Predatory Development: Crossroads Hollywood

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New development is necessary. In order for a city to grow, in order for its economy to stay healthy, it’s important to have new construction to bring investment to communities and adapt to the city’s changing needs. But new development isn’t always a good thing. New projects bring new impacts, and the larger the project the more important it is to consider carefully how it will affect the surrounding community. Most large projects are a mixed bag. Pro-business groups will inevitably argue that they bring tax revenue and jobs, and both of these are important. But large projects can also have serious negative impacts, and we need to weigh those, too. Often it’s a matter of trying to figure out if the good will outweigh the bad, and in many cases it’s hard to say for sure.

On the other hand, in some cases it’s pretty easy to make the call. Crossroads Hollywood is a clear example of predatory development. While the backers of the project tout its benefits in terms of tax revenue, jobs and economic activity, they completely ignore the downside. And the downside is considerable.

First, let’s take a look at what this whole thing entails.

Crossroads Hollywood includes about 1,381,000 square feet of floor area, consisting of 950 residential units (of which 105 are for Very Low Income Households), 308 hotel rooms, and approximately 190,000 square feet of commercial space. The project does include the preservation and rehabilitation of the historic Crossroads of the World mall and the Hollywood Reporter building. All other buildings on the project site would be demolished, including 84 Rent Stabilized apartments. The developers are also asking for a Master Conditional Use Permit to allow the sale of a full line of alcoholic beverages at a total of 22 establishments, and another Master CUP to allow eight uses with public dancing and live entertainment.

I’ve gotta say, it’s pretty ambitious. The investors behind Crossroads, Harridge Development Group, are thinking big. They’re also thinking only of themselves and the massive profits they’ll reap from this project. They don’t really give a damn about the community. If approved, Crossroads Hollywood will be devastating for the environment, devastating for housing, and devastating to the health and well-being of the Hollywood community.

Let’s take a look at the project’s environmental impacts….

These days any developer is going to tell you their project is good for the planet. They learned long ago they need to play that angle to sell it to the public. But Harridge’s claims about Crossroads being environmentally friendly are mostly just hype.

The State of California has designated Crossroads Hollywood an Environmental Leadership Development Project. (ELDP). In order to qualify, the developer has to show that it won’t result in any net additional emissions of greenhouse gases (GHGs). But a project on the scale of Crossroads represents a huge increase in square footage, so it’s to be expected that there will be a huge increase in energy use. The report by the California Air Resources Board (ARB) estimates the Crossroads project will produce 9,440 MTCO2e (Metric Tons of Carbon Dioxide Equivalent) during demolition and construction, and then 14,294 MTCO2e during the first year of operation, though they say that number will decline each year over the life of the project. This is a huge increase in emissions. So how can the State say it achieves a net reduction?

Simple. The developer buys carbon credits. Like many other states, California has an exchange where businesses that aren’t producing their maximum allowed CO2 emissions can sell what they don’t produce as “credits”. Other businesses that want to offset their own emissions can buy the credits to satisfy regulators. So while Crossroads Hollywood will be putting tens of thousands of tons of additional GHGs into the atmosphere, the State says that buying credits actually makes the project carbon neutral. There are people who have reservations about the carbon credit system, but it’s become widely accepted as a tool for reducing global warming, so let’s go along with the idea that this does represent a net reduction in CO2 emissions.

The problem is that this project isn’t just producing massive amounts of CO2. It’s also spewing out tons of ozone, nitrogen dioxide, and particulate matter. This is bad news for the people who live in the area. The South Coast Air Quality Management District (SCAQMD) has evaluated cancer risk from air pollution in its Multiple Air Toxics Exposure Study IV (MATES IV). You can see by the map below that Hollywood is near the top of the scale.

Crossroads Air Quality MATES IV from EIR

But it gets worse. After going through pages of boiler plate language about localized significance thresholds and standard methodologies, the Crossroads Environmental Impact Report (EIR) gets around to analyzing impacts during the construction phase of the project. After listing nearby sensitive uses, including Selma Elementary School/Larchmont Charter School (same campus), Hollywood High, and Blessed Sacrament School, and acknowledging that young people are at higher risk of chronic lung disease from air pollution, the EIR claims, “…, localized construction emissions resulting from the Project would result in a less-than-significant air quality impact.”

Give me a break. Four years of construction, including demolition and excavation, thousands of diesel truck trips and extensive use of heavy machinery will have “less-than-significant” impacts on the kids at these schools? And it’s also important to point out there have been projects under construction on Selma for years now, many of them within three blocks of Selma Elementary. These kids have been inhaling construction dust and diesel fumes since 2015, and the folks behind Crossroads want to keep that going til 2021. But don’t worry. It won’t harm the students a bit.

So let’s talk about transportation. I will give the authors of the EIR credit. Usually traffic assessments for projects like these are ridiculously dishonest. In this case, the EIR acknowledges that traffic is already bad in the area, and that the project will make it worse. Here are a few shots of what it looks like at rush hour.

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Northbound traffic on Highland, the western boundary of the project.

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Traffic heading west on Selma toward Highland.

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Traffic heading north on Las Palmas toward Selma.

The EIR does analyze existing weekday rush hour conditions as required by the California Environmental Quality Act (CEQA). The problem here is, Hollywood is a special case. In addition to really awful congestion at rush hour, you can also have heavy traffic at night and on weekends because of the constant parade of concerts, movie premieres, food fairs and other miscellaneous events. There are multiple happenings in Hollywood every month, many of them involving street closures. And don’t even ask what it’s like during the Hollywood Bowl season.

