Plans for a hotel, retail and residential project in downtown L.A.’s South Park district are facing significant challenges.
Olympic on Grand LLC, a company formed by L.A. developer Titan Organization Inc., has filed for Chapter 11 bankruptcy.
Titan’s president, Richardson Robertson III, said Olympic on Grand is restructuring because of financing problems for the mixed-use project. The company has about $9 million in unsecured debt, according to its bankruptcy filing.
Olympic on Grand bought the 58,000-square-foot property at the corner of Olympic Boulevard and Grand Avenue in 2006, then served as landlord to entertainment venue Crash Mansion, a club and concert venue that moved into the site previously leased by Grand Avenue Night Club. Crash Mansion closed in 2008, after disputes over zoning and back taxes, loss of its liquor license and a shooting in the parking lot that resulted in the death of a 19-year-old clubgoer.
Olympic on Grand, which is not affiliated with Crash Mansion, is one of the defendants in the wrongful death lawsuit.
Robertson said the company also has an $18 million loan from Corona-based Vineyard National Bancorp, which is struggling with losses from its residential construction portfolio. He said the bank wasn’t able to extend the maturity of the loan to May, in accordance with the loan’s original terms.
“We’re looking for financing elsewhere,” Robertson said. “When that financing is secured, which should be shortly, all those patient people will be paid. This is just a temporary situation.”
More Green
Tender Greens, a fast-casual restaurant best known for its salads, plans to open two locations one in West Hollywood this month and another in Hollywood in May.
L.A.-based T.Y.P. Restaurant Group Inc. opened its first Tender Greens in Culver City in 2006, and a second location in San Diego opened last year.
The owners David Dressler, Matt Lyman and Erik Oberholtzer have backgrounds in hotel food service from Shutters on the Beach and Casa del Mar in Santa Monica, and they expect the chefs who run new locations to share their passion for food.
Each new chef must have experience running a kitchen, at least five years of management experience and a white-tablecloth pedigree.
“It matters that the recipe is followed and fresh ingredients are used,” said Dressler. “In every aspect of our product there has to be somebody looking out for that for us. We need someone to maintain quality.”
Once on board, these chefs become operating partners, who are paid a salary but also offered stock options and bonuses based on performance. They can also have a hand in opening up more locations in their territories.
Pete Balistreri, who operates the company’s San Diego location and was formerly with restaurant A.R. Valentien at the Lodge at Torrey Pines, is scouting another location in the San Diego area.
The Hollywood and West Hollywood locations will be opened by Fermin Arias, another Shutters alumnus.
More Trouble
L.A.-based M & C; Apparel Group Inc., better known as high-end apparel label Mike & Chris, has filed for Chapter 7 bankruptcy. The company, founded by husband and wife team Mike Gonzalez and Christine Park-Gonzalez, had recently announced a licensing deal with Green Mochi LLC, which owns L.A. label Twelfth Street by Cynthia Vincent. Mike Gonzalez also recently filed for a personal Chapter 11 restructuring. A call to Mike & Chris’ attorney was not returned.
News & Notes
Crescent Hotel in Beverly Hills is offering Pink Slip Parties, a happy hour featuring discounted food and drink, and networking with job recruiters. The first event is slated for Feb. 3, and in the future will be the first Tuesday of every month through April. Garrison Investment Group, a New York investment firm, took control of the Queen Mary from Save the Queen LLC with a $25,000 bid at an auction in New York last week. Save the Queen borrowed $33 million from Garrison in 2007 so it could acquire the ship’s lease and development rights, but the company defaulted on the payments. The U.S. Consumer Product Safety Commission and Malibu-based Jakks Pacific Inc. announced a voluntary recall Jan. 29 of five models of the company’s Spa Factory Aromatherapy Fountain and Bath Benefits kits. There have been 88 reports of the caps on the jars of fizzy bath balls blowing off due to carbon dioxide buildup. The incidents resulted in 13 reported injuries.
Staff reporter Maya Meinert can be reached at [email protected] or at (323) 549-5225, ext. 228.
