Hollywood activist Bob Blue has played the key role in raising questions about the Community Redevelopment Agency giveaway of millions of dollars in public money to fund an office building at 1601 N. Vine for a developer bedeviled by lawsuits and bankruptcy as he tries to profit from runaway production.
On Thursday, the CRA cleared the way for the deal to go forward for developer Hal Katersky and his Santa Monica-based Pacifica Ventures by unanimously agreeing to a $1.1 million settlement paid by taxpayers and the developer to get Molly’s Burgers to move from the site.
That’s a lot of money for a hamburger stand.
But the CRA had no qualms in approving it in a closed meeting and offering no rationale in public for its action. Not a single word was spoken in public by board members or staff to justify this controversial action on a controversial project that has been widely criticized here and on City Watch LA. Just a perfunctory voice vote.
The video shows the board going into closed session after CRA head Chris Essel announced she has a conflict of interest and has to recuse herself on a series of awsuits involving another controversial project involving abuse of eminent domain laws and subsidies to a developer with questionable financial credentials.
After the closed session, Katersky’s lobbyist Bill Delvac dismissed all questions about the 1601 N. Vine St. project as nonsense without going into detail.
Bob Blue spoke briefly, referring to his detailed letter of objection (Blue-Objections.pdf) and supporting documents that question the whole deal.
“The Vine Street Tower (Project) raises many legal, fiduciary, and ethical questions
especially in light of heightened public awareness after the scandal in the City of
Bell,” Blue’s letter says in part.
“The terms and conditions of this agreement and previously approved agreements should be overturned. Furthermore, the CRA/LA should launch an internal audit to determine how this project was allowed to continue and implement “lessons learned” to make sure that proper oversight, due diligence, fiduciary responsibility, and proper risk management is carried out on this and future projects.
“The number and magnitude of the issues raised by this project are so great that
they warrant a full investigation by an independent law enforcement agency
including a detailed audit of the entire matter leading up to these items being
brought before you.”
Delvac was apparently more persuasive since the board agreed with him without explanation, without even engaging any of the issues that Blue raised.
L.A. is Bell on steroids.
It only gets worse. Bad deal. Bad people. Two negatives make a positive?
Simple question: Why do we even have “Citizen Oversight” on Commissions if they are really a “rubber stamp” in the face of obvious failures of fundamental protections of taxpayer-financed projects?
The CRA has faced several audits from the City Controller’s Office (pre-Wendy Greuel).
One of the recommendations of Controller Tuttle’s audits involved the handling of property acquisitions and appraisals. The October 30, 2000 audit of the 1998 purchase of land by the CRA from Ullman brought this up and a November 2000 audit recommended that at least 2 independent appraisals be performed.
Ironically, just 6 years after this audit report, in October of 2006, the CRA was involved in a property transaction with the very same owner, Ullman. The CRA attempted to keep an arms length by having an intermediary, Katersky’s LLC, inserted between them and Ullman.
Yet in the purchase of this property (1601 North Vine), a SINGLE fee-simple appraisal was used.
Since the oversight was neglected by CRA managers and Commissioners, the venue of last resort is the elected members of the LA City Council.
Just wait to hear a speech from Council President Garcetti about the great things for Hollywood, the need to bring back the Entertainment Industry, and of course jobs. Who cares about ethics, due diligence and responsible financial practices?
Hey, if its just about jobs, let’s bring in a cigarette shop across the street from a high school.
And of course, expect to hear from Council member La Bonge, the “Cal Worthington” – [coined by reporter Kevin Butler].
La Bonge is one of the even numbered seats and is being challenged for the 2011 by Stephen Box.
So, in the end, it is up to the voters. If you think that this is corrupt and wrong, let your elected officials know and hold them responsible for the failures that will be discovered after they leave office.
Steve Cooley isn’t man enough to take on Los Angeles City Hall. And it’s a shame because the thieves are thick at City Hall.
Steve Cooley isn’t man enough to take on Los Angeles City Hall. And it’s a shame because the thieves are thick at City Hall.