Bond Companies, helmer of the large mixed-use Blossom Plaza planned for parcels around Chinatown’s Gold Line station, is getting a slap on the wrist after a redevelopment commissioner stated the developer mislead the agency regarding the profit potential of the publicly-subsidized development.

In January 2007, Community Redevelopment Agency officials agreed to fund portions of the project due to its low-income housing component and the belief the project would not happen at all without financial assistance.

According to an article in today’s Los Angeles Times, a previous return estimate of 11% on the investment has been hyped to 42.3% in a recent sales booklet presented by Bond.

Over an argument of ethics, greed and financial discourse, the CRA voted to consider limiting the size of its subsidy if Bond’s profit base extends beyond 10% — possibly another hurdle in the road to realization for such a pivotal Chinatown infill project.

Blossom Plaza plans calls for 262 residential apartments above 40,259 square-feet of commercial space, with 344 parking spaces and a 17,743 square-foot cultural plaza.

-L.A. board moves to limit public subsidy for Chinatown project (LA Times)
-blossom plaza: demolition of little joe’s to begin?
-notice of public hearing / chinatown blossom plaza