My weekly business chat with KPCC's Steve Julian looks at the fading prospects for the Grand Avenue project and several local businesses that were highly ranked on the Inc. 500 list of fastest growing private companies. Available at KPCC.org and podcast (Business Update with Mark Lacter). Transcript is after jump.

Steve Julian: On Tuesdays we talk about the latest business stories with Mark Lacter. Mark, those grand plans along LA's Grand Avenue... will we ever see them?

Mark Lacter: I wouldn't bet on it Steve. This was going to be the Frank Gehry-designed $3-billion hotel/condo/retail complex - it would have been the centerpiece of the Grand Avenue makeover. But the developer now wants yet another delay before breaking ground, this time from early 2011 to early 2013 - and that's coming on top of several earlier delays. This is like the girl you keep asking out on a date and who keeps canceling out - at some point it becomes pretty clear that she just doesn't want to go out with you. And with Grand Avenue it's becoming clear that what was originally planned just isn't going to happen. The basic explanation is that financing can't be arranged - you know, the project was finalized in early 2007, just as the economy had started to tank.

Julian: What about the Eli Broad contemporary art museum that, only last week, was approved via a land lease?

Lacter: The Broad museum might encourage new investors, but I'm not sure whether these monster complexes really pencil out anymore. And it's not just Grand Avenue - last year the conglomerate that owns Korean Air announced plans for a $1-billion hotel/office/retail complex that would replace the Wilshire Grand Hotel - that's just a few blocks from where the Grand Avenue project was supposed to have gone up. Now comes word that the developers want the same sort of tax breaks that were given to developers of the Convention Center hotel at LA Live. That would be a subsidy of many millions of dollars.

Julian: Is there a message here?

Lacter: Well, the first message is that city officials shouldn't consider any more giveaways, not with the current budget problems being faced. The other message is that downtown L.A. doesn't need another office or hotel tower, but more supermarkets and drug stores and big box stores - basic amenities that remain lacking. Not very sexy, but definitely the way to go.

Julian: Has the economy tripped up all the local companies?

Lacter: It's easy to think that way, but economies can have success stories even when times are tough - and you see that in a list of the 500 fastest growing private companies that was prepared by Inc. magazine. I pulled out two dozen or so that are located in L.A. and Orange counties - they're generally quite small (annual revenue of under $20 million), and the names won't sound familiar. But their revenue growth between 2006 and 2009 is really quite astounding (remember that from 2007 on things haven't been so wonderful).

Julian: Who's on top?

Lacter: The top local company is Lead Research Group - it was tied for 23rd, it's based in Huntington Beach and it does marketing and advertising. In 2006, its revenue was a little over $100,000; in 2009 it was $7.7 million. That's revenue growth of almost 7,200 percent. Now, companies usually grow the fastest when they're just starting out, so I wouldn't expect to see that 7,200 percent increase from here on out. But it's still pretty impressive. Next highest on the local list is a company in Valencia called Backjoy Orthotics - it sells a device that's supposed to eliminate back pain. And there are a bunch of others.

Julian: As you look down the list, can you tell who's doing well by type? By product or service?

Lacter: Absolutely. I notice that marketing and advertising firms - especially online marketing and advertising firms - are among the hottest areas. Of course just because you made it onto the Inc. 500 doesn't mean that you're on there for good - last year's number one company was liquidated by state regulators in Florida after they found all sorts of financial irregularities. So I guess sometimes those terrific growth numbers are indeed too good to be true.

Julian: Thanks Mark

Lacter: Thanks Steve

Julian: Mark Lacter is a contributing writer for Los Angeles Magazine and writes business blogs at LA Observed.com and at kpcc.org.