Only the United States Government can ‘mint’ money. True enough. But the City of Los Angeles can ‘create’ money too. How? By using its police powers and control over land use to grant special land use entitlements in the form of zoning or other relief from the laws limiting and controlling how land is to be used in this City. These ‘goodies’ go to those who possess the crony contacts, the money, and a willing City Council person (and Mayor) to do their bidding. Their object: To ‘rig’ the system and thereby profit off the backs of the people and their local communities.
These special (and often unlawful) ‘promise for performance’ (bait and switch) deals go under-reported, if they are reported at all. These insider deals are morally corrupt; they undermine the integrity and independence of the Planning Department; and they often due violence to the character and scale of neighborhoods. So the next time you hear a City Attorney candidate say they will fight ‘crime’, you need to ask yourself and the candidate one question: ‘Which type of ‘crime’. . .The traditional ‘street crime’, or the ‘corporate-crony crime’ which is reflected in these constant unlawful land use entitlement giveaways by the City Council and the Mayor?
The insiders, their lobbyists and well-paid lawyers have perfected the routine down to a fine art. The ‘game’ is to purchase or tie-up property (via an option or purchase contract where the closing is contingent on getting the entitlement), then ‘add value’ to the property (‘mint some money’) by applying for and procuring a zoning variance; a zone change along with an amendment to the City’s General Plan; a conditional use permit – or some other change in the nature and scope of how your neighbor can use his or her property. This is done by the speculator’s making whatever promises need to be made to the City in order to procure the desired land use entitlements from the City Council (that’s the promise or ‘bait’); in return for which the City grants the speculator the land use entitlements (the ‘performance’ given in exchange for phony ‘promises’ which everyone knows will either be modified, waived, or never enforced by the City Attorney (that’s the ‘switch’)).
Once in possession of the entitlements, the land use entitlement speculator then ‘flips’ the property to a new buyer and profits from the ‘value added’.
This is what happened at Lincoln Place (38 acres. . . over 700 units in Venice). It took seven years, two Court of Appeal opinions, and a lot of persistence and collective effort between me and the other attorneys representing the tenants to turn things around for them. Initially, a land use entitlement speculator, Robert Bisno, promised the City that if he got the entitlements to tear down and build luxury condos on the 38 acre Lincoln Place site, he would not involuntary evict any of the hundreds of tenants (who included seniors, disabled individuals, families, all middle-class or lower middle class). He also promised to build 140 units of ‘affordable’ housing. The City Council accepted this voluntary promise and gave Mr. Bisno his entitlements. He then ‘flipped’ the property and profited handsomely. Meanwhile, when it came to enforcing the ‘no eviction’ promise, the City Attorney (Rocky Delgadillo) refused. The Mayor also did nothing. Involuntary evictions commenced in 2005. In December, 2007, tenants were involuntary displaced from their homes in one of the largest mass evictions in LA history.
Flash forward seven years. As a result of my efforts and those of other dedicated attorneys working on behalf of the tenants, tenants are back in possession of 65 rehabilitated units, paying rent at March, 2005 rates (plus the allowable rent control increases),and received a cash payment in settlement of their claims. Those tenants who participated in our litigation who chose not to return also received cash compensation. All tenants had their involuntary evictions reversed and vacated. All of this needless misery and expense could have been avoided if the City Attorney (Mr. Delgadillo) had enforced Mr. Bisno’s voluntary promises; promises on which the City relied in giving him valuable land use entitlements.
Despite this history, the current City Attorney (Mr. Trutanich) refuses to follow two reported Court of Appeal decisions in the Lincoln Place litigation which held that ‘voluntary’ land use entitlement conditions (the ‘bait’ used by land use entitlement speculators) are, in fact, fully enforceable. If a Lincoln Place situation occurred today, under Mr. Trutanich’s policies, the same thing would happen again. This must change
If elected City Attorney, my first act will be to reverse the Delgadillo-Trutanich policy, and declare all voluntary conditions (promises made by these land use entitlement speculators to induce the City Council to grant them the land use entitlements they seek) will be fully enforceable. This will send a message to these well-connected City Hall (crony) insiders that their ability to ‘game’ and ‘rig’ the system is over; that City Council members will not longer be able to reward their friends and campaign contributors with special (unlawful) favors at the expense of the rest of us. What happened at Lincoln Place should never happen again. . . ever! This will put an end to ‘bait and switch’ tactics.
Two other core changes I would institute to promote openness and transparency will be detailed in subsequent City Watch articles. These policies are intended to promote openness and transparency in the office so the people can come to understand and appreciate what their political leaders and doing, and why.
Only the City Attorney can provide a ‘check and balance’ on the excesses of the City Council and the Mayor. The beginning of the end of ‘cronyism’ at City Hall begins with the Office of the City Attorney. To date, the Office’s potential has been underutilized. That needs to change and it will change if I am elected because. . .
Enough is Enough!
(Noel Weiss is Candidate for City Attorney. www.PowerOverPoliticians.com
CityWatch
Vol 11 Issue 6
Pub: Jan 16, 2013