Leaked Letter to Mayor Butts: Hollywood Park Rejects ITC Project, Casting Doubt On Project’s Future

Inglewood Today has obtained a leaked document sent to Mayor James Butts by Otto Maly of the Kroenke Group, speaking on behalf of major Hollywood Park businesses. In a 2-page letter, Maly respectfully rejects supporting the Inglewood Transit Connector (ITC) project, citing several reasons for their decision, with unnecessary traffic congestion being their greatest concern. Maly also notes that Hollywood Park “remains” of this view, suggesting they may have never fully supported the project—despite being among its primary beneficiaries. This raises significant questions about the viability of the $2 billion project if the entities that the project aims to serve are hesitant to support it. This declaration delivers a critical blow to the momentum of the ITC project and raises serious questions about its future.

Maly continues in the letter by highlighting the success of the City’s shuttle program, operated by LAZ Parking, which helps thousands of riders each week navigate to and from SoFi Stadium. He also points out that Hollywood Park donated 4 acres of land to the City, a gesture that he describes as lucrative for the City. Building on this, Maly suggests revisiting the development of the “so-called Civic site” with a transit hub, further revealing that alternative solutions to the ITC have potentially been in discussions for quite some time.

Members of the community have echoed similar concerns since conversations began, suggesting that the ITC is attempting to solve a problem that shuttles can or may already address. At an ITC Open House in March 2023, one resident asked why shuttles couldn’t be used to transport patrons from the Metro K Line to SoFi Stadium. The resident proposed that the City could still develop the Florence and Market Street lot as a transit station, but focus on using it for ride-sharing and shuttle services into the district. “This would still create jobs and generate revenue for the City over time based on the partnerships we put in place. We just have to be creative, and that takes more than a handful of people thinking about this.”

This underscores the broader argument against the ITC project. While Maly suggests that shuttles are an effective way to manage traffic capacity, the ITC would actually require the loss of one lane on Prairie Avenue, potentially worsening traffic congestion. This is a critical concern not just for Hollywood Park, but also for local businesses along the construction route and the community at large.

While traffic congestion is a major concern, the fact remains that even after the ITC is built, it will cost $32 million annually to maintain. The pressing question is: where will those funds come from? Maly reinforces this point in his letter, stating, “Given the more than $5 billion spent on SoFi Stadium, YouTube Theater, the NFL office, and 314 residential units… Hollywood Park has made game-changing investments in the City of Inglewood.” He concludes firmly, “We are not prepared to take any financial responsibility for long-term operations or maintenance of the ITC, nor do we believe fans not utilizing the ITC should be subject to additional fees to cover these costs.”

This statement echoes the concerns of residents, who are also asking where the funds for the ITC’s upkeep will come from. At Tuesday’s City Council meeting, District 1 Councilwoman Gloria Gray addressed the need for greater transparency regarding the $32 million in maintenance costs and questioned who will bear this financial burden. She argued that many members of the public remain unaware of this fact and posed the question, “Is this the correct project to mitigate the traffic? It should be a full discussion, where the community has input.”

While the leaked letter from Hollywood Park provides insight from the project’s primary beneficiaries, it’s important to remember that the ITC has faced pushback and legitimate critique from the public since its inception. Hollywood Park is undeniably a valuable and welcomed asset to the Inglewood community, and its financial interests are an important aspect of the project’s critique, but they must not overshadow the equally, if not more valid, concerns of the local community.

In addition, there is growing unease among local business owners, particularly along Market Street, who fear that the ITC’s relocation plans could jeopardize their financial stability. They worry that construction will drive away regular patrons who may avoid the area to escape traffic inconveniences.

As we contemplate the future of this project, it’s clear that this revelation of non-support from Hollywood Park casts further doubt on the ITC’s viability. However, the community’s continued involvement in this discourse is a strong signal that Inglewood residents and small business owners are paying close attention. Engaging in healthy dialogue about how the City conducts business is a necessary part of navigating the incredible transformation Inglewood is undergoing. But in light of this new information, the ITC may stand as one of Mayor Butts’ and the City Council’s first project failures in an otherwise unprecedented major development run.