Even as California cities rush to restrain the spread of "telco hotels," investors can't get enough of them.
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
FULL STORY: Telco Hotels Lure Investors, Worry Cities

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Planning for Universal Design
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UCLA Lewis Center for Regional Policy Studies
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