Telco Hotels Worry Cities

Even as California cities rush to restrain the spread of "telco hotels," investors can't get enough of them.

Read Time: 1 minute

August 17, 2000, 8:00 AM PDT

By Chris Steins @urbaninsight


Sacramento is the latest city to try to rein in the spread of telco hotels. Officials there are drafting an emergency ordinance that would require developers of telecommunications projects to seek a special permit from the planning director before moving into downtown. The ordinance aims to regulate the design and location of telco hotels -- similar to a proposal Los Angeles is studying. Wall Street and private investment firms have already committed more than $1 billion to develop buildings in California devoted to telecommunications facilities. City officials fear that thre projects -- which require few employees -- will hinder efforts stimulate growth in downtowns.

Thanks to Chris Steins

Wednesday, August 16, 2000 in Wall St. Journal

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