Homeowners Coalition Sees Partial Victory, Partial Defeat, Deep Frustration Over JMB Project

  December 4, 2006

(See letter to the City Re JMB hearing)
(See the presentation provided to the City Council/Jack Weiss)

(Lawsuit) (1st Amended Complaint

Jack Weiss voted to approve the 1,300,000 square foot JMB project last week.  The developers contended, and Jack Weiss agreed, that a project containing 483 condos in a combined 106 stories would create less traffic than the 35,000 square feet of walk-up bank and nightclub currently on the property.

Recognizing that the entitlement process is clearly controlled by big developers and their lobbyists and lawyers, the community had sought a settlement that would have given the community the ability to guide a community benefit fund without political influence.  Unfortunately, despite close to 500 emails from constituents and the requests of almost every homeowners association surrounding Century City, Councilman Weiss claimed the settlement as his own and also reserved all final decision-making power for himself.

If you have comments that you would like sent to Jack Weiss, you can now go to www.TellJackWeiss.Org and enter your comments.  They will be sent to the HOAs and to Jack Weiss and his staff.

 

 Homeowners Coalition Declares Partial Victory, Partial Defeat, Deep Frustration

 

By now you may have received Jack Weiss’ email co-opting the community benefit fund which was actually conceived of and negotiated by the Westside coalition of homeowners associations.  The full description of the coalition plan can be found at TellJackWeiss.Org.  Jack Weiss’ email read:

 

Following discussions with community representatives, I am proud to announce that yesterday I secured a 5 million voluntary contribution from the developer of 10131 West Constellation which will provide funds for regional traffic improvements on the West Side as well as funds for local schools, parks, libraries, firefighters, and police. During a hearing before the Planning and Land Use Management Committee of the City Council, I requested that these funds be voluntarily given by the developer. While the full City Council must still approve this voluntary contribution and the project, I am optimistic that this fund will be approved. I will establish a Community Advisory Board with representatives of neighborhood organizations to advise the City in the disbursement of the funds.

 

The Victory

The HOA coalition had sought millions of dollars from the developer, JMB, to be dedicated to local infrastructure to offset the real impacts of current and past development in Century City.  The plan conceived of by the coalition was adopted - in part.  This plan, which was co-opted by Jack Weiss as his own, was to have created a fund which would generate interest in perpetuity for the community to offset the perpetual impacts of development, including the impacts of the JMB project. 

 

The Differences

There are major differences in the plan as proposed by the coalition and the one accepted by Jack Weiss.

 

Coalition Settlement/Plan

As Accepted By Jack Weiss

5,000,000 all up front

2,500,000 up front, 2,500,000 if and when the developer chooses to build the second tower.  This could delay the second 2,500,000 and its community benefits for years, if it comes at all.

Funding for all like facilities would be equal by definition.  This means that all schools in the target area would receive the same funding.  Under the coalition plan, funding would have been locked in for all facilities.  Equal benefits for all areas is a cornerstone of the coalition plan.

No such guarantee exists.  The council office can fund or not fund any facility at its discretion and in whatever proportions it deems appropriate. 

Funding would not be controlled by politicians who have the temptations of directing funding based on seeking other elective office.

The fund is controlled by the council office/councilmember, currently Jack Weiss.  The council office will be able to “take credit” for each donation despite the fact that the fund was negotiated by the community.

Funding would be directed, within preset limits, by the community outside the bureaucratic/political process.

The community will have “input,” but ultimate decisions on funding stay with the council office.  We fear that this is the same type of “input” we have on development projects, meaning none.

A regional traffic plan was funded, but not mitigations from past projects whose mitigations have run out of money. 

A large percentage of the money will go to fund mitigations that were supposed to be funded by previous projects.  This money will “come off the top” and will impact the fund’s ability to generate as much income for the community.  This means that money from this project will fund mitigations from past projects.  The community is paying twice for the same mitigations.

Funding of facilities is automatic and predictable so that decisions on long-term commitments such as additional staff can be comfortably made.

With all funding at the discretion of the council office, funding is no longer predictable and automatic. 

The coalition plan was fully transparent and had full accountability for how funding was directed and, most importantly, WHY.  With each HOA involved in the decision-making process, the community would have full knowledge of why decisions were made to fund one portion of the infrastructure over another.

The plan crafted by Jack Weiss provides accountability for HOW money is spent, but not WHY it is spent.  Since Jack Weiss’ plan is based on subjective funding goals of the current councilperson and also on his or her political needs, the community will likely never know why funds were spent as they were.

 

The Defeat

 

Despite almost 500 requests from constituents and requests from the leadership of all major HOAs around Century City to support the coalition’s plan, Jack Weiss chose instead to ensure that all power would remain in the council office  thereby denying community the ability to determine how best to improve the infrastructure without political influence.

 

The economic portion of the deal negotiated by Jack Weiss falls short of the settlement negotiated by the coalition in several respects.  Most notable is that the coalition package included 5M up front with all but 250K going to the community benefit fund.  Under the Councilman’s plan, the developer must only contribute 2.5M up front, and the additional 2.5M would be contributed only if  the developer chooses to build the second tower.  This will delay the second 2.5M and its community benefits for years, or even eliminate the 2.5M entirely.  Also, under Weiss’s plan, a significant portion of the 5M will be set aside for traffic mitigations that were supposed to be funded by past development projects.  In simple terms, this means that the community will be “paying twice” for these mitigations.

 

The arrangement accepted by Jack Weiss also falls short of the public accountability, transparency and predictability that the coalition sought.  Because final funding decision power rests exclusively with the council office, the same back-room power plays that have allowed flawed development projects to go forward, without community protections, will now be another tool of the “powers-that-be” in trying to “influence” residents – precisely what the coalition was working to avoid.  Funding for facilities such as schools, which was formulaic under the coalition plan, can now be doled out based on other motivations. 

 

The coalition hopes that the fund will be operated so that each facility gets identical funding as other like facilities.  In this way, we can avoid inter-area concerns over inequitable distribution of the funds.

 

The Frustration

The HOA coalition was also reminded, yet again, that the process of approving large projects in the City is under the complete control and guidance of lawyers and lobbyists.  Political considerations continue to trump community welfare.  Developers continue to have the power to influence and control every organ of City government and have the necessary access to ensure that the City passes projects that should not be approved due to the negative impacts they inflict on residents.  Gridlocked traffic is but one outcome of unbridled overdevelopment on the Westside of Los Angeles. 

 

In this case, the frustration was coupled with disappointment when counsel for JMB decided to disclose confidential settlement communications, correspondence and other confidential material in support of their client.  They also chose to attempt to tarnish the reputation of hardworking community people with whom they have worked for years. 

 

Next Steps

Homeowner groups will almost certainly file a lawsuit challenging the City’s approval of the JMB project on multiple grounds.  Central to any lawsuit would be the outrageous assertion that a combined 106 stories of high-rise residential towers, comprised of 1,300,000 square feet with 483 units creates less traffic than approximately 35,000 square feet of a walk-up bank and nightclub.  (The full presentation presented by the HOA coalition can be found here.

 

With the lawsuit the community will either have a reduced project and proper evaluation of impacts and development rights OR should we lose the suit, some form of the community benefit fund will be in place.  Either way, the community will be better off than it was before.