October 11, 2007

NBC LEAVING BEAUTIFUL DOWNTOWN BURBANK; 'O'BRIEN'S 'TONIGHT SHOW' TO BE HOUSED ON UNIVERSAL LOT (LAT, THR, LABJ, DHD)

By Nancy Vialatte

NBC Universal is expected to announce today that it will sell much of the 34 acres it owns in Burbank, including NBC Studios. Home to such iconic programs as �The Tonight Show,� �Hollywood Squares� and �Laugh-In,� the studios will move to a new �green� facility in Universal City, right across from Universal Studios. Meanwhile, �The Tonight Show� will remain in LA when Conan O�Brien takes over in 2009. Its latest incarnation will be housed in Studio One, a soundstage on the Universal Studios lot that was built in 1961 for "The Jack Benny Program."

� 'The Tonight Show' put us on the map" said Burbank Mayor Marsha Ramos. "Without that line from Johnny Carson, about 'beautiful downtown Burbank,' most people wouldn't even know that we exist. When 'The Tonight Show' leaves, there will be a portion of our heart that will be empty," reports the Los Angeles Times.

"Everybody likes to have visible shows like 'The Tonight Show With Jay Leno.' They are a big part of who we are," said Mary J. Alvord, Burbank's city manager. "Jay has been more than a host - he's been an accessible member of our community. It's a sad day for Burbank."

The new "green" facility will boast a high-definition news headquarters and is scheduled to house NBC News' West Coast operations and the local news staffs of KNBC and Spanish-language Telemundo KVEA-TV Channel 52. "Access Hollywood" would also be located there.

The new center is set to be up and running in 2011 and will be modeled after the NBC News World Headquarters at 30 Rockefeller Plaza in New York City, which is being unveiled Thursday and opens later this month, said the Hollywood Reporter.

The project is not NBC Universal's only ambitious expansion at Universal Studios. It is separately seeking approval for a $3-billion development plan for Universal City that would add 2,900 homes to the area, as well as new production facilities and retail space. The project, which must get county and city approval, could take several years to get off the ground. (LAT)

Tom Smith, senior vice president of West Coast real estate for NBC Universal, noted that the company's development deal with Burbank required NBC to sell the parcel to a buyer who planned media-related uses for the property, a provision that could help guarantee the creation of high-paying jobs. (LAT)

The Los Angeles Business Journal, which reported the news yesterday, said the Burbank studios would likely have a variety of takers. �The Burbank Media District in which the property is located is a red-hot office submarket. NBC Studios could opt to lease out the space�NBC Studios also could also be sold � and likely for a pretty penny. There have been significant studio sales this year that could serve as benchmarks for the possible sale of the television studio. Private equity firm Carlyle Group paid $150 million for Manhattan Beach Studios in a deal that closed in mid-June." In July, the LABJ reported that local real estate firm Hudson Capital LLC had agreed to pay about $205 million for Sunset Gower Studios.�

Before any deal is complete, however, the company wants assurances that it can lease back the site, purchased in 1951, for its news operations until the new facility in Universal City is complete. It is also considering retaining some of the studio space that it now leases to other productions, including "Days of Our Lives" and "The Ellen DeGeneres Show."