I wouldn’t expect the authors of the EIR to include all this, because they’re not required to. But they should at least talk about additional traffic generated by the eight live entertainment venues that are included in the project. Crossroads Hollywood isn’t just meant to be a place where people live and work. It’s intended to be a destination. While I’m sure some of the spaces offering entertainment will be fairly small, it seems likely that at least one of them will be a dance club offering live DJs. And I wouldn’t be surprised if popular singers and bands start showing up on a regular basis. Which means that a community already overwhelmed with events that draw tons of cars and disrupt transit will have to bear an even heavier load once Crossroads is up and running.

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Apartment building to be demolished if the project is approved.

And what about the impacts that eight places featuring live entertainment will have on the LAPD’s workload? Not to mention the 22 establishments selling alcohol. Incredibly, the EIR doesn’t even discuss these things in the section dealing with police protection. They conclude again that project impacts will be “less-than-significant”. Obviously the authors of the EIR haven’t seen the research indicating that high alcohol outlet density has been linked to higher rates of violent crime.  Back in 2014, LAPD Chief Charlie Beck wrote to the Department of City Planning (DCP) pointing out that the “oversaturation” of alcohol outlets in Hollywood was contributing to increased crime, including robbery, shootings, rape, and assault. The DCP obviously paid no attention, because they’ve gone on granting liquor permits, and violent crime in Hollywood has risen every year since then. LAPD stats for Hollywood as of April 21 show violent crime has gone up 28.9% over the same period last year. The LAPD is understaffed, and doing their best to cope with a difficult situation. Too bad the DCP has no interest in helping them out. Apparently the folks at City Planning have no concern for the safety of Hollywood residents, or for the people who visit the area. And it looks like Harridge shares their total indifference.

This same indifference extends to the project’s noise impacts. Remember, the developer is asking permits for live entertainment in 8 venues. It seems like at least some of these will be outdoors. Check out this table from the EIR that lists the spaces where they plan to have amplified sound.

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It’s hard to say how much overlap there will be, since they don’t distinguish between those spaces intended for live performances and and those that will just have recorded sounds. But it’s pretty clear that there’s going to be a lot of music, and a lot of it will be outdoors. The EIR acknowledges that there could be significant impacts from noise, but don’t worry, they have a plan to take care of that. What’s their plan? They’re going to build a 12-foot wall on the project’s eastern boundary, between Crossroads of the World and Blessed Sacrament Church. And according to the EIR, that fixes everything.

This is so ludicrous it’s hard to believe they expect people to buy it. A single 12-foot wall is going to addres any concerns about noise. Live outdoor performances have been a problem for years in Hollywood. Area residents can tolerate a lot, and nobody gets bent out of shape if someone puts on a show during the day. But in recent years more and more club owners have been pushing the limits at night. There have been a lot of complaints about DJs ripping it up on rooftop bars in the small hours. The EIR’s claim that amplified music will only be heard in the immediate vicinity is bull. People who live in the hills have told me they can hear late night noise from down on the boulevard, and they’re not happy about it.

But Crossroads Hollywood wasn’t meant to benefit the community. It was meant to benefit the investors who are hoping to reap huge profits. This project will put more cars on the road and more poison in the air. It will create more crime than the LAPD can handle and more headaches for residents trying to get a good night’s sleep. And what do we get in return? Yeah, there’s the tax revenue, but the City is already seeing record revenues and still can’t balance its budget. More housing? Yeah, the vast majority of it priced way beyond the reach of most people who live in Hollywood. When we put the 105 Very Low Income units gained against the 84 Rent Stabilized units lost, we see a net increase of 21 units that will be accessible to the low income families that really need housing. The gain of 21 units will quickly be erased by the project’s gentrifying impact. If Crossroads is built, you can expect to see a lot of other investors buying up apartments and kicking people out. And will the project create jobs? Sure, mostly low-paying jobs in bars, restaurants, and hotels. Most of the people who will work there could never afford to live there.

This is predatory development. A project designed by investors for investors. The reason the EIR doesn’t see any serious problems for the community is because the needs of the community were never considered in any meaningful way.

It’s just about money.

Next week the City will be holding a hearing on Crossroads Hollywood. If you want to show up and speak your mind, here’s the info.

Tuesday, May 15, 2018, 9:00 am

Los Angeles City Hall
200 North Spring St., Room 350

ENTER ON MAIN STREET.

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Crossroads of the World

 

Where Is this Bridge Going?

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The old Sixth Street Bridge is gone. It was torn down early in 2016. The demolition was necessary because the concrete in the original structure was decaying. Work has begun on constructing a new Sixth Street Bridge, and right now it looks like it will be finished in 2020. (For the record, the formal project title is the Sixth Street Viaduct Replacement Project.)

Bridges are about making connections. The original structure was built in 1932, and was one of a series of bridges that spans the LA River. This ambitious infrastructure project started in the 20s and continued through the 30s, eventually allowing numerous crossings between Downtown and East LA. Here are a few photos of the old Sixth Street Bridge.

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A shot from the base of the bridge.

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A truck coming down the west side.

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A view of the bridge facing west.

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Downtown in the distance.

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A view of the San Gabriel Mountains from the old bridge.

