Business
Graffitied skyscraper in downtown Los Angeles poised for sale
Oceanwide Plaza, the bankrupt, unfinished development in downtown Los Angeles that became a canvas for trespassing graffiti artists, is officially on the market.
The Chinese owners of the stalled residential, hotel and retail complex towering over Crypto.com Arena have hired real estate brokers to sell the property to buyers who could restart the project after work stopped in 2019. Taggers recently covered its outer walls with graffiti visible from far away.
Likely bidders for the property include large institutional investors such as Blackstone Inc. and BlackRock, and cash-rich overseas sovereign wealth funds from the Middle East, Asia and Europe, property broker Mark Tarczynski said.
“I think there’s a broad range of buyers,” he said, “but the pool of buyers is small because of the size of the project.”
Tarczynski is part of a team from real estate brokerage Colliers and Hilco Real Estate that will market the property, which fills a large city block on Figueroa Street across from the arena and LA Live.
An April appraisal by Colliers submitted in a bankruptcy case involving the project estimated the as-is market value at nearly $434 million, Bloomberg said. Colliers also projected a cost of $865 million to complete the buildings, which are 60% finished.
Real estate developments stall from time to time as developers run out of money; but rarely do they fail in such a high-profile manner as Oceanwide Plaza, which was supposed to be a glamorous addition to the skyline and center of activity in the bustling sports and entertainment district of downtown’s South Park neighborhood.
Beijing-based Oceanwide Holdings bought a sprawling parking lot across from the arena in 2014 and soon set to work on a three-tower complex intended to house luxury condominiums and apartments, and a five-star hotel supported by upmarket stores and restaurants. It was also to include a massive electronic sign intended to help bring a Times Square flavor to Figueroa Street.
The international company ran into financial problems that coincided with a Chinese government decision to restrict the flow of outbound investment. Work stopped on Oceanwide Plaza in early 2019 as contractors building it stopped getting paid.
In February, general contractor Lendlease filed a petition for the involuntary Chapter 11 bankruptcy of Oceanwide Holdings to force a sale of the property and pay creditors who were demanding almost $400 million. Major creditors include Lendlease and EB-5 visa investors, who helped fund construction. Oceanwide also owes back taxes to Los Angeles County and money to repay the city for security put in place in response to the graffiti and other incidents including BASE-jumping paragliders leaping form the towers.
The city allotted nearly $4 million to remove graffiti and secure the property in February. The property is now surrounded by a tall metal fence.
While some real estate observers have speculated that it might make sense to raze the towers to make way for a different development, Tarczynski predicts that the next owner will finish the existing project.
“It’s about two-thirds of the way done, with about $1.2 billion already invested in it,” he said. “Why would you tear down a perfectly good project? It’s unimaginable.”
Oceanwide’s location in the center of downtown’s sports and entertainment district should help entice investors to finish the complex, Tarczynski said.
“Every bit of the potential synergy between Crypto.com Arena, LA Live and Oceanwide Plaza still exists,” he said, “and there is a huge demand for housing and also hotel demand. This remains an attractive project.”
The brokerage team expects to distribute financial information and other facts about the project to qualified buyers early next month and call for offers by the end of July, Tarczynski said. “We hope to be in escrow by October.”
Business
Waymo recalls thousands of its driverless cars after some failed to avoid flooded roads
Waymo is recalling 3,791 autonomous taxis after a software defect caused some vehicles to drive into flooded roadways, according to a recall report from the National Highway Traffic Safety Association.
The voluntary recall filed April 30 affects Waymo vehicles operating on the company’s fifth and sixth generation Automated Driving System. The software “may allow the vehicle to slow and then drive into standing water on higher speed roadways,” a NHTSA report said.
“Entering a flooded roadway can cause a loss of vehicle control, increasing the risk of a crash or injury,” NHTSA said.
The recall followed severe weather in San Antonio, during which a Waymo entered a flooded and impassable road, the company said.
In response, Waymo has increased weather-related constraints on its vehicles and says it is working on additional software safeguards.
“We have identified an area of improvement regarding untraversable flooded lanes specific to higher-speed roadways, and have made the decision to file a voluntary software recall with NHTSA related to this scenario,” a Waymo spokesperson said. “Waymo provides over half a million trips every week in some of the most challenging driving environments across the U.S., and safety is our primary priority.”
Waymo operates in 10 major cities and has issued prior safety-related recalls. Last year, the company recalled more than 1,200 autonomous vehicles after minor crashes involving obstacles in the road.
The Alphabet-owned company has also come under fire for safety incidents, including striking a child outside a school in Santa Monica earlier this year and fatally running over a neighborhood cat in San Francisco.
According to data collected by Waymo over 170 million fully autonomous miles driven, Waymo is 13 times safer than human drivers in crashes involving pedestrians.
The Mountain View-based company is currently ahead in the race to scale robotaxis across the country, with thousands of vehicles transporting paying customers in cities including Los Angeles, Miami and Phoenix.
