Tag Archives: Sheppard Mullin

Los Angeles City Council, Los Angeles City Government

Ever Wonder How One Of These Super-Sized Construction Projects Downtown Gets Built? — Here Is An Unprecedented Look Into How City Councilmembers And Developers Work As Partners To Subvert And Sideline Civil Service Staff And Basically Give Away Piece After Irreplaceable Piece Of Our City To Further Their Own Interests — Laid Out Step By Covert And Appalling Step — In The Case — Still Ongoing — Of 1330 W. Pico In CD1 — From Gil Cedillo’s First Meeting In August 2017 With Zillionaire Eri Kroh Of Sandstone Properties — Through Three Distinct Motions — Every Last One Of Which Signed By Cedillo But Written By A Lobbyist — And Sheparded Through City Staff — And Council Committees — And Council — By Cedillo’s Planning Director Gerald Gubatan — Who Insulted And Belittled Any Civil Service Staff Who Dared To Question Any Aspect Of The Project — Through CD1 Assistant Chief Of Staff Tony Ricasa’s Apparent Derailment Of Matt Szabo’s Plan To Use The Building For Homeless Housing — And Much Much More — Including Links To Hundreds Of Emails — And Draft Motions — And So On

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Here in Los Angeles we read a lot of news about real estate development, real estate being the sun about which every local planet orbits. And this reporting mostly tells the truth, and probably nothing but the truth, but for the most part never the whole truth. Just for instance, consider the property at 1330 W. Pico Blvd. This parcel has been in the news since October 2017, when real estate developer Sandstone Properties bought it for $42 million, planning to build yet another hotel. Here’s The Real Deal’s story on the purchase.

The next reported-on milestone was in June 2018 when Gil Cedillo, in whose Council District the property is, introduced a rezoning motion allowing a hotel to be built at the address. Here’s The Real Deal’s story on that, and at this point Urbanize.LA1 initiated coverage with this equally superficial story. A few months later Cedillo moved to give the hotel hefty tax incentives,2 which was covered in the Downtown News as well as the two previous rags. And that’s the whole story, according to the local media.

The reporting rightly focuses on the motions themselves, although, interestingly, not all the motions.3 After all, without the motions, the rezonings, the tax incentives, and so on, the projects couldn’t get built. What all of these stories about this Sandstone project lack, though, what most such stories about all such projects are missing, is any sense of where the motions come from, how Council offices and developers collaborate to obtain the myriad permissions required for something like this proposed hotel to get built.4

And that story is amazing, really unexpectedly appalling.5 It’s revealed in astonishing detail by a massive set of emails I recently received from CD1, spanning more than two and a half years of discussions between lobbyists from at least three distinct firms6 repping Eri Kroh and Sandstone, CD1 planning director Gerald Gubatan, and various City of LA staffers in City Planning and elsewhere beginning in August 2017 and continuing to this day.

The lobbyists actually write and revise the motions that Cedillo introduces to further their cause.7 Gubatan works closely with the lobbyists basically in opposition to City civil service staff’s attempts to enforce the City’s laws and rules, and is outright contemptuous of their abilities.8 Cedillo himself stays distant from the process, but in no way detached. He met with the project’s zillionaire developer Eri Kroh and lobbyist Lali DeAztlan in August 2017, two months before the purchase was final. Presumably this is when Cedillo greenlighted the project.

In a post-meeting email to Gerald Gubatan DeAztlan shared her pleasure with the result: ” I think it went well, the Councilmember and the Owner Eri seem to speak the same language, and that gets us off to a great start.” After that Cedillo seems to have been briefed only once9 and otherwise didn’t have to do anything else once he’d set things moving except, of course, to sign the motions.10 The story is complicated and best understood by reading through the records themselves,11 but read on for a moderately detailed outline with link after link after link to the primary sources.
Continue reading Ever Wonder How One Of These Super-Sized Construction Projects Downtown Gets Built? — Here Is An Unprecedented Look Into How City Councilmembers And Developers Work As Partners To Subvert And Sideline Civil Service Staff And Basically Give Away Piece After Irreplaceable Piece Of Our City To Further Their Own Interests — Laid Out Step By Covert And Appalling Step — In The Case — Still Ongoing — Of 1330 W. Pico In CD1 — From Gil Cedillo’s First Meeting In August 2017 With Zillionaire Eri Kroh Of Sandstone Properties — Through Three Distinct Motions — Every Last One Of Which Signed By Cedillo But Written By A Lobbyist — And Sheparded Through City Staff — And Council Committees — And Council — By Cedillo’s Planning Director Gerald Gubatan — Who Insulted And Belittled Any Civil Service Staff Who Dared To Question Any Aspect Of The Project — Through CD1 Assistant Chief Of Staff Tony Ricasa’s Apparent Derailment Of Matt Szabo’s Plan To Use The Building For Homeless Housing — And Much Much More — Including Links To Hundreds Of Emails — And Draft Motions — And So On →

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Business Improvement Districts

The South Park BID Solicited — Or Extorted — Donations Totalling $80,000 From Developers To Pay For Some Studies They Wanted Done — In Return The BID Sent Staffers To City Council Committee Meetings To Give Public Comment In Favor Of The Developers’ Projects — Using Talking Points Supplied By The Developers — Money Well Spent For The Developers I’m Guessing Since Councilmembers Probably Won’t Approve Projects BIDs Oppose — This Is One Way In Which The Illusion Of Community Buy-In Is Created And Maintained In Los Angeles — One Of The Developers Involved Was Lightstone Group — Whose Lobbyists Are Also Being Investigated In Relation To José Huizar — Because Of Course They Are

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Here’s the short version. In 2017 the South Park BID wanted to lobby Metro concerning some transportation issues. To do this they needed some reports prepared by professionals who were going to charge them around $80,000. For whatever reason they didn’t want to pay out of the BID budget, so they hit up local developers for $5,000 contributions. In exchange the BID supported the developers’ various projects before City Council committees and commissions using talking points prepped by the developers to inform their public comments.

First, let’s talk about the two issues the BID was, and is, lobbying for. One is to establish an enhanced infrastructure financing district (EIFD)12 to fund transit improvements in the BID, in particular moving Pico Station underground.13 The BID’s “one pager”14 on the benefits to be gained from the EIFD can be read by clicking here and their presentation on “undergrounding” Pico Station is available here. The other issue has to do with improving connections between various presently disconnected-by-public-transit points Downtown. The BID’s presentation on that can be read here.

And of course before one goes a-lobbying one needs reports! Written by experts! And experts don’t come cheap, but they will provide proposals with estimates of the costs, and here are the two the BID obtained:

And based on these estimates, the South Park BID determined that it needed $80,000 to begin the report-making process. And for whatever reason, they also determined that they were only going to pay $5,000 themselves. The rest, saith the BID, they were going to raise from developers and maybe some other BIDs Downtown. And the story of this whole mess, told, as usual, in excruciating detail via transcriptions of emails, can be found after the break!
Continue reading The South Park BID Solicited — Or Extorted — Donations Totalling $80,000 From Developers To Pay For Some Studies They Wanted Done — In Return The BID Sent Staffers To City Council Committee Meetings To Give Public Comment In Favor Of The Developers’ Projects — Using Talking Points Supplied By The Developers — Money Well Spent For The Developers I’m Guessing Since Councilmembers Probably Won’t Approve Projects BIDs Oppose — This Is One Way In Which The Illusion Of Community Buy-In Is Created And Maintained In Los Angeles — One Of The Developers Involved Was Lightstone Group — Whose Lobbyists Are Also Being Investigated In Relation To José Huizar — Because Of Course They Are →

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