The renderings of the new bridge are striking. It was designed by architect Michael Maltzan, but the project is a team effort, and the goal is to produce something much more than a bridge. Here’s a quote from Maltzan’s web site.

The design team including Michael Maltzan Architecture (Design Architect), HNTB (Engineer and Executive Architect), Hargreaves Associates (Landscape Architect), and AC Martin (Urban Planning) began with the fundamental understanding that the Viaduct is more than a simple replacement thoroughfare crossing the Los Angeles River. The project instead foresees a multimodal future for the City, one that accommodates cars, incorporates significant new bicycle connections. It also increases connectivity for pedestrians to access the Viaduct, not only at its endpoints, but along the entirety of the span, linking the bridge, the Los Angeles River, and future urban landscapes in a more meaningful relationship.

The project also includes a park and an arts center. You can see some images here.

Sixth Street Viaduct/PARC from LA Bureau of Engineering

Here are some shots of the project site from March 2017, when work on the new bridge was just beginning.

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For the time being, this is where Sixth St. ends.

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Lots of machinery on the project site.

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Looking across the river toward East LA.

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A shot of the riverbed when construction was just starting.

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Another angle.

And here are some shots from August 2017.

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A little more progress has been made.

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A closer view.

For the team involved with the design, this project is all about bringing things together, creating connections and offering new ways for people to experience this space. One of the chief goals is to link the Arts District with Boyle Heights and the LA River. That sounds pretty cool in the abstract, but in actual fact there are a lot of reasons to worry about the downside. I’m sure Maltzan and his team see this project as a positive thing, but that’s not surprising. They’re architects and engineers engaged in creating a spectacular new piece of infrastructure. And of course the City’s website  is all about the upside.  But really, the City’s glib promo materials don’t begin to describe what’s happening here. By itself, the new bridge may sound great, but if you look at it in the larger context of the area’s culture and economy, you start to realize that this project could have serious negative impacts.

Any large scale infrastructure project, any attempt to remake the landscape, is going to affect the surrounding communities. These impacts can be good or bad, and often it’s a mix of the two. In this case, the biggest issue is one that never gets mentioned on the City’s web site. It’s the same issue that communities all over LA are dealing with. Displacement. Downtown LA has been going through a massive construction boom, with high-end housing and high-end retail largely transforming that community into an upscale enclave. Now developers are eyeing neighborhoods on the other side of the river.

The residents of Boyle Heights are already feeling the effects of gentrification, as real estate investors looking for cheap land and big profits have been buying up parcels in the area. Evictions are already happening, and many people who live in this largely Latino community are afraid they’ll be next. You may have read about the protests that have taken place in recent years. Here are some shots from an action staged by East LA residents in September 2016.  Protesters met at the intersection of Whittier and Boyle, where the old bridge touched down on the East Side.

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“Boyle Heights Is Not for Sale.”

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Families are worried about losing their homes.

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Many people on this side of the river see gentrification as violence.

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New art galleries are seen as harbingers of displacement.

The protest movement in Boyle Heights has gotten a fair amount of media attention, partly because in some cases the protesters have used aggressive tactics in trying to shut down a new coffee house and some local galleries. They see these businesses as the first outposts of coming gentrification. There are people who have questioned the protesters’ methods, complaining that they’ve gone too far. But let me ask you this. If you were in danger of losing your home and being driven out of your neighborhood, how far do you think you’d be willing to go?

It’s no accident that communities like Boyle Heights have been targeted by real estate investors. Land is cheaper there than in Downtown, and they know that the completion of the bridge and the accompanying amenities will make the area more desirable to upscale residents. We’ve already seen something similar happen in the Arts District. A largely low-income community has been rapidly transformed by a massive influx of developer dollars, and the people who had lived there for years, in fact, the people who actually built the community, have been driven out.  A similar scenario has been unfolding in Hollywood, and with the construction of the Crenshaw/LAX line you can see the same thing happening in communities like Leimert Park.

Investment in a community can be a good thing, but not when it drives out the people who have spent their lives there. And these days it’s not a gradual evolution. City Hall works with developers to target areas for rapid growth, almost all of it geared toward affluent new residents. When the City or County lays plans for new infrastructure, like light rail or parks or, in this case, a bridge, real estate investors move in quickly.  Often these investors are well connected at City Hall and already have possible projects in mind.  In other cases they’re speculators just snapping up parcels that they know will rise in value. They don’t plan to build anything, since they know they can make a profit just by sitting on the property until new infrastructure is in place.  And Mayor Garcetti gleefully promotes the aggressive transformation of these communities, apparently without giving a thought to the real suffering that displacement is causing for thousands of Angelenos. It seems he feels he was elected just to serve the affluent.

These days I hear so much talk about making LA a “world class city”, and I’m really sick of it. Garcetti’s idea of creating a “world class city” is about pouring billions into new infrastructure so that developers can cash in by building upscale enclaves for the affluent. Personally, I don’t care what class LA is in. If we can’t help hardworking people stay in their homes, if we can’t support communities that people have invested their lives in building, then this city is a failure.

You can spend all the money you want on bridges and parks and rivers and rail lines. All that stuff is meaningless if at the same time we’re dismantling our communities, the human infrastructure that really holds this city together.

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West Hollywood Is Taking Action. Why Can’t LA?

