"Downtown LA is on a roll," says Carol Schatz, the president and CEO of Central City Association. She calls the area the "last big urban frontier in the US," but cautions that it is still a hostile environment. Chiefamong her concerns is the lack of "real political will" needed to reinvent the sector into a true 24/7 city.

The elements for renewal are in place, she adds optimistically. The private sector has paved the way with over $50 million in a business improvement district program that improved the neighborhood. But a thriving downtown will not succeed, she went on to say, without converting old office properties to residential use. She expects 84,000 housing and mixed-use environments to be created by 2004.

Tom Gilmore, president, Gilmore Associates, agrees that finally there's a "good buzz" about downtown. He sees the downtown as a niche real estate area with great potential for residential growth that his company is ready to exploit. The turnaround is only just beginning, and Gilmore sees the effort as long term. A positive sign is that in this time of recession the "numbers for downtown are going up."