RUSS REPORT - The conversions to Buildings 4 and 5 at the Sepulveda Veterans Administration will proceed with construction beginning in January despite huge opposition to the project and contrary to the no-bid leases that say the project is to be completed by December 2011 (48 months from the signing of the lease), rather than beginning construction in January 2012.
On November 8, Congressman Brad Sherman and Los Angeles Councilman Mitch Englander’s staff met with members of the Veterans Administration (VA) for updates on the conversions of buildings 4 and 5 at the Sepulveda VA scheduled to “break ground” in January. Neither Sherman nor Englander has responded to requests for comments regarding this meeting.
An estimated four million residents, Neighborhood Councils, Veteran Service Organizations (VSO) and Civic organizations have expressed their support for having the VA restore the property at the Sepulveda VA back to a full service Hospital to accommodate the medical needs of veterans and returning veterans from Iraq and Afghanistan, and to rescind the Enhanced Use Leases (EUL) signed with New Directions Sepulveda I and II LP (ND) and A Community of Friends (ACOF) in December 2007.
The hospital, built in 1955, was damaged by the 1994 earthquake and demolished in 1998. Buildings 4 and 5 were the Spinal Cord Unit and the Psychiatric Unit and in 1998 were leased to the Film Industry for filming.
Congressman Brad Sherman has supported this project for the past eight years as expressed in February 10, 2006 letter to ND and ACOF, “I am personally impressed with what ND and ACOF are doing and are planning to do for our troubled veterans and will do whatever I can to convince federal agencies to provide funding.”
Even HR 1642 sponsored in May 2007 by Sherman was consistent with his approval of the building conversions, and sought a guarantee that the buildings would house veterans only. The Bill passed the House and was received in the Senate, and referred to the Committee on Veterans' Affairs.
Sherman dropped the ball because the Bill never became law. Critics suggest that had this Bill passed, ND might not have been eligible for funding from HUD Section 8 housing, knocking them out of, potentially, millions of dollars. Sherman was, however, opposed to the no- bid lease that gave ND a 75-year lease to over 7 acres of land at no cost.
The VA violated its own 2008 Asset Management Plan (AMP) that called for local government and community involvement and this sentiment was echoed throughout the Enhanced Use Lease (EUL) in such a way, they say that “will address any concerns early in the planning and development process.”
With construction set to begin in January, a scant two months away, the time for community input, “early in the process”, has long since gone.
Community members are outraged that the project has proceeded without any “outreach” within the Community as stated by the VA.
In 2010, Sherman, only in the midst of heated community opposition, appeared to do a complete ‘flip-flop’ on the project with a letter to Secretary of Veterans Affairs, General Eric Shinseki. Sherman wrote, “I remain opposed to the project and request that the VA cancel the lease with ND and ACOF. I believe the property should be used to provide expanded health care for the veterans in the San Fernando Valley and throughout northern Los Angeles County.”
To placate the mounting opposition, Sherman also requested VA assurances that they would cease telling his constituents in the San Fernando Valley that he gave his approval to the project.
Mark Reed, Congressional Candidate for the West San Fernando Valley and brother of four Vietnam combat veterans, has long been a supporter of veterans. Reed has fought with the masses to rebuild a much needed hospital for veterans at the Sepulveda property. According to Reed, “This lease violates that contract we have with our Veterans and their families. Congressman Sherman misrepresented our Veterans and local residents by stating without their knowledge that they strongly supported the project at the Veterans Advisory Committee on Feb. 14, 2007.
“Sherman also supported the lease without the knowledge or support of our Veterans or local residents. This lease should have never been supported by Sherman without our Veterans support.
“This is a perfect example of failed Congressional leadership in the West San Fernando Valley for our Veterans and the families of our Veterans.”
Larry Van Kuran, Spokesperson- Los Angeles County Council, American Legion said, months ago, “As far as can be determined, there has been absolutely no discussion or contact made with any of the major VSO’s or with local community leaders regarding this possible resumption of efforts. This is in direct conflict with stipulations in Title 38 USC, and with the VA's own Asset Management Plan, both calling for close communication and coordination with VSOs and the local community.”
In 2005, ND estimated the cost of the conversions at about $25 million dollars and now, in 2011, according to the Developer’s figures, costs for the adaptive reuse of buildings 4 and 5 into 147 apartments, thus far, exceeds $62 Million dollars. The cost breakdown for each 250 sq. ft. studio apartment is over $440,655.00 in existing medical buildings of which ND will collect $435.00 per month in rent. Each building will have a manager’s apartment of 540 sq ft as well.
ND and ACOF are poised to receive VA and HUD Section 8 Project-based Vouchers (100%), annual tax credits of nearly $2.2 million dollars, potential grant money from the state, potential energy credits and 90% of filming revenues which were estimated in 2005 by Theresa Castillo, Public Affairs Specialist Asset Management- Filming and Land Use, to Ralph Tillman, Director GLA Asset Management to be $17,280,475.00 which excludes $5,452,284.00 in potential donations over the following five year period.
A 2004 Memorandum of Understanding (MOU) between New Directions and the Greater Los Angeles Healthcare System (GLA) clearly indicates that the State of California through the Multifamily Housing Program-Supportive Housing Program (SHP) component will amortize the cost of rehabilitating Building 4 and 5.
The Approved Developer Fee for ND is $2.4 Million dollars.
Peggy Burgess, long time Veteran activist, said, “This project is a sham perpetrated by a corrupt VA Administration in collusion with ND and ACOF and condoned by a corrupt Administration and Congress!
“These apartments will NOT be rented to homeless or disabled Veterans- homeless veterans cannot pass eligibility requirements. They are homeless because they have no money, cannot afford to pay rent and substance abusers are NOT ‘disabled’.
“This is unconscionable and unacceptable by any standards. Seventy five 3-bedroom houses could be built for less than $31 Million it will take to convert just one of the two buildings.”
Calls to ND were referred to the Public Affairs Dept at the VA and a website that touted a Q&A fact sheet from ND with no details of the project. (Link) Wileen Hernandez, Public Affairs spokesperson for the VA, offered the VA’s Q&A fact sheet dated November 10, 2011 that gave no more than promises and suppositions about the project.
Hernandez said, “The VA recently learned that this project was actually going forward in early 2012.
There will be a couple meetings for the Community and VSO’s but no dates have been set. The units will be fully furnished, counseling, case management and 24/7 security there as well. All of this is built into the cost of each apartment.”
On November 17, the VA, in conjunction with ND and ACOF, gave a 30-minute presentation to the North Hills West Neighborhood Council (NHWNC) on the status of Veteran’s housing project at Sepulveda VA Facility but the NHWNC mislabeled the Agenda on their website to reflect “October 2011 General Board Meeting Agenda” leaving many interested parties to believe the meeting had already passed.
There was no notice by the VA to anyone in the community regarding this presentation.
The phone number on the NHWNC agenda has been disconnected leaving no way to verify attendance of any dignitaries at the meeting.
INFO: For those who wish to make statements with regard to the adaptive reuse of Buildings 4 and 5 at the Sepulveda VA, please contact your Congressmen at: www.house.gov and Senators at: www.senate.gov or write to VA Secretary, General Eric Shinseki [email protected] and tell them how you feel.
(Katharine Russ is an investigative reporter. She is a regular contributor to CityWatch and to the North Valley Reporter. Katharine Russ can be reached at: [email protected] ) –cw
Tags: vets, Veterans Administration, Brad Sherman, Mark Reed, Mitch Englander, New Directions, Veterans Affairs, VA, Sepulveda Veterans Administration
CityWatch
Vol 9 Issue 97
Pub: Dec 6, 2011