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Level Furnished Living in Downtown LA

A friend just sent me an article from Wehoville. Last year the City of West Hollywood issued a ruling that Korman Communities, operator of the AKA extended-stay hotel, was breaking the law by offering units as short-term rentals. There are actually 190 units in the complex, which was originally approved by the City as residential condominiums. When the site was purchased by Korman, they announced that the units would instead be offered for extended-stays. This is key, because this use is allowed, since guests would be residing there for more than 30 days.

But after doing some research, Interim Director of Planning John Keho concluded that the 110 units in the west tower were actually being offered as hotel rooms. He found evidence on-line that AKA was promoting the building as a hotel and decided the City had to put a stop to it. Korman is appealing the decision, and there will be a hearing this week.

The reason I’m bringing this is up is that there’s a similar situation at Level Furnished Living (LFL) in Downtown LA, and City Hall has done absolutely nothing about it. The project was approved back in 2013 as 303 residential condominiums and 7 commercial condominiums. But when it actually opened, the units were being offered not as condos but for extended stays. Again, this is legal, because the guests are staying for longer than 30 days. But last year the LA Weekly reported that the units were being offered for short-term stays. In other words, they’d become hotel rooms. This is not legal.

And what has the City of LA done about it? Absolutely nothing. The owners of the building claimed they were working with the Department of City Planning (DCP) to get a transient occupancy permit. This may be true, but the DCP hasn’t approved anything yet, and the building is still operating as a hotel. In other words, while the folks at City Hall are telling us we have a housing crisis every chance they get, they’re allowing the owners of LFL to turn over 300 residential units into hotel rooms.

So what does the City have to say for itself? I was at a meeting last month where a guy from the City Attorney’s office spoke. He first told us that they just didn’t have the staff to go after illegal short-term rentals (STRs). He went on to say these cases were really difficult because the City had to send inspectors out to the site to actually see that there were guests who were staying there illegally. This was tricky, because inspectors worked during the day, and tourists were usually only in their rooms at night. So, according to him, the City’s hands were tied.

What rubbish.

How hard is it to find evidence that LFL is offering units as hotel rooms? I just went to Hotels.com and did a search. It came up right away. I punched in some dates and found I could stay there for as little as one day.

LFL from Hotels Book One Night 180313 CROPPED

But is that really evidence? Even if they’re posting on Hotels.com, maybe no one has ever actually booked a room as a short-term guest. So I went to Yelp! next, and found these reviews….

“My family decided to travel back to LA over Thanksgiving. Since we are a family of four with two little kids we didn’t want to inconvenience anyone by staying in their home. That being said, since we had kids we needed to also have a kitchen and ample living space for our brief stay, enter Level Furnished Living.”

“I ended up staying at Level after a nearby hotel messed up my reservations multiple times and could not host me. The staff at Level were so accommodating and wonderful! We were given an early check in time and they answered all questions we had.”

“Last weekend I traveled to LA for a fun filled weekend of football. On Saturday I watched a great game between the Texas Longhorns and USC. The next day I saw one of thenew LA teams the Chargers play my home team the Miami Dolphins. Now even though those experiences were great, I had to give kudos to the place were I stayed. Which wasLevel Furnished Living!”

People do really seem to love the place. And I should point out that some guests who posted reviews had stayed for months. But it’s clear from these postings that LFL is offering units as hotel rooms.

So why hasn’t the City taken action? Back in 2016, when short-term rentals were becoming big news, City Attorney Mike Feuer held a press conference and announced that he was going after four apartment owners who had illegally turned units into STRs. But we’re coming up on two years since that press conference, and last time I checked none of those cases had been resolved. Feuer is good at putting on a show for the media. Not so good when it comes to cracking down on wealthy developers.

And would Feuer even have to file a suit against LFL? No. The City could start by simply sending a letter to the owners saying that the City had evidence that the building is operating as a hotel, and telling them to either shape up or face the consequences. If they failed to comply, then the City could open an investigation. I don’t care how short staffed they are. This isn’t a duplex where the landlord is making some extra cash on the sly. This is a tower with over 300 units in the heart of Downtown. It was approved as residential housing. The DCP keeps approving new luxury towers in Downtown, insisting that the area needs more housing. Why isn’t it cracking down on people who are illegally taking housing off the market?

Actually, the answer is simple. City Attorney Mike Feuer, Councilmember Jose Huizar and Mayor Eric Garcetti really have no interest in providing housing for the people of LA. They also have no interest in prosecuting wealthy deveopers, no matter how many laws the developers break. They’ll give you a lot of excuses, but in reality they just don’t give a damn.

Bottom line, the City of West Hollywood is taking action. The City of Los Angeles is not.

If you want to read about city officials who actually feel it’s their responsibility to serve the public, here’s the story from Wehoville.

AKA Appeals City Decision that Its Short-Term Luxury Rentals Are Illegal

I Remember When Artists Used to Live There

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800 Traction

Back in November I posted about a protest by Downtown artists facing eviction. I’d been wanting to follow-up, so earlier this month I went to a gathering at 800 Traction to check in with the folks there. Unfortunately, there’s not a lot to report. The artists who’ve been living and working in this building for years, in some cases for decades, still don’t know what the future holds for them. They’ve hired a lawyer, and negotiations with the developer are currently underway. No one had any current news about The Artists’ Loft Museum Los Angeles (ALMLA), which is a short walk away, at 454 Seaton. This is another group of creative people who have called the area home for years. They were served with eviction papers in 2017, and have been wrangling with lawyers since then.

