City’s Flip-Flops Stall Development

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You have probably heard many stories of property owners in the city of Los Angeles having to go through hell to develop their property. My story adds a new twist to this seemingly never-ending City Hall saga.

I own a 19-acre piece of land right along the eastside of the 101 freeway in the Cahuenga Pass. In 2014, I met with then-City Councilman Tom LaBonge, who asked me if the city could purchase part of my property to use as open-space parkland with a small parking lot and hiking trail. The trail would connect to an existing trail that circles the Hollywood Reservoir.

After months-long discussions, I agreed to donate 10 acres of my land to the city, in exchange for the city allowing me to build an apartment building on the remaining acreage along Cahuenga Boulevard. The property immediately adjacent to mine had been developed into a large apartment complex several decades ago.

In October 2014, Councilman LaBonge made a motion to the City Council to initiate the zoning and administrative approvals needed for the transaction. After three public hearings before two council committees, the City Council adopted the motion in March 2015.

But that was just the beginning of the process. With the motion’s adoption, I then became responsible for paying for all of the plans, studies, and environmental reports required by the city. Working for over a year, I spent $400,000 on architects, engineers, attorneys, and consultants. The project was designed to include 250 apartments, with amenities including a community cyber coffee house, rooftop yoga and wellness decks, and an on-site “transit station” to provide shuttle service to the Universal City subway station and dedicated space for car-sharing services.

I would also be paying for building the public parking lot, improving the hiking trail, and widening Cahuenga.

Just as the project was ready for the first of many required public meetings in the approval process, we received word that the newly elected councilman for the area, David Ryu, was going to move to reverse the City Council’s previous action.

I say “received word” because I never spoke to Ryu himself. As it turns out, the councilman, who had won a hard-fought election against LaBonge’s former deputy, was going back and overturning a number of projects initiated under LaBonge. I was told by Ryu’s staff that it made no difference that I had spent a year of my life and $400,000 of my money in reliance upon a unanimous action of the City Council.

It was April Fool’s Day when the City Council first heard Ryu’s motion to rescind the city’s previous action. After a two-minute public hearing, the entire City Council left the room and went on to discuss the matter in secret for 90 minutes in a closed session. They then emerged from closed session and adopted Ryu’s motion.

‘Start over’

After my attorney complained that the closed session violated state open-meeting laws, the City Council fittingly rescheduled the matter to be reheard on Friday the 13th. At 4:30 p.m. on the day before that rehearing, Ryu finally met with me. When asked what he would like to see developed on my property, he gave no direction, insisting only that LaBonge’s action had to be rescinded and that I had to “start over.”

The only council member to speak at the do-over rescission hearing stated that while the city needs housing and construction jobs, he would follow the longstanding tradition of supporting the council member from the district where the property is located. The council voted to re-rescind the original go-ahead for the project.

Unfortunately, this nonsense goes on all the time. New housing, public benefits, and job creation are left to die while political scores are settled and political favors are traded. Regardless of the public good, council members support the whims of their colleagues, expecting the quid pro quo regarding projects in their districts.

I will continue to pursue my rights both legally and through the political process. But all of us in the L.A. business community need to say enough is enough, and raise our voices together if the shenanigans at City Hall are ever going to stop.

Ben Forat is owner of Studio City Hand Car Wash in addition to his real estate development pursuits.

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