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Party Review: 'Drop Dead CRA Day' at City Hall

Categories: Development

cra dead day.jpg
Out with a bang.
Today is a very special day.

Today is the day that all 400 redevelopment agencies (RDAs) across California -- including the massive L.A. Community Redevelopment Agency (CRA) -- are shut down for good. And all the property taxes they've been raking in, for buildings within areas they've declared "blighted," will now go directly to the state for essential costs like education and emergency services.

Woot woot! This calls for a little celebration. Leave it to oddball Los Angeles citywatchers John Walsh and Miki Jackson, of HollywoodHighlands.org, to host a bona fide funeral party (emphasis on the party) for the CRA ...

... down at City Hall. Under the same roof, if you'll recall, that has sheltered decades of shady dealings between the CRA, City Council politicians and fat-cat developers who came sniffing for handouts. (No such thing as too rich!)

"Drop Dead CRA Day" was a bittersweet affair.

cra dead sign.jpg
The CRA "always hands out the Jim Jones Kool-Aid to everybody, telling them how everything was going great," says Jackson, left.
Walsh paired a dollar-bill tie with his signature plaid suit jacket to mark the occasion. Jackson, apparently an arts-and-crafts queen, fashioned the CRA a terrific tombstone -- plastered in skeleton hands and more dollar bills.

Although public commenters expressed relief that the CRA could do no more harm, they were visibly pained to recall horror stories of land grabs past.

"We had a vibrant community... not a blighted slum," remembered Gordon Pattison, a former Bunker Hill resident, of his long-ago neighborhood, before the CRA wiped it out and installed a business district. "Nine thousand people were displaced at the time."

Valerie Stewart, surviving daughter of actor Nick Stewart, stepped to the podium to remember her parents' historic Ebony Showcase Theater, once a groundbreaking outpost for black theater -- until the CRA seized it in the '90s through "eminent domain," one of their most notorious practices.

Recent City Council candidate Candice Graham backed her up on that one: "Dealing with the CRA actually killed him," she said of Stewart's famous father.

Thanks to Governor Jerry Brown, though, the worst is behind us. Partytime!

But don't forget, this is City Hall we're partying at here. Meaning the public-comment-period festivities were precluded by an hour-long ceremony to designate February 1 as Rob Dyrdek Day, in exchange for the seven skate parks that said Rob Dyrdek has constructed throughout Los Angeles. Every single councilmember was given time to stand up, praise Dyrdek and spew junk statistics on the city's dropping crime rate. (And, in Venice politician Bill Rosendahl's case, brag about how much more skaterific his district is than everyone else's.)

Then, once the spotlight was finally turned on the CRA death folks, two cops from the City Council's paranoid security outfit told Walsh and Jackson that they weren't allowed to wave around their sign while yelling at councilmembers. Or even hold the sign in council chambers at all, even inside a plastic bag.

One guard also started interrogating Jackson about what was in the Kool-Aid pitcher. (Seriously.)

carmen trutanich cra day.jpg
City attorney tries to make up for an embarrassing First Amendment violation moments earlier.
So the focus turned from the CRA to an even more popular topic at L.A. City Hall: the First Amendment. Jackson dropped some constitutional truth bombs on the council about her right to hold up the tombstone thingy -- so true, in fact, that [an underling for] L.A. City Attorney Carmen Trutanich jumped from his chair five minutes later, chased her and Walsh out into the hall (see right) and nervously invited them to come show the City Council their sign.

So they did. And it was beautiful.

cra death day final hoorah.jpg
Update: From here, the CRA's unfinished business and construction projects will be handled by a three-member successor agency and an oversight board. Governor Brown just appointed L.A.'s three agency members today: lawyer and lobbyist Timothy McOsker, rich developer dude Nelson Rising and professional consultant Mee Semcken.

We were initially unsure how the CRA would be held accountable for all its assets, seeing as it had stealthily transferred its $1 billion to City Council coffers when it got wind of Brown's big murder plot. But the smooth creation of this successor agency suggests that the state will get that money back. (The governor's spokesman has been contacted for more info.)