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454 Seaton

But I wanted to write a post anyway, if only to keep this situation in peoples’ minds. As gentrification continues to spread across LA, the pace of evictions is accelerating. Evictions from apartments covered by the Rent Stabilization Ordinance (RSO) have been increasing for years, with 1,824 units taken off the market in 2017 alone. Over 23,000 RSO units have been lost since 2001. But this only tells part of the story, since there’s no mechanism in place to track the number of tenants who are forced out of non-RSO units. It’s commonplace these days for people living in a building not covered by rent control to find that the landlord has suddenly hit them with an exorbitant increase. If they can’t pay, they have to leave, and no one has been keeping track of how often that’s happened in recent years. If you’re not covered by the RSO, you have no protection. Unfortunately, that’s the case for the artists at 800 Traction.

So many people have highlighted the irony of an Arts District that’s forcing artists out, it seems redundant to bring it up again. The folks at City Hall certainly don’t care. They’ve been actively assisting real estate investors in a massive overhaul of the area. The change in the neighborhood’s vibe is both striking and depressing. Even going back just 10 years, I can remember aging warehouse spaces filled with struggling artists who didn’t have much money, but who had still managed to create a lively community. Most of those people are gone now. And where there used to be cheap dive bars and funky little stores, now the streets are being taken over by clothing shops and chain restaurants. More and more these days the neighborhood seems like a giant outdoor shopping mall.

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The people at City Hall keep talking about how they want to create vibrant communities, and insist that the onslaught of high-priced apartments and upscale retail is helping to achieve that goal Downtown. In reality, what they’re doing is creating enclaves for the affluent that automatically exclude anyone making less than $70,000 a year.

If these artists are eventually forced out of their homes, it’ll be one more win for the developers. And a huge loss for LA.

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Westlake Residents Speak Out Against “Design District”

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Attendees at a community forum on the North Westlake Design District.

It’s clear that the people at City Hall think they know better than we do how our communities should grow. The latest example of their arrogance is the proposed North Westlake Design District (NWDD). It’s another attempt to put money in developers’ pockets by pushing for gentrification and displacement in low-income communities. Check out the language from the notice announcing a hearing held by the Department of City Planning (DCP) back in 2014.

“The proposed Design District is being considered to guide new development that will complement the existing character of the neighborhood, create a pedestrian friendly environment, and provide neighborhood-serving amenities. The proposed zoning ordinance is initiated by the City of Los Angeles.”

Pay attention to that last sentence, because it’s the key to what’s happening here. This “design district” is not something that the community asked for. It’s something City Hall wants. Are any of the area’s residents in favor? Local activists organized a community forum in January. I was there for about an hour, and I only heard one speaker who thought this was a good idea. Everybody else who spoke while I was there was against it. Why? Well, there were a lot of reasons, but it boils down to the fact that a lot of them are worried they’re going to get kicked out of their own community.

Why are they afraid that’s going to happen?

Because that’s what’s been happening in communities all over LA for well over a decade. As real estate investment interests have moved into places like Echo Park, Highland Park, Boyle Heights and Hollywood, low-income residents have been forced out by rising rental prices. Even units protected by the Rent Stabilization Ordinance (RSO) aren’t safe. In 2017 landlords took 1,824 RSO units off the market using the Ellis Act. Over 23,000 RSO units have been lost since 2001. So the residents of the Westlake area, including Historic Filipinotown, have good reason to be worried.

Real estate investors are already buying up property in the area. The City Planning Commission recently approved The Lake, a huge mixed-use project that includes a hotel and a 41 story residential tower, at Wilshire and Bonnie Brae. Other projects in the works are a 54-unit building at 1246 Court and a 243-unit mixed-use complex at 1800 Beverly. As investors move in, you can bet a lot of locals will be forced out.

The impacts are already being felt in the community. One of the speakers talked about how the office building he works in was recently purchased by a new owner, and the non-profit the speaker works for has already received an eviction notice. Another speaker complained that a project containing over 200 condos at Temple and Hoover will take away what little open space the neighborhood has.

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City planning staff responds to community concerns.

There were a lot of unhappy people at the forum. Speaker after speaker came forward to talk about their concerns, and some weren’t shy about expressing their anger. Three representatives from the DCP attended, and they did their best to defend the design district. Personally I didn’t think their arguments were persuasive, but at least they showed up. The organizers of the forum invited Councilmember Mitch O’Farrell to come and hear what the community had to say, but he was a no-show. Didn’t even send a rep from his office. I guess that shows just how much he cares about the folks who live in the area.

We’ve seen this all before. The City pushes a plan that will create a “pedestrian friendly environment” and bring “neighborhood-serving amenities”. They talk about “walkable”, “vibrant” urban spaces, where people can shop, dine, drink and party. The only problem is, once the City’s done with its makeover of these areas, the people who get to enjoy them are the affluent newcomers who’ve taken the place over. Families who used to call the neighborhood home have to leave. They can’t afford to live there any more.

In response to the NWDD, a group called The Coalition to Defend Westlake has been formed. To view their Facebook page, click on the link below.

Coalition to Defend Westlake

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People wait in line to have their say about the NWDD.