Competitors Zoox and Tesla are trying to catch up with their own self-driving technology, but have yet to match Waymo’s scale and reach.
According to NHSTA, all affected Waymo vehicles received an interim software update to mitigate the issue, but a full remedy for the recall is still under development.
Business
Commentary: Trump’s ‘weird war’ on wind power will jeopardize our energy future and cost Americans billions
Trump is shelling out $2 billion of taxpayer money to kill wind power projects, but his hatred for the technology is based on myths
Picking the wildest fantasy promoted by President Trump as a basis for public policy is increasingly challenging — is it his yarn about schoolchildren being secretly abducted from their classrooms and given sex-changing operations? The notion that the vaccines given to children are like “a vat, like a big glass, of stuff pumped into their bodies?”
Here’s one that has disrupted the economics of renewable energy generation and will cost Americans billions of dollars: It’s Trump’s “completely weird war on wind power in the United States,” based on a sheaf of “fact-free arguments.”
That judgment comes from Steven Cohen, a climate policy expert at Columbia University, who points out that wind already accounts for 10.5% of U.S. energy generation, that it’s destined to continue growing — and that most of it is generated today in red states such as Texas, Oklahoma, Iowa and Kansas.
Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.
— Steven Cohen, Columbia University
There is no question that Trump’s weird war against wind is full blown. On the day of his second inauguration, he issued an executive order shutting down all new permits for offshore wind farms and ordered the Interior Department to review existing permits.
A federal judge in Massachusetts blocked the executive order in December, and his orders suspending work on existing offshore wind projects have been halted by other federal judges. The Trump administration has blocked or delayed as many as 165 wind projects on private land, citing “national security” concerns, according to the American Clean Power Assn.
Most recently, Trump has reached agreements with offshore wind firms in which the government will pay them a combined $2 billion to abandon their U.S. projects.
At some level, this crusade resembles Trump’s misguided effort to revive the American coal industry, which is on the glide path to inevitable extinction. In that case, Trump is waging an explicitly partisan and ideological battle. “We’re ending Joe Biden’s war on beautiful, clean coal,” he declared last April.
Trump’s anti-wind program is part of his campaign to dismantle U.S. renewables policy because of its roots in the Biden administration.
Additionally, multiple commentators conjecture that his hostility to wind originated in 2011, when he groused that an offshore wind farm would be visible from one of his golf courses in Scotland. He sued to thwart the “ugly” project, and lost.
But Trump has mustered other arguments against wind, on- and offshore, none of which holds water.
During a cabinet meeting in July 2025, he called wind “a very expensive form of energy.” In fact, on average it’s cheaper than natural gas, coal and nuclear generation. Perhaps more important, the cost has been coming down sharply as technology improves and the sector reaches critical mass: falling to eight cents from 21 cents per kilowatt-hour from 2010 to 2024 for offshore projects, and to 3.4 cents from 11.3 cents for land-based wind farms over the same period.
Trump blamed wind turbines for mass killing whales and birds. Neither assertion is correct.
The National Oceanic and Atmospheric Administration, a federal agency, says “there are no known links between large whale deaths and ongoing offshore wind activities.”
The Audubon Society reported in January that although wind turbines can present hazards to birds, “developers can effectively manage these risks without significantly increasing project costs.” The biggest risks to birds come from the climate: “Two-thirds of North American birds are at increasing risk of extinction from global temperature rise,” the society reported — a threat that wind power can ameliorate.
Trump spokeswoman Taylor Rogers didn’t respond to my questions about the derivation of his anti-wind stance, but told me by email only that “President Trump has been clear: hard-earned taxpayer dollars shouldn’t be wasted on unreliable and costly wind farms that pose serious threats to our national security. Instead, we should be strengthening and expanding our infrastructure that produces reliable, affordable, and secure energy like natural gas plants.”
That brings us to the recent deals with offshore wind developers. The largest single deal, signed in March, was with the French firm TotalEnergies, which is to receive approximately $1 billion from the federal government to abandon all of its U.S. offshore wind projects and invest instead in oil and gas projects, including a liquefied natural gas export facility in Texas.
In his March 23 announcement of the deal, Interior Secretary Doug Burgum called offshore wind “one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers.”
This is what Huck Finn would call a “stretcher,” given the decades of subsidies spooned out to the oil and gas industry, reaching more than $30 billion a year in federal and state tax credits, indulgent regulation of pollution and low-cost access to federal lands. Indeed, the investment firm Lazard recently reported that renewables, including wind, are a cost-competitive form of generation even without subsidies. (Lazard’s calculation is of the “levelized cost of energy,” meaning the average cost over a generating plant’s lifetime.)
