Controversial profiteer in runaway film production Hal Katersky appealed to the Community Redevelopment Agency Board on Thursday to live up to the terms of its deal to give him a $4 million gift (plus the $4 million more it has invested) and go forward with building an office building at 1601 N. Vine. St.
Katersky and lawyer-lobbyist Bill Delvac made their case before the before the board after CRA staff presented their case in support of the project even as they admitted critical documents were missing and that they agreed to the $4 million subsidy based on the developer’s property appraisals which at the time — and now — were nearly 40 percent higher than their own.
CRA Commissioner Madeleine Janis acknowledged that the project is the poster child for abolishing the CRA as Gov. Jerry Brown has proposed and urged the board to pull the development agreement back from the City Council for further review and possible negotiations. The Council has put the issue on its agenda 12 times in the last eight months and had to pull it back because of damaging disclosures about how the deal was done.
Well that means 4 million to be paid out by some Insurance Company.
Council President Eric Garcetti please end our long national nightmare, call in the FBI and clean up America’s 2nd largest City!
This charade brought up more questions and answers. If this goes unchecked, there is no public integrity in Los Angeles.
I still haven’t heard this entire meeting, but for a Developer to claim “We’ve taken the Risk” is meaningless and the public needs to understand how crooked this whole deal is.
This is very much like the Story Training Day, if this deal doesn’t close, someone’s going to fall.
In many ways, Katersky is a small player here.
No matter how bad Katersky and his clan are, the real culprit is all of those who had knowledge and/or were responsible for covering up this guys background and not performing due dillegnce.
More importantly is the potential crimes committed. This involves state tax increment funds and the concealment of a lower appraisal is huge.
This is huge. The public was defrauded out of more than 1 million dollars.
The CRA is not a law enforcement agency and current Government Officials, Employees, and those at the CRA – BOTH PRESENT and FORMER were involved.
Current Govt. Officials and Employees (those that won’t be sacrafised) are protected by the attorney-client previlege of the City Attorney’s office.
Madeline Janice sounds like the smartest one at the CRA – She gets it!
Now Ms. Janice, step up to the plate and publicly call for an FBI investigate and clear this matter up once and for all.
This is a Case Study in what’s wrong with the CRA and Corruption in LA.
It is very important to understand, that Katersky CANNOT successfully sue the City of LA because he took RISKS – There is NEVER any guarantee that a legislature, in this case the LA City Council will approve this.
Hey Republicans – I thought “taking risks” was what free enterprise was all about. I don’t think it was about depending on government subsidies.
If so, it would be illegal because then there is no discretion for the City Council.
If Katersky tried to sue the City, the City Attorney would have a home run and become almost as popular as Gov. Brown is today with his bold proposal to abolish all CRAs.
Major changes include the bankruptcy of Albuquerque Sudios, the Culver Sutdios litigation that accused katersky and arnold of fraud and embezzelment, and the disclosure of other ligation in New Orleans and Oklahoma. Was all this disclosed?
Answer to Humphreville’s questions are No, no, and no. And that is part of Concealment.
Two fatal flaws occured in the meeting on Jan. 20, 2011:
1. Katersky claimed that he continues to manage Albuquerque studios. This is called into question by Ron Kaye’s in the article he cited under “Editor’s Note.”
2. Katersky’s lawyer stated that the CRA didn’t pay to high of a price and that no matter what, it is a sunk cost.
Katersky’s attoreny went on to say that by selling the property to Katersky (at a heavily reduced price), the CRA won’t lose anything.
But everybodies forgetting the 800-lb guerrilla in the room:
Concealment of an apprisal with a lower price may well contituent fraud and is criminal. The City Attorney, the CRA, and the City Council all have been given the evidence and yet have done nothing.
lawyer-lobbyist Bill Delvac
Is Bill any relation to Barbara Delvac who contributed $2,000.00 to the Friends of Paul Krekorian in September fo 2010?
Who cares about the money you spent Mr. Katersky? In a free-market system, you take risk. Just look at all of your screw ups of the past:
Even in the video you are touting your past projects as great experience:
1. Culver Studios: Lawsuit about who really owns or controls the studio. Result? Katersky booted out of running Culver Studios and Katersky’s group had to pay the studios in a settlement. Katersky doesn’t want that settlement made public because of his embarrassment.
2. ABQ: Bankrupt and Katersky will be booted out of their too.
3. Oklahoma Securities Fraud: Katersky booted of OK and told not to sell securities anyware in the State.
Now Katersky and his legal team are subtley threatening LA – That is called Blackmail and that is just another reason for an FBI investigation to start to clean up all the corruption in Los Angeles.
To the Mayor and City Council Leadership: Why won’t you clean up LA? Hopefully you have nothing to hide.
Ten to one, the real reason there has been no criminal investigation is that Garcetti would be Target #1. No one has the guts to investigate a Trust Fund Baby whose Daddy is the former District Attorney.