To Have and Have Not

Bilt Where Will

I was so bummed. I desperately wanted to go to UCLA’s 32nd Annual Land Use Law & Planning Conference. Unfortunately, the $535 registration fee was a little too pricey for me. But just the thrill of being close to all the movers and shakers who were attending the conference drew me to Downtown. Even though I couldn’t afford to go in I just stood on the sidewalk across from the Biltmore, gazing up at the windows where I knew the attendees were debating lots of heavy issues.

Bilt Angle

The conference brochure definitely made it sound cool. They had a bunch of high-powered attorneys and consultants on hand to talk about CEQA reform, the housing crisis, infrastructure and other important stuff. And beyond all those big, heavy issues, they even found time for a session entitled Community, Health, and Planning for Environmental Justice. I mean, okay, they kind of jammed that into a half hour slot along with about half a dozen other topics, but I’m sure they covered everything they needed to.

Unfortunately, my reverie was interrupted by a bunch of noisy protesters who were standing nearby, holding signs and chanting slogans. What were they complaining about? Well, they were angry because one of the speakers was Sacramento superstar Scott Wiener, the Senator from San Francisco. The protesters had a problem with a bill the Senator just introduced, SB 827, which takes zoning authority away from cities. Wiener says if we override local zoning to allow developers to build housing up to eight stories along transit corridors, we can solve both our housing problems and fight climate change. Doesn’t that sound great? According to Wiener, his bill will let developers build tons of new units so housing prices will definitely go down. And because the new units are close to transit, everybody will dump their car and jump on the train.

I wonder if anybody at the conference asked Wiener about a recent report from UCLA that shows transit ridership is way down in Southern California, even though local officials have been approving pretty much any crazy project developers propose as long as it’s near transit. If so, I really would’ve liked to hear his response. I’m sure Wiener had a ready answer for the cynics who point out that in New York housing is still outrageously expensive even though the city has been building tens of thousands of new units every year. And so what if cities like Vancouver and Toronto have thousands of units sitting empty while middle-income and low-income families struggle to pay the rent? Foreign investors need homes, too, although, okay, maybe they don’t always really need them.

Bilt Speaker

At lunch all the power players adjourned to the Gold Room, where they heard the keynote address from Richard Rothstein, author of The Color of Law: A Forgotten History of How Our Government Segregated America. Rothstein apparently talked about how federal, state, and local governments have implemented and upheld racist policies to create and maintain segregated communities since this country’s inception. Of course, he’s absolutely right. I wonder if he spoke about the fact that many of these policies were formed as a result of intense lobbying by development and real estate interests that wanted to protect their investments? Kind of like the development and real estate interests that are pouring money into Sacramento right now. It would’ve been nice to hear what he had to say about research from the Urban Displacement Project, which shows that current government policies promoting transit-oriented development have resulted in gentrification, pushing low-income people of color away from transit hubs in LA and the Bay Area.

Bilt Hand

Even though I was standing across the street, I could feel the soothing vibrations emanating from the collective wealth and wisdom gathered inside the Biltmore. So what if most of these people make six figures, live in single-family homes, and drive nice cars? So what if most of them rarely ride transit and never had to worry about getting evicted? They’ve got college degrees and lots of money and they go to a lot of conferences. They’re well qualified to tell the rest of us what to do about housing and transit.

But the protesters kept disrupting all the good vibes I was getting from the Biltmore. I guess some of them are facing eviction, or they’ve already been evicted, and they’re ticked off because they’re losing their homes. Yeah, okay, that’s a bummer. But they need to trust the folks inside the Bltmore. All we need to do is listen to people like Scott Wiener and let developers build tons of new housing around transit. Just because the median income for people living around rail lines in LA is mostly between $30,000 and $40,000 a year, and they could never afford the new units, which usually start around $2,000 a month, is no reason to keep the developers at bay. I’m sure at some point we’ll have such a housing glut that these new units will lose 50% of their value, and then the families that were kicked out could return to their neighborhoods.

So, okay, it could take decades. And yeah, it might never actually happen. But that’s no reason to rethink policies that are displacing the poor and destroying communities.

Is it?

Bilt No Nos

 

Turning Housing into Hotel Rooms

Met Upper

The Metropolitan on Sunset

If you needed any more proof that City Hall has no real interest in solving our housing crisis, you should have come to the September 12 hearing held by the Central Area Planning Commission. On the agenda was an appeal of a decision by the Department of City Planning (DCP) to approve a Conditional Use Permit (CUP) for transient occupancy at the Metropolitan Lofts on Sunset near Van Ness. There’s a long, complicated story behind this, but basically the owners want to be able to turn apartment units into hotel rooms. Susan Hunter, of the LA Tenants Union (LATU), filed an appeal to try and overturn the CUP. But the Commissioners sided with the owners, and gave them the go ahead to allow transient occupancy at the Metropolitan.

The September 12 session was actually continued from the August 8 hearing when the appeal was first heard. Taken together, these two hearings were a mind-numbing demonstration of the DCP’s arrogance and callousness. It has never been clearer that the DCP’s culture is geared toward serving private interests rather than the general public. Most of the Commissioners, along with DCP staff, bent over backwards to make allowances for the owners of the Metropolitan, while throwing the building’s tenants, and renters in general, under the bus.

The story of the Metropolitan is long and complicated, but to give you some background, here’s a brief recap….

The building originally started as a hotel back in the 80s. It ended up getting a reputation as a place to party, and by the 90s it was getting a lot of attention from the LAPD. After a while the owners decided they’d be better off turning it into an apartment building, and the DCP signed off on that in 2006. In their determination letter, the City Planning Commission said the conversion of the Metropolitan’s 52 units was consistent with both the General Plan and the Community Plan, and stated that the change would, “provide increased opportunities for residential living in Hollywood where it is appropriate and needed.”

