Articles Posted in City of LA

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By Matthew Hinks
The Ninth Circuit has issued a new “chapter in ‘the story of billboards.'” Billboard companies and advertisers should take note of the court’s opinion. Although the opinion refused to extend full First Amendment protection to billboards and advertising related to underlying expressive works, the court — recognizing its central role in defining the contours of Constitutional liberties — rejected the trial court’s reasoning that a municipality should be afforded deference to define the divide between commercial and noncommercial speech.
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News Release

LOS ANGELES — On August 23, 2012, a Los Angeles Superior Court judge ruled that the residential project proposed in the Benedict Canyon area by Saudi prince Abdul-Aziz ibn Abdul-Aziz al Saud, the Deputy Foreign Minister of Saudi Arabia, had been illegally subjected by the City of Los Angeles to rules that are not applicable to the project. [Tower Lane Properties, Inc. v. City of Los Angeles, Los Angeles Superior Court case no. BS137339.]

The rule at issue is City Building Code sec. 91.7006.8.2 which requires projects that are subject to subdivision to apply for a tentative tract map prior to grading on sites greater than 60,000 square feet. The city and certain neighbors argued that this provision is applicable to the Saudi prince’s project even though no subdivision was proposed or contemplated. Hence, they argued the project requires a discretionary review and public hearings.

The court found that the code section is not applicable to the project and ordered the city not to apply this provision to the project. The proposed project consists of three single family homes on three separate legal lots on Tower Lane.

Martha and Bruce Karsh, who own a large estate property next door, elected to intervene in the lawsuit. The Karsh’s legal arguments regarding the applicability of this code section were also rejected by the court. In papers filed with the court, Tower Lane Properties submitted evidence of city records showing that Martha and Bruce Karsh had pulled numerous grading and building permits for their own property between 2003 to 2010 in order to construct a recreational building, a guest house, a conservatory with basement, and other improvements, and not once did the City subject them to the very same ordinance they argued Tower Lane Properties must adhere to, even though their property is also greater than 60,000 square feet. Tower Lane Properties produced evidence that the city had never before applied this ordinance to an applicant proposing a single family home on a single legal lot.

Martha and Bruce Karsh have been leading opponents of the project who have waged a campaign-style attack against the project and Prince Abdul-Aziz. The City of Los Angeles Ethics Commission website shows that Martha and Bruce Karsh had also hired a team of lobbyists to influence the city processing of this project. Bruce Karsh is one of the co-founders of Oaktree Capital, an international investment and management firm and, according to the Los Angeles Times, the largest creditor of Tribune Co. which owns the Los Angeles Times.

“Our client designed a project to comply with all the zoning and building code regulations, but in response to outside pressures the city devised new interpretations intended to force our client into a lengthy and unnecessary analysis of non-existent issues. This is a residential project which is completely consistent with neighboring properties and will be constructed in compliance with building and grading regulations. Yesterday’s detailed and well- reasoned court ruling vindicates our client’s position that the City tried to apply its rules in a discriminatory manner,” said Benjamin M. Reznik, land use attorney for the Saudi prince. “It is most unfortunate that our client has been vilified by certain members of the community for doing nothing more than insisting that the laws of our city be applied to him fairly in the same manner as they are applied to other homeowners.”

Click here to review the court’s tentative decision, which became final after the hearing of August 23, 2012.

Contact
Benjamin M. Reznik Jeffer Mangels Butler & Mitchell LLP 1900 Avenue of the Stars, Los Angeles CA 90067 BMR@jmbm.com 310.201.3572

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Ben Reznik
In an attempt to appease a well-heeled group of neighbors in Benedict Canyon who want to stop one particular project, the City of Los Angeles has adopted a new interpretation of its municipal code which will result in more than $1 billion worth of construction being delayed into 2013. This equates to the loss of several thousand jobs this year.

For the particulars, read my op-ed column from this week’s Los Angeles Business Journal, reprinted with permission below.
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Ben Reznik
Why is the City of Los Angeles singling out the Deputy Foreign Minister of Saudi Arabia and forcing him to follow procedures never before imposed on others in order to allow him to build his home in the Benedict Canyon neighborhood of Los Angeles?