TotalEnergies fell into lockstep with the Interior Department in its own announcement, explaining its willingness to renounce U.S. offshore wind power because “offshore wind developments in the United States, unlike those in Europe, are costly,” echoing the agency’s position that “the development of offshore wind projects is not in the country’s interest.” Never mind that one factor that makes U.S. offshore wind development costly compared with Europe is the Trump administration’s opposition.
The government subsequently reached an agreement to pay the French company Ocean Winds $885 million to walk away from two offshore wind projects, including one in the waters off California. Ocean Winds described the deal as one driven chiefly by economics, but hinted at pressure from the White House.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” Michael Brown, the chief executive of Ocean Winds North America, said when the deal was announced last month. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
The TotalEnergies deal, which the government has described as a “refund” of money the firm paid for its offshore leades, raised the hackles of congressional Democrats, who assert that it violates the law and constitution in multiple ways.
“We will hold you accountable for this billion-dollar ripoff,” Reps. Jamie Raskin (D-Md.), ranking member of the House Judiciary Committee and Jared Huffman (D-San Rafael), ranking member of the House Committee on Natural Resources, warned TotalEnergies CEO Patrick Pouyanné in an April 29 letter.
Among other infirmities Raskin and Huffman alleged, the government’s national security rationale for canceling offshore wind leases looks “fabricated”; the payout violates the statutory formula for compensation for canceled leases; the money is to come from a fund designed only to pay court-ordered judgments and settlements of lawsuits, which don’t exist in this case; and includes a provision preventing the deal from being reviewed by a court.
The last of those provisions would have to be authorized by Congress, the letter states, asking for documents and a response from the company by Wednesday. Committee spokespersons weren’t available to say whether they received a response from TotalEnergies, and the company didn’t respond to my request for comment. I received no response from the Department of the Interior.
The California Energy Commission has opened an investigation into the Ocean Winds deal.
“The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation” CEC Chair David Hochschild said. “Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
What’s especially wasteful about Trump’s crusade against wind power is that it’s almost certain to be time-limited.
It’s hardly debatable that renewables such as solar and wind will be our principal sources of energy in the future; holding back the clock achieves nothing but injecting uncertainty into investment decisions that need to be made now, at a time when the price of oil is on the upswing thanks to Trump’s Iran adventure and Europe and China are racing to transition away from fossil fuels, while the U.S. remains becalmed by ideology.
“In the long run, fossil fuels will be used for petrochemicals and not for burning,” Cohen told me. “Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.”
Business
Judge denies move to dismiss State Farm collusion lawsuit
A Los Angeles judge has denied a petition by State Farm and other insurers to dismiss two lawsuits accusing them of colluding to drive homeowners onto California’s FAIR Plan.
The lawsuits, which accuse the insurers of violating the state’s antirust and unfair competition laws, were largely upheld in a decision Thursday by Los Angeles County Superior Court Judge Samantha Jessner.
The judge struck two less significant claims from the lawsuits filed last year, but allowed the case to proceed against more than a dozen major California insurers, led by State Farm General, the state’s largest.
“This is very good news for our people, our plaintiffs, because we’re going to be able to go ahead now with our antitrust claims in both cases,” said Bob Ruyak, an attorney representing the homeowners.
Sevag Sarkissian, a State Farm spokesperson, said the ruling did not “address the accuracy of the allegations” and that the company looks “forward to presenting our case in court.”
The lawsuits allege the companies financially benefited when policyholders were dropped and moved onto the FAIR Plan, since they financially back the insurer that sells more expensive policies which offer less coverage.
One lawsuit led by Todd and Kimberley Ferrier — whose Pacific Palisades home burned down — seeks to compensate 60 homeowners who experienced fire losses exacerbated by the FAIR Plan’s limited coverage.
The other case is a proposed class action that would compensate policyholders for the higher premiums they paid to the plan.
The case has garnered the attention of the federal Department of Justice, which filed a brief this month disputing an argument made by the insurers to have the case thrown out.
The insurers had alleged that they were shielded from antitrust liability under both California and federal law due to a certain legal doctrine.
While the department took no position on the merits of the collusion allegations, it said it files such briefs “where doing so helps protect competition and consumers, including by encouraging the sound development of the antitrust laws.”
The decision by the department to insert itself in the case followed a March post by President Trump bashing State Farm on social media after a visit to Pacific Palisades by administration officials.
The president called State Farm’s treatment of January 2025 wildfire victims “absolutely horrible” and asked EPA Administrator Lee Zeldin for a list of insurers who “acted swiftly” and those that were “particularly bad.”
Also this month, the California Department of Insurance filed an administrative action against State Farm seeking possible suspension of the carrier’s insurance license, alleging State Farm mishandled January 2025 wildfire claims.
The company acknowledges some claims were mishandled but rejected claims it engaged in a “general practice of mishandling or intentionally underpaying wildfire claims.”
The company says the California’s homeowners insurance market is the most “dysfunctional” in the country, with state regulators contributing to “delays and uncertainty that have contributed to fewer choices and higher costs for consumers.”
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