Fast forward about 10 years. Hollywood has always been a hot spot for tourism, and with the advent of Short-Term Rentals (STRs), property owners can make a bundle posting units on AirBnB or any of the other popular sites that offer “home sharing”. This is especially attractive to landlords, who realize they can make a lot more money by getting rid of tenants and opening the door to tourists. The folks who own the Metropolitan were thinking they could cash in by turning the building back into a hotel, but they came up with a very creative way to do it. They didn’t just ask the City to turn the place back into a hotel, they requested a zoning overlay to make it into a Transit Occupancy Residential Structure (TORS), while maintaining the residential use. This way the owners could use the units as either apartments or hotel rooms, depending on how they feel on any given day.

Do you see a problem here? The small group of tenants who were still left at the Metropolitan sure did. You see, the owners decided they weren’t going to wait for the City’s approval. They actually allowed a company that specializes in STRs, Senstay, to start offering some units to travellers. The tenants started to see all kinds of strangers wandering up and down the halls with their luggage trailing behind. They found themselves letting in guests who didn’t have a key because there was no front desk to help visitors. They sometimes had to wait to use the laundry rooms because housekeeping staff was there ahead of them. And they started to worry about break-ins because things were getting stolen. These problems were piled on top of the problems they already had to deal with, like lighting that didn’t work, long periods when the AC was down, and elevators that were frequently out of service. And to make things even worse, they were required to pay fees for utilities, trash, and sewage through an on-line service which often added late charges for bills paid on time, in addition to a “convenience fee”.

It’s pretty clear that the Metropolitan owners don’t care about their tenants, and would like to get rid of them. Jerry Neuman, the owners’ representative at the hearing, claimed that they treated their tenants well, and that they didn’t intend evict anybody. That doesn’t jibe with the facts. All the residents I spoke to at the Metropolitan confirmed the problems listed above. And while the owners claim they’re not removing housing to make way for hotel rooms, they had allowed the number of tenants to dwindle to 15, and offered those who still remained money to leave. This sounds to me like they’re planning on turning the Metropolitan back into a hotel.

Which brings us back to Senstay. To give Commission President Jennifer Chung-Kim credit, she confronted Neuman with evidence supplied by appellant Hunter that the Metropolitan owners had been renting rooms to tourists for a while. Neuman’s response was one of the few amusing moments in an otherwise grimly depressing ordeal….

“As I understood it, that was a corporate lease. That was not…. I don’t…. and we…. our understanding…. and we have not rented our facility for temporary occupancy.”

But let’s take a look at the way Senstay presents itself on its own web site….

“Building upon Airbnb’s monetization and subsequent creation of a new asset class, we are passionate about bringing our own meld of ‘the sharing economy’ and traditional real estate investing to our clients.”

Senstay exists to facilitate STRs. That’s the business it’s in. When Commissioner Chung-Kim handed him the document, Neuman finally realized his clients were busted, and he decided not to say any more on the subject. There’s some ambiguity about whether the LA Municipal Code allows individuals to rent their homes as STRs, but it is illegal for landlords to turn multiple apartment units into STRs. So did the Commission follow up on this? Did they turn to the representative of the City Attorney’s office, who was sitting right there with them, and ask for an investigation? Did they recommend that the Housing & Community Investment Department take action against the owners for illegally offering apartments as STRs? Nope. They did nothing. They let the Metropolitan owners off the hook without any consequences whatsoever. The Commission just let it slide.

With the exception of Vice President Daphne Brogdon, it seemed like the Commission was ready to give the Metropolitan owners pretty much whatever they wanted. At the August 8 hearing, Brogdon repeatedly questioned the wisdom of allowing 52 apartments to be turned into hotel rooms in the middle of a housing crisis. She pointed out that allowing this dual use could be a precedent, leading to other landlords making the same request.

Neuman’s response? “As much as you may say that Hollywood…, that we have a housing crisis, we have an equal amount of crisis in the number of temporary occupancy units available in Hollywood.” It’s true that tourism is booming, and there is a demand for more hotel rooms throughout the city. But there are 25 hotels within a 1 mile radius of the site, and in Hollywood there are 13 more either under construction or currently making their way through the approval process. On top of all this, AirBnB alone offers hundreds of listings in the Hollywood area, without even counting those offered by platforms like VRBO, Oasis Collections, Housestay, and One Fine Stay. Oh, and let’s not forget Senstay. Honestly, I haven’t heard any stories about tourists sleeping on the street because they couldn’t find a hotel room.

But there are thousands of homeless people sleeping on LA’s streets, and Ellis Act evictions continue to climb, with over 1,000 rent-stabilized units being taken off the market annually. It’s amazing that in Neuman’s eyes the lack of hotel rooms for tourists represents a crisis equal to the lack of housing for residents.

So it was great to have Brogdon at the August 8 hearing to ask tough questions about adding the transit occupancy use. Unfortunately, that was her last day on the Commission. When the hearing continued on September 12, her seat was vacant, and no one was left to speak up for the tenants.

