School Board Votes Funds for Escrow on Ambassador
The Los Angeles school board has voted 7 to 0 to deposit $50 million in an escrow account to begin legal proceedings to acquire the Ambassador Hotel site in the Wilshire District from millionaire developer Donald Trump.
The money will be borrowed from the district’s workers’ compensation insurance fund, and replaced when the district receives the $62 million it plans to borrow to fund the purchase of the land and demolition of the hotel to build a high school.
The state agency that funds school construction has agreed to give the district $50 million for the site. That money will not be available until year’s end, and district officials contend it is cheaper for the district to borrow the money to open escrow now, thus freezing the price of the hotel and land. The $50-million state allocation will be used to help repay the district’s $62-million loan.
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