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.LA initiated coverage with this equally superficial story. A few months later Cedillo moved to give the hotel hefty tax incentives, 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. 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.
And that story is amazing, really unexpectedly appalling. 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 firms 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. 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. 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 once and otherwise didn’t have to do anything else once he’d set things moving except, of course, to sign the motions. The story is complicated and best understood by reading through the records themselves, 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