Brown's CRA replacement team will be tasked with "unwinding the redevelopment agency's hundreds of millions of dollars in assets, complex land deals, employee obligations and development loans," reports the LA Times.

Sounds like quite the afterparty.

[@simone_electra / swilson@laweekly.com / @LAWeeklyNews]

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Valarie
Valarie

I am Valarie Stewart, daughterof Nick and Edna Stewart.  Rather thanbeing a simple eminent domain case, the CRA’s taking of the buildings thatcomprised our Ebony Showcase complex is a clear case of a lack of oversight, ofmanipulation and insider deals; what is most important it shows how the CRAreally operated behind closed doors.  

 

My parents lost title to (butnot possession of) the Ebony Showcase Theatre complex aftercompleting an expensive first phase of city-mandated "Division88" earthquake compliance (Code enforcement) BEFORE THE 1994 EARTHQUAKE,that forced them into a chapter 11 bankruptcy which was dismissed by thejudge after we could not get bankruptcy-required insurance becausethere was a moratorium on property insurance policies right after the Civilunrest.   I have a city council tape recording of thefollowing:  After my parents lost title to the theater in the early 1990s,the mortgage company at a REAP hearing told the City Council that theywanted to give the ownership of the theater complex back to my parents. Councilwoman Rita Walters said that Division 88 was a law that applied toeveryone but the city (the city, itself, could not afford to earthquake-proofCity Hall).  The city council voted to find money from the CRA forgrants to our business and others who had to do the earthquake-proofing oftheir buildings.  Rather than seek help as mentioned above, our CityCouncilman, Nate Holden, later wrote a letter to my parents that said he would buythe property and "take their legacy."

 

After the 1994 earthquake,minutes of CRA meetings with Nate’s staff show that Nate Holden was told by anemployee of Riorden to form a NEW non profit corporation  to apply forearthquake disaster grant money meant for small businesses.  Afterthe Korean Theater Festival was held at our theater, Nate told his friends thatour Korean clients were trying to buy the property and persuaded his friends toform new non profit organization.  Their new non profit which had anoffice in Century City was called "Ebony Showcase Cultural Center."  According to City Council files,Nate made a contribution of computers to "his" EbonyShowcase non profit.  Nate was later quoted in 2 newspapers as sayingthat he could not give the real Ebony Showcase any money because "it wouldbe a gift of public funds."  Nate's new non profit remained asecret. 

 

Countless documents weredoctored by CRA employees.   There existphotos of perpendicular cuts in wood that are purported to be a roof cave-incaused by 1994 earthquake damage (and tornado damage) years after theNorthridge earthquake.  Our complex wasgreen-tagged (deemed safe to occupy) after the earthquake but the CRA hired aninsider to create a false  report thatclaimed that the entire complex was badly earthquake damaged.so that the CRAcould get disaster money for themselves -  

http://www.crala.lacity.org/re...

 

 We fought hard to try tosave our buildings and the CRA used nearly every trick in the book againstus.  We even went to a state recovery office for help.  The director theresaid he would help us; but later told us not to return because he had beentold  by government officials to turn us away. 

 

Once the CRA got ownership ofthe property they built a CRA-owned theater there and named it the Nate Holden Performing arts Center after using our name “Ebony Showcase” to get HUD blockgrant money, meant for small businesses, for themselves.  . They later formed a 3rd non profit with a namesimilar to ours so the public still calls their CRA-owned theater "theEbony." The CRA used my parents' names (without permission) in theirrental agreement and in their propaganda.

 http://www.ebonyrep.org/downlo...

 

The  above information is just the tip of theproverbial iceberg.

 

The real Ebony Showcase Theateris a 501(c)3 non profit organization for the entire community, never  just for African Americans.  Contributions are needed to continue myparent’s true legacy.

 

  

 

 

Rick Abrams
Rick Abrams

Way, way back in 1915, the City of LA produced a Traffic Study, and at that time, it warned us about greedy landowners who would oppose the natural topography and human nature to spread out Los Angeles' famed residential neighborhoods interspersed with appropriate commercial and manufacturing.  In 1915 the City said,

"No municipality is justified in adopting a policy which would tend to retard the removal of business centers to their natural geographical location. Such a policy would be nothing less than a deliberate exploitation of civic resources for the benefit of the limited number of property owners enjoying abnormal incomes from rental privileges; and at best, could only serve as a palliative, since the final location of the business center of any growing city is regulated entirely by its topography and is altogether beyond individual or corporate control."

