Sterling Says He’ll Push Ahead With Homeless Project

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After telling the Business Journal last month that he might cancel plans for a Skid Row homeless center because of a lack of political support, billionaire Donald Sterling has moved forward with the project.


Sterling’s proposed center has a home now that he closed escrow Dec. 6 on warehouse property at 600 Wall St. He paid about $12 million for the property, the location of a 60,000-square-foot import/export toy warehouse.


“We are onward and upward, looking forward to doing a collaboration to make a good community center,” said Bradley Luster, Sterling’s real estate broker.


The center, which would not include housing, would have a medical clinic, work training center and a community court, among other features. The deal closed despite Sterling not yet having found a non-profit organization to operate the center.


As part of the land sale, former owner Tony Ta will lease it back for $25,000 a month, allowing Sterling some time to find an operator. In turn, Ta plans to sublease space at the warehouse to short term tenants.


“We definitely feel Don Sterling is doing a great thing,” said Peter Ta, Ta’s nephew and an independent real estate broker who assists his uncle with business deals. “There are not many people who can do something like this.”


Ta said that his uncle had opportunities to sell the property to other parties, but when Sterling said he was interested in the parcel, it was an easy decision to go with the real estate mogul.


“We had several buyers at the time and we decided to go with (Sterling). In a way, my uncle knew he was doing something for the community, because he helped Don with this project and maybe some good fortune will come back to my uncle. He is Buddhist, it’s a good deed,” Ta said.


Luster said that construction on the center could begin in as soon as 18 months but no longer than three years. The Midnight Mission, a homeless service provider, has been mentioned as a possible partner.


Orlando Ward, director of public affairs for the mission, said the organization would consider operating Sterling’s facility, but staffing and operational needs would have to be addressed.


“We did have conversations with Sterling, some very fruitful conversations, in the spring. There was a willingness to do whatever we could do to help get this off ground,” he said. “We would have to consider that we have limited resources, financial and staff wise. In a project of that size, it would be a real drain on our resources. We’d have to look at the partnership opportunity.”


Sterling also has sought to build political support for his project, and plans to have dinner soon with Councilwoman Jan Perry, who represents the area, Luster said.


Perry has not previously met with Sterling to discuss the project, stating she has a practice of not speaking with developers about their proposals unless they have “site control,” meaning ownership or a long-term lease.


Perry and Sterling did not respond to calls for comment.

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