Plagues

Dntn Skyline w Fwy 200314

The last couple of weeks have been pretty intense. The coronavirus is spreading in the US and a national emergency has now been declared. At the same time stock markets, in the US and around the world, have been plunging, with fears of another recession on the minds of many.

LA County declared a state of emergency earlier this month, and as concern has grown over the spread of the virus, local and State officials have been weighing their options, trying to figure out how to respond rationally without creating a panic. Last week the Los Angeles Unified School District decided to close all schools. LA City Hall and LA County Courts are either postponing hearings or trying to find alternatives that don’t involve bringing lots of people together in a single room.

And in addition to all that, on Monday it was announced that former LA City Councilmember Mitch Englander was being charged by the Justice Department with obstructing a corruption investigation. The Feds have accused Englander of witness tampering and making false statements. While Englander stepped down from the City Council a while ago, this case could well have implications for people currently serving at City Hall.

So it’s been a wild couple of weeks. I have to say I feel kind of overwhelmed and confused. Of course the immediate concern is the coronavirus. I’ve been checking the LA County Department of Health web site every day. On Sunday they had identified 53 cases within the County, and officials were telling us to avoid non-essential travel and to stay away from public gatherings. Today the number is 144, and theatres, bars and gyms have been ordered to close. Restaurants can stay open, but only for take-out orders. As the news gets worse, you can feel a general sense of anxiety in the air.

On Saturday I was out of the house for most of the afternoon, and I’m realizing now that’s the last time I’ll be roaming around the city for a while. At that point it sounded like going out was okay, as long as you didn’t hug anybody and kept washing your hands. And I have to say I was curious to see what was happening on the streets. Remembering the photos I’d seen in February of deserted boulevards and public squares in Wuhan and Beijing, I was wondering if we’d gotten to that point in LA.

Hlwd Blvd People

That wasn’t the case on Saturday. People were still out and about. I went to the market to pick up a couple of things. The place was packed, and a number of items seemed to be sold out, but most of the shelves still held plenty of goods.

Hlwd TJ Refrig

Next I went to a coffee house on Cahuenga. There were about half a dozen people inside, which seemed more or less normal, but when I asked the woman at the counter how business was, she said “Super dead.” Also, when I asked for a mug, she said they were only using disposable cups. I assume that was to avoid transmitting germs.

Hlwd Groundworks

Based on the latest updates, it does look like life in LA was be pretty different for at least the next couple of weeks, but I imagine we’ll pull through. Humanity has dealt with contagious diseases in the past, and I feel confident we’ll eventually put this one behind us. But there’s another kind of plague that’s been afflicting LA for a while, and unfortunately it looks like it will be with us for a long time to come.

I’m talking about corruption.

Corruption is a disease that’s been with us since the beginning of time. It’s always present in one form or another, but in some cases it turns both chronic and acute. For the last several years in LA we’ve been experiencing a major outbreak among our elected officials, and I doubt we’ll see a cure any time soon. Citizens have been saying for years that members of the City Council are infected, but for the most part the Council is in denial. Local media has published a number of stories that seem to confirm that the disease is running rampant at City Hall, but the few efforts that have been made to rein it in don’t appear to have taken hold.

The Englander story is just the latest episode in a long and tawdry saga. The former Councilmember is accused of having accepted tens of thousands of dollars in cash and gifts from a businessperson in exchange for facilitating connections with a developer. You might think that since Englander no longer serves on the Council that the problem has already been taken care of. No such luck. Englander’s seat on the Council has been filled by a former aide, John Lee. Lee apparently accompanied Englander on the trip to Vegas where much of the money changed hands. He claims he wasn’t aware of anything illegal taking place, but the Feds’ indictment refers to a “City Staffer B” who sounds very much like Lee. Apparently both Englander and City Staffer B sent checks to the businessperson to reimburse them for part of the cost of the trip. Unfortunately, both checks were backdated to August 4 in an apparent attempt to make it look like they were sent before the FBI started asking questions. If this is true, then Lee is also guilty of falsifying documents.

Then there’s Arman Gabay, co-founder of the Charles Company, which filed an application years ago to build a large project in South LA. Initially the project received strong support from Councilmember Herb Wesson, who helped the developer win millions of dollars in federal loans. Coincidentally, Gabay, his family members and associates, had contributed thousands of dollars to campaign and officeholder accounts associated with Wesson. But last year the developer was charged by the Department of Justice with having bribed a County official. The trial is still pending, but the project is dead. At some point after Gabay was hit with the bribery charge, Wesson decided he could no longer lend his support. Interestingly, a recent filing by the US Attorney in the Gabay case says that wiretaps captured conversations between the developer and public officials about permitting problems and government financing for a proposed project. According to the filing, Gabay was told he could resolve the problems if he made a $10,000 campaign contribution. Sadly, the filing does not disclose the name of the official who received the contribution. We can only guess.

And let’s not forget Councilmember Jose Huizar. In 2018 the FBI raided Huizar’s home and office, and apparently among the things they were searching for were records related to the Councilmember’s fundraising efforts. Would Huizar take money from developers in exchange for project approvals? The FBI won’t discuss specifics, but the LA Times reported that a campaign committee with ties to the Councilmember received $50,000 from Onni Group just two months before a key vote on a property where the developer planned to build.  No charges have yet been filed against Huizar, but the Feds aren’t the only thing on his mind. He’s also being sued by two former staffers. Among other things, the suits allege that the Councilmember was guilty of sexual misconduct, that he retaliated against those who voiced criticisms, and that he required staff members to engage in fundraising efforts during office hours.

There’s plenty more dirt to dish on the City Council, but you get the point. And actually, I could forgive a lot of things if our elected officials were just doing a decent job of running the City. But LA is falling apart. We’re in serious trouble. It’s not just that the development process has been completely poisoned by a pay-to-play culture. The way City Hall does business is inherently opaque and dishonest. A classic example is last year’s budget process. When the budget was passed in mid-2019, elected officials were patting themselves on the back and claiming that the City would see a surplus of $30 million to $70 million annually over the next four years. What a shock when six months later we were told that the City was now facing annual deficits of $200 million to $400 million over the next four years. What happened? Apparently when the City Council passed the budget they neglected to mention that they were negotiating contracts with city employees that would blow a huge hole in the City’s finances. They decided not to inform citizens about the cost of the contracts until it was done deal. Everything was done behind closed doors. Once again the public was shut out.

Our elected officials talk about addressing homelessness, but the number of people on the streets continues to rise. Renters are getting thrown out of their apartments because they can’t pay high housing costs. Streets and sidewalks are crumbling, and even with record revenues City Hall can’t find the money to maintain them properly. The urban forest, crucial to replenishing groundwater and keeping the air clean, continues to decline due to years of neglect. The Mayor blathers on about getting people out of cars and onto transit, but DASH ridership has fallen from 25 million trips in 2014 to 19 million trips in 2019. (I won’t mention Metro’s depressing ridership stats. They’re a County operation.)

And with another recession just around the corner, it looks like things will only get worse. If the Mayor and the City Council couldn’t put this house in order when times were good, what’s going to happen when the bottom falls out of the economy? The culture of corruption that pervades City Hall has fostered a secretive and opaque decision-making process where deals are cut behind closed doors and the public is kept in the dark.

This is the real plague that’s taking LA down. We’ll survive the coronavirus. It’s City Hall that’s going to kill us.

Dntn Distant 2

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