That’s a question being raised following the recent Vanity Fair article written by Michael Shnayerson, There Goes the Neighborhood, about my client Prince Abdulaziz bin Abdullah bin Abdulaziz al-Saud, the current Deputy Foreign Minister of Saudi Arabia.

For some inexplicable reason, the City of Los Angeles Planning Department is erroneously maintaining and insisting that the Prince’s entity developing the project, Tower Lane Properties, Inc., must undergo additional, unnecessary and inapplicable steps in the plan check review process, before the project is cleared for construction. However, other similarly-sized residential projects in Benedict Canyon and nearby neighborhoods were built without being subjected to any such additional review whatsoever. A 35,046 square-foot home on North Carolwood Drive, a 45,891 square-foot home on Bel Air Road, and a 52,503 square-foot home on S. Mapleton Drive, to name a few, were all built without the City of Los Angeles subjecting them to this procedure. It’s not even the largest residential project in the area. [SOURCE: City of Los Angeles Department of City Planning, Los Angeles County Assessor’s Office]
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Ben Reznik
Vanity Fair reporter Michael Shnayerson recently visited the Los Angeles hillside neighborhood of Benedict Canyon to report on a proposed residential project by JMBM client Prince Abdulaziz bin Abdullah bin Abdulaziz al-Saud, Deputy Foreign Minister of Saudi Arabia. Shnayerson’s article, There Goes the Neighborhood, includes interviews with some of the property’s high profile neighbors and sheds light on what is really driving the opposition.

Tower Lane Properties, Inc., the prince’s entity seeking to build the project, has reached out to the surrounding community, heard the community’s issues and concerns, and has come forward with new, revised plans that reduce the project’s size and significantly reduce project-related truck traffic. Tower Lane Properties, Inc. is committed to maintaining an open and ongoing dialogue with area neighbors to ensure that this residential development on private property can move forward.
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Ben Reznik
From Robert Stein, President Gambol Industries, Inc.

For more than three years, JMBM’s client, Gambol Industries, Inc. has been negotiating with the Port of Los Angeles to develop a ship repair and ship building facility in an unused portion of the port. Gambol proposes to invest approximately $75 million in private capital, which will create more than 1,000 direct and indirect jobs. The Port of Los Angeles however, continues to resist Gambol’s efforts, prompting the company’s president, Robert Stein, to circulate an open letter to members of the Los Angeles City Council. The following is an edited version of his letter:

We thought we had a good idea three years ago when we proposed re-opening the historical former Southwest Marine (SWM), site for use as a ship building and repair yard. The site has been a shipyard since the 1920s, but in recent years, has been unused and in decay. Believe it or not, neither the ports of Los Angeles nor Long Beach currently house such a facility. This necessitates those needing these services to sail down to San Diego or up to San Francisco. This is unacceptable for the nation’s largest port complex!

For reasons best known to its staff, the Port of Los Angeles continues to resist our efforts. Initially their reasoning related to the Main Channel Deepening Project (MCDP) which the port is undertaking with the assistance of the Army Corp of Engineers. They claim they need the Southwest Marine facility to store the dredged materials which they want to relocate behind a rock dike to be installed across the face of the SMW site. Once this process is undertaken it will preclude the ability to develop a world class ship building and repair facility in San Pedro Bay.
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Ben Reznik
In the City of Los Angeles we have seven Area Planning Commissions (known as “APCs”), each consisting of five volunteer members appointed by the Mayor and covering a distinct geographical part of the city. These APC commissioners need not and, in fact, do not possess any special training, knowledge or experience in land use matters, and certainly are not familiar with the body of land use and zoning laws applicable to many of their decisions. Pursuant to the city charter and zoning code, the APCs are empowered to decide many important cases. In many instances, the decision of the APC is final — meaning there is no further right of appeal to the City Council. The only remedy left is litigation and that, all too often, is too expensive for modest projects. The impact of a negative APC decision can be devastating to an applicant, as it can result in significant financial losses — sometimes millions of dollars. Yet, despite all this, the City of Los Angeles does not provide legal counsel to guide APCs during the hearing and in their deliberations on the merits of a case. Planning Department staff is present at the hearings, but no one from the City Attorney’s Office is present to make sure that the