And speaking of the tenants, where were they during all this? None of the tenants that Hunter was representing made it to the August 8 hearing. It’s not always easy for people who work to make it to City Hall at 4:30 pm on a work day. But 4 of them showed up for the continuation in September. They came down because they wanted to speak about the habitability issues they’d experienced at the Metropolitan, and about the difficulty of living in a building that had already been partly converted to a hotel, and about their fears that the owners were planning on getting rid of them.

But they never got the chance to speak. Commission President Chung-Kim decided that since they’d already heard public comment on August 8, there was no need to hear any more. She had mentioned earlier that it was difficult to reopen public comment once it had been closed. Somehow, though, she had no problem doing exactly that back in August when she wanted to hear from the owners’ rep. Toward the close of that session, Chung-Kim wanted to get Neuman’s input on a possible compromise, and it seemed pretty simple to reopen public testimony. But in September somehow that wasn’t possible. This is actually something I’ve often seen at hearings held by the DCP’s various Commissions. They always seem more than willing to let the developers and their reps babble on endlessly, but public comment is usually strictly controlled. At the August hearing and the September continuation, Jerry Neuman had ample opportunity to talk about why his clients needed the CUP, and I’d be willing to bet he spoke more than any other individual in the room. But the tenants Hunter was representing, the people most affected by the change of use, weren’t allowed to say a single word.

Met Hearing 1

A shot of the September hearing.

I’ve been to a number of Commission hearings over the years, and I do feel like there’s definitely a bias in favor of owners and developers. But maybe it’s just me. Maybe I’ve got a chip on my shoulder. Or maybe, since the Commissioners are appointed by the Mayor, they all just share his enthusiasm for aggressive gentrification and rampant displacement. But there could be other reasons, too. It’s interesting that the owners’ rep at this hearing was Jerry Neuman of Liner LLP. In case you haven’t heard of Liner, they’re one of LA’s top lobbying firms. In fact, in the Ethics Commission’s 2nd quarter lobbying report for 2017, Liner ranked number one in terms of payments received, racking up $2,310,565. Pretty impressive. And one of Liner’s top clients is Harridge Development Group. If you take another look at the Ethics report, under the section for clients, you’ll find that Harridge is number 10 in terms of payments reported, having shelled out $118,765. But that’s actually kind of misleading. If you really want to know what kind of money Harridge is throwing around, you should take a look at the number 2 spot on the list. This is where you’ll find Crossroads Associates LLC, which is behind Crossroads Hollywood, a massive complex planned for Sunset and Highland, and even though the name is different, this is also a Harridge project. For this project the client has paid out $393,837, and the recipients were the swell folks at Liner LLP.

So what does all this have to do with the Metropolitan? If you look at the applicant for the Metropolitan’s request to the DCP, you’ll see Brad Woomer, 5825 West Sunset Boulevard, LLC. The company is just another anonymous LLC, but it turns out Woomer is the Chief Financial Officer for Harridge. So the people behind the request for transient occupancy at the Metropolitan just happen to be the same people who figure so prominently on the Ethics Commission’s lobbying report. And the firm handling the request is none other than Liner LLP, which ranked number one in terms of payments recieved in the same report. Liner is definitely well connected. Among the agencies they’ve lobbied for the Crossroads project are the City Attorney, the City Council, Building & Safety, and of course, the Department of City Planning.

But maybe this has nothing to do with how the Metropolitan hearing went. Maybe I’m just a crazy conspiracy freak with nothing better to do than pore over Ethics Commission reports and show up at grindingly dull Commission hearings. (Seriously, I think I need to get a life.) Whatever the reason, the Commissioners voted to deny the appeal and grant the CUP. The Metropolitan owners can now legally turn residential units into hotel rooms. And since this does seem to be a precedent, it opens the doors for other landlords to do exactly the same thing.

Still, the Commission had to make it look like they were taking care of the tenants. So between the August and September hearings, Neuman met with DCP staff to work out a set of conditions that were supposedly going to make everything okay. The conditions included granting the remaining tenants a 4 month extension on their lease, and the option to move to a part of the building where they would be consolidated, the idea being that this would resolve conflicts with short-term guests. The Commission acted as though they were doing everything they could to protect the tenants, but it’s really all a game, because the City rarely enforces any of these conditions. Even when violations are brought to the City’s attention, enforcement is generally so lax as to be meaningless. Agreements like these are put in place to make it look like the DCP is doing its job. Once the hearing is over, it’s just a lot of language to be stuck in a file and forgotten.

So that was it. The Commissioners denied the appeal. The Metropolitan owners got their CUP. And after it was over the tenants stood outside the hearing room, realizing that the City had thrown them under the bus. For me it was one more maddening demonstration of the City’s staggering disregard for the rights of LA’s renters. I can’t imagine how the tenants felt. The DCP seemed to be saying to them, “We just don’t give a damn about you.”

The appellant, Susan Hunter, who’s a friend of mine, was frustrated, but has refused to give up. She’s been working on trying to find legal representation for the tenants so they can get relief from the courts. This isn’t her first fight, and it won’t be her last. I have to give credit to Susan for her tenacity, and to all the others in this town who keep pushing for some kind of justice. It’s got to be tough to keep going when the deck is clearly stacked against you.

P.S.
In the post above I mentioned Jerry Neuman’s claim that the owners had no intention of evicting anybody, and that they just wanted the option to post vacant units for transient occupancy. Well, since the hearing I’ve been told by Susan Hunter that the tenants she does not represent have been told to vacate the premises. They’re supposed to be out by Christmas.

Met Side