L.A. politicos don't understand what they vote on. Taxpayers are on the hook
By Tibby Rothman [Is that Jill Stewart's pen name?]
From LAWeekly.com
* Bill Witte, president of Related Companies, told L.A. Weekly that the delay (is based on) challenges they face over how to build the Frank Gehry–designed complex of shops, condos and a hotel adjacent to Disney Hall. It's the "most complicated design ... L.A. has ever seen," Witte says. [WELL LA-DEE-F*CKING DA! AREN'T YOU SPECTACULAR!]In addition, he says, they needed more time to deal with the unexpected soaring costs of materials. But an expert familiar with such large projects says that the costs of materials "has been off the charts" since late 2005 or early 2006. It's not a recent phenomenon, as Witte claims. [Oh hell naw it ain't new...it's about the first thing I blogged about in 2006...RISING CEMENT AND CONSTRUCTION COSTS DUE TO EMERGING MARKETS LIKE CHINA & INDIA THAT ARE SUCKING UP ALL THE CEMENT!]
* The affordable housing and the retooled square are not extra public "benefits" arising from a private project. Both are being extensively paid for by the taxpayers. In a bizarre recent move, $30 million from a housing fund created by California voters to help house the poor and battered women was diverted to help cover the price of the 16-acre "Civic Park" that's recently emerged as little more than a square with a few trees and is clearly designed for commercial uses. [You've heard ZD screaming about Prop 1c (Emergency Shelter Trust Fund Money going to the Grand Avenue Project "Cement Commercial Zone" (Park)!]
* In a government e-mail obtained by the Weekly, one city expert on housing subsidies also sharply questioned the taxpayer help pouring into the Grand's affordable housing component. The private e-mail from a staffer at the Community Redevelopment Agency, dated August 1, 2007, notes that Related Companies got a hefty $10 million in taxpayer funds to subsidize 100 affordable units at the Grand. By comparison, a developer in an unrelated project got $8 million to subsidize 259 affordable units. [ZD says this big Grand Ave Project doesn't ADD any new affordable units...the CRA just folded units to be built anyway, into this project. BAM-BOOZLE!]
* From the beginning, the numbers on the Grand never penciled out. "Nothing would give me more pleasure than to say that this thing's a crock and it's going to die, but I don't think it's true," says one real estate expert familiar with the Grand. Because Related strikes so many public/private deals with other city halls across the country, it can't be seen as abandoning a flagship project. "They can't be perceived to be 'walking away,'" the expert notes. "What does strike me," he warns, "is that the pattern of this project has been to ask for progressively more public support and assistance."
[Seriously, y'all KNOW I did an LA Weekly article on this MYSELF, I thought it was so shady once I read the Grand Ave Project Board Memo detailing (or lack of detailing) the project.
MY IMMEDIATE CONCERNS WERE THAT THEY CAN WEASEL OUT OF BUILDING THE AFFORDABLE HOUSING ON-SITE (the main benefit they touted....the rich living with the poor); the fact that skyrocketing costs were ahead and whatever price tag they promised was more like a starting point; and I took the most flack for suggesting this thing might not ever see the pouring of cement over the park -- besides the fact that it should be shut down entirely since it is a completely unlawful project.
LA Weekly readers comment:
- Look south: Related is also running into legal trouble in San Diego, with the "redevelopment agency" taxpayer-subsidized arm of the City, Centre City Development Corporation, at the center of the storm. Read blogofsandiego.com and voiceofsandiego.org for details.Comment by carol from San diego on Aug 21st, 2008, 21:14 pm
- Uh....Comment by McRib from LA on Aug 21st, 2008, 22:50 pm
How many completed redevelopment projects has the CRA returned to the city with increased property taxes going to the city instead of the CRA? I would guess none even though the CRA has been at it for more than 40 years. That's what they are supposed to do, ya know.
CLICK HERE FOR A GRAND DADDY OF GRAND AVENUE ARTICLES!
Here's how the project was described by ZD in June '07 after reading the board memo:
"A fairy tale about a billionaire's dream project that may, or may not come true. If the city is lucky, from a financial point of view, it won't."
(Helen Keller could have seen all of these problems and delays ahead, while blindfolded. Tommy just called...even he can tell this project is loser and doesn't think Eli Broad or Bill Witte are wizards.)
NEW: LA City NewsHere's how the project was described by ZD in June '07 after reading the board memo:
"A fairy tale about a billionaire's dream project that may, or may not come true. If the city is lucky, from a financial point of view, it won't."
(Helen Keller could have seen all of these problems and delays ahead, while blindfolded. Tommy just called...even he can tell this project is loser and doesn't think Eli Broad or Bill Witte are wizards.)
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