City of Beverly Hills paves way to $550M in bonds for Cain project

"Cain International and OKO Group got the green light from the Beverly Hills City Council in the wee hours of Wednesday morning to designate a Community Facilities District that could allow One Beverly Hills to receive up to $550 million twice the city's annual operating budget in bond financing. The council would still have to approve future bond issuance within the specific area, which the developers of the mixed-use project expect to seek closer to the project's 2028 completion. It's a good deal for One Beverly Hills, Vice Mayor John A. Mirisch, who voted against the project in 2021, said at the meeting, which started at 7 p.m. on Tuesday. He added, Now I do feel very comfortable that this is a good deal for the city."

"Of the $550 million, $390 million would be used to fund public improvements and $160 million would be allocated for future city council to fund major repairs or enhancements to the public improvements decade from now without needing to revisit voter approvals, according to a council staff presentation at the meeting. The special taxes would be levied on properties within the 17.5-acre project site at 9850, 9876, 9900 and 9988 Wilshire Boulevard between Wilshire Boulevard and Santa Monica Boulevard, slated to include an Aman resort, two condominium towers and the renovation of the neighboring Beverly Hilton hotel. The revenue would then be used to repay the bonds."

"The CFDs really act like takeout financing, Larry Green, managing director at Cain, said at the meeting. It is not a gift or a subsidy. There is no financial risk to the city, and there is no impact to the existing taxpayers outside of the CFD."

A Community Facilities District designation was approved to allow One Beverly Hills to access up to $550 million in bond financing, with future bond issuance requiring separate council approval nearer the project's expected 2028 completion. The funding plan allocates $390 million for public improvements and $160 million reserved for major repairs or enhancements a decade later without returning to voters. Special taxes will be levied on properties within the 17.5-acre project site on Wilshire Boulevard and will be used to repay the bonds. The development includes an Aman resort, two condominium towers, renovation of the Beverly Hilton, and designated open space. Project representatives report 177 Aman-branded residences, with 20 under contract.

Read at therealdeal.com