting economic development opportunities. Better management of these properties could also identify potential locations for new housing, Galperin said.
Los Angeles wouldn’t be the first city in the United States to form such an organization. New York City’s Economic Development Corporation, which manages its city-owned properties, has used its data and oversight to bring in $536 million from 46 land transactions over the course of its existence.