Yet, the CRA/LA and its latest Champion, trust fund baby and mayor wannabe Garcetti, were those Exploiters who concentrated traffic congestion first in Bunker Hill and then in Hollywood, bringing upon Los Angeles its nightmare traffic, its horrible air quality, its decaying infrastructure.  In regard to Hollywood where the CRA/Garcetti gang have been romping around for the last decade, we have an exodus of population.  Hollywood has 26,000 fewer people than projected thanks to the harmful actions of the CRA and Garcetti.

Los Angeles' woeful condition did not just happen; it was systematically created by people like Garcetti who thinks Miki Jackson doesn't have First Amendment rights.  If these Exploiters of civic resources had listened to Miki Jackson a ten years ago, LA in general and Hollywood in particular would not be such a mess.

KateB
KateB

Let's not forget the vibrant neighborhood of Chavez Ravine which was destroyed for "public housing" which turned into Dodger Stadium.

James_McCuen
James_McCuen

The truth about Downtown LA's skyline is the bulldozing of Victorian homes and historical buildings. A better use of funds would have been to help existing owners restore existing structures.

Gordon Pattison pointed out the irony of destroying residential neighborhoods to establish commerical office buildings and then later converting abandoned commercial office buidings to residential (eg. Tom Gilmore).

The other reality is that Property Tax diversion (tax increment) should never be used as Redevelopment agencies across the state have used them. Just study the reports by State Controller John Chiang and his predecessors - Precious tax dollars were used to enrich politically connected developers in some jurisdications and in other areas make up for local municipalities who couldn't control their own budgets by augmenting work normally covered by the general fund. The numbers are factual, not feel good PR releases from those with financial conflicts of interest.

Now we see what a true financial turkey Redevelopment really is when the City of LA wouldn't dare take on the debt and liabilities of the State's largest Redevelopment Agency, CRA-LA. Finally, be carefull when a politician speaks of "blight." Just look up the HUD Section 108 loan guarantee program which is supposed to be used for "Slum Clearance." A classic example is the $30 million HUD loan used for the "new" Kodak Theater in the $625 million Hollywood and Highland complex - a gift and bailout for CIM Group. The real blighted property was at the Northwest end of Hollywood and Western - That was a more appropriate use for HUD Section 108.

Rick Abrams
Rick Abrams

Northwest Hollywood Western:  Yes and No.  In 2005, when CIM wanted to construct a CRA project, CRA's John McCoy admitted that 7 properties north of the intersection on Western were not part of the CRA/LA because they were NOT blighted.  Now, that is quite something -- the CRA admitted that properties that a developer coveted were NOT blighted!!!

Through the use of false claims of LAUSD eminent domain, CIM Group bought up these properties. Then one mysteriously burned down and the others were closed up -- but still provided easy access to drug dealers and whores -- a subject about which we suspect CIM Group knows a lot.  The resulting crime wave was so horrendous that the city, with CIM's urging, condemned the CIM properties.  After these non-blighted properties had been condemned, CRA/LA agreed to pay CIM $17.3 M. 

To further deteriorate the corner, CIM Group then evicted all the low income tenants from the St Franics Hotel.

What needs to be done:

(1) The CRA trustees need to claw back the $17.3 Million from CIM Group;

(2) Criminal investigations need to be conducted into the frauds which have been perpetrated upon the public by both the CRA and CIM Group.

It is great that LA Weekly has resumed its leadership role to rid Los Angeles of corruption.

Kim Cooper
Kim Cooper

Thanks for the photos and coverage of this momentous occasion. The former Bunker Hill resident quoted above is Gordon Pattison, whose family owned the last two Victorians left standing on Bunker Hill, the Salt Box and the Castle. The CRA seized both, with false claims that the neighborhood was a slum. Gordon said today that he was speaking to Council on behalf of the wonderful old people he knew as a child growing up on Bunker Hill, whose community was scattered and defamed.

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