#  Will ‘The Reef’ Mega-Project Put Longtime South Central Residents on the Street?

     Details    Patrick Range McDonald   ![logo](https://mail.citywatchla.com//templates/ja_teline_v/images/logo.png)         August 15 2016      [  ![](https://mail.citywatchla.com/images/stories/Aug-2016/066a.png)    ](https://mail.citywatchla.com/los-angeles/11647-will-the-reef-mega-project-put-longtime-south-central-residents-on-the-street)

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> DEVELOPERS’ DREAMS-After a six-hour, emotional hearing at LA City Hall on Thursday, the City Planning Commission approved the [billion-dollar mega-project known as “The Reef”](http://2preservela.org/kanon-ventures-execs-shelled-out-369775-curry-favor-la-politicans/) for Historic South-Central, even though scores of local residents testified that the high-end residential development would force them out of their neighborhood and create widespread displacement.
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> “This is [modern ethnic cleansing](http://www.laweekly.com/news/hollywoods-urban-cleansing-2612554),” a young man told the planning commissioners at the packed meeting.
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> Neighborhood activists and working-class residents have long been wary about The Reef, also known as SoLA Village.
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> The [1.6 million-square-foot mega-project](http://la.curbed.com/2016/8/11/12441568/the-reef-south-la-development-planning-commission), pushed by developer Kanon Ventures, is located near the Santa Monica Freeway at 1933 S. Broadway features a 19-story hotel and two luxury housing skyscrapers (32 stories and 35 stories each) with more than 1,000 units. Abandoning its Historic South-Central heritage, Kanon Ventures markets The Reef as a “creative habitat in downtown LA,” an obvious attempt to grab the attention of artists, hipsters and techies.
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> In a [2014 *Los Angeles Times* article](http://www.latimes.com/business/realestate/la-fi-property-report-20140605-story.html), LA City Council member Curren Price, who represents Historic South-Central in District 9, also made clear that the mega-project was part of an expansion of downtown LA, which has been [rapidly gentrifying](http://www.latimes.com/business/realestate/hot-property/la-fi-hp-0507-neighborhood-downtown-20160507-story.html). *“This is a wonderful opportunity to show what the future of downtown is going to be as it migrates southward,”* he told the newspaper.
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> Perhaps most tellingly, Kanon Ventures offered no affordable housing at The Reef, but agreed to contribute $15 million to the Council District 9 Affordable Housing Trust Fund to “facilitate development of affordable housing within CD 9 and towards the purchase of expiring restricted affordable housing covenants,” according to a city document.
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> Each [council member maintains a number of trust funds](http://www.laweekly.com/news/los-angeles-on-300-000-a-year-2158496) that are essentially slush funds, with money often going to the politician’s favorite pet projects and organizations. The slush funds are difficult to track and receive little public oversight.
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> Kanon Ventures and its executives have long been [deep-pocketed players at City Hall.](http://2preservela.org/kanon-ventures-execs-shelled-out-369775-curry-favor-la-politicans/) Between 2001 and 2015, the developer shelled out $12,450 to the campaign war chests of LA politicians, according to the city’s Ethics Commission.
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> In pursuit of building The Reef, the developer poured $357,325 into super-connected lobbying firm Marathon Communications to win over LA pols and city agencies, according to the Ethics Commission. For The Reef, Kanon Ventures operates through a limited liability corporation known as PHR LA Mart.
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> That’s a whopping total of $369,775 — more than 10 times the [median household income](http://maps.latimes.com/neighborhoods/neighborhood/historic-south-central/?q=1933+S+Broadway%2C+Los+Angeles%2C+CA+90007%2C+USA&lat=34.0312448&lng=-118.2665321&g=Geocodify) in Historic South-Central.
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> During Thursday’s meeting, many city planning commissioners, who are appointed by Mayor Eric Garcetti, revealed that they had previously talked with the Mayor’s Office about The Reef -- a sign that in addition to Councilman Price, Garcetti was deeply involved with the mega-project.
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> ![](https://mail.citywatchla.com/images/stories/Aug-2016/066b.png)At the City Hall hearing, where more than 140 people testified, local residents brought up a number of serious concerns with planning commissioners David Ambroz, Renee Dake Wilson, Veronica Padilla, Caroline Choe, Samantha Millman, John Mack, Robert Ahn and Dana Perlman, including:
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> - Local residents can’t afford the market-rate housing at The Reef.
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> - The residential towers are next to the 10 Freeway, the kind of freeway-adjacent housing that [USC and UCLA scientific studies](http://2preservela.org/developers-black-lung-lofts-freeways/) show is dangerous to the health of children, seniors and pregnant women.
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> - Apartment rents around the The Reef will rise and force people out of their homes and cause displacement.
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> - Numerous large billboards at the site will overwhelm the neighborhood.
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> - The developer and City Council member did not properly reach out to the community.
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> The planning commission, however, decided against super-graphic and digital billboards at The Reef, and proposed that the developer offer some affordable housing -- a paltry 50 rental units for low- and moderate-income tenants. The commissioners did approve spot-zoning favors such as a General Plan amendment and zone change.
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> Community activist [Damien Goodmon](http://www.crenshawsubway.org/) of Crenshaw Subway Coalition, who opposed The Reef, said about the City Hall-approved favors that push forward over-sized, luxury development in LA, *“Spot zoning for mega-projects is facilitating gentrification. People who live in these neighborhoods are longtime residents, and they will be pushed out. Who are these projects for?”*
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> It was a question that the planning commissioners never asked developer Kanon Ventures.
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> *(Patrick Range McDonald writes for the* [*Coalition to Preserve LA*](http://2preservela.org/los-angeles-city-hall-ignoring-north-hollywood-residents-concerns-about-controversial-noho-west-mega-project/) *where this piece was first posted.) Edited for CityWatch by Linda Abrams.*

  - [  Previous Article **Felipe Fuentes: Not Such a Long Farewell** ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=11653:filipe-fuentes-not-such-a-long-farewell&catid=312)
- [  Next Article **Why Assemblymember Richard Bloom’s Legislation to Block Criticism of Israel will Fail** ](https://mail.citywatchla.com/index.php?option=com_content&view=article&id=11646:why-assemblymember-richard-bloom-s-legislation-to-block-criticism-of-israel-will-fail&catid=312)
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