OH NO...Villaraigosa's LUXURY Downtown Condo Scheme About To Go BUST!
The new building with the mirrors and glass on 9th and Flower. They ran out of money to finish it already. Due to the credit squeeze they can't get any more money to finish the project. There will about 1000 (ONE THOUSAND) LUXURY condo units that were apporved by City Hall with all that shady investment money. There are 200 luxury condos in the Marriott and luxury condos all across downtown that are going on line, just when there are no takers. And sellers of these units tell ZD that buyers they are hoping buy these units do not want to live downtown with all the "skid row" adjacent problems.
They are all in court now arguing with judges how many cents on the dollar all the developers will be paying back to creditors. Look for about ten cents on the dollar on any city or pension money that was invested. The entire real estate market is about to implode, to follow up the residential foreclosures. Because no one wants to re-finance anyone, anymore. And the money got all sucked up and now there is no money to finish these projects.
MORE I TOLD YOU SOs FROM ZUMA DOGG ON THIS ISSUE THAT WILL BE THE NEXT REALLY BIG TICKET ITEM THAT WILL BE FORCED TO BE PLACED ON THE AGENDA.
Now wonder GOLD is over $1000 today, and someone tells me it's gonna be way worse (is that possible) than Zuma Dogg predicted. (I'M OFFENDED BY THAT!)
So now that I have proven to the city that this was another BIG TICKET item that I warned of for the past couple years ("We are going to have plenty of affordable housing downtown as all these luxury units sit vacant, plummeting in value (ME-MORIEEEEEEEEEES, Light the cooooooorners of my mind, as I reflect back on the wave of warnings I issued over this problem on the record before council.)
SO WHAT WOULD I DO AS COUNCILMEMBER?
The first thing would be to now issue "commercial real estate forclosure prevention measures" and have the city do whatever it will take to try and salvage this situation. And this is where the REAL city PAIN begins. EVERYTHING UP TILL NOW HAS BEEN "WARM UP" FOR THE BIG STUFF LIKE DOWNTOWN LOS ANGELES REAL ESTATE.
I THINK A WHOLE BIG ENCHALADA IS ABOUT TO BE EXPOSED AND UNRAVELED WHEN THE BOOKS ARE OPEN ON THESE PROJECTS AND JUDGES START LOOKING INTO CREDITOR SETTLEMENTS (I HEARD THEY HAVE STARTED) AND PEOPLE FIND OUT THE SHENNANIGANS THAT HAS BEEN GOING ON IN THE DOWNTOWN REAL ESTATE MARKET.
So as Councilmember, even though it's not my district, some of this stuff will be the same problem in CD 2, so I can open up the dialogue and a motion to access and address the citywide problem, it's impact and measures to be taken to work with the commercial real estate market in the same we have for the residential homes, all of which will have a much smaller impact once this kicks in.
AND THEN, I will start seeking out the solutions and measures that can be taken by calling and meeting with community members who have the answers/ideas and the city hall insiders and real estate developers themselves (because how do you think I heard about this...NOT from the Neighborhood Council meeting), although I think many of the NC members may know how to address the problem...and again, I know who to go to for the REAL, pragmatic measures that need to be taken to prevent, "Commercial Real Estate Blight" Downtown...AND this next commercial wave of economic doom is certain to cause "trickle down" problems at the city coffer level as City Hall takes in MUCH less (MUCH, MUCH less) in property taxes and related revenues associated with 1000 NEW LUXURY CONDOS BEING SOLD...rather than foreclosed on.
WAY TO GO ANTONIO and YOUR Los Angeles City Council (without Zuma Dogg there).
http://ElectZuma.com (What you should tell people to do on Tuesday September 22nd!)
And thank you to the people throughout the community who tell me they may have to be out there supporting other candidates, but when they are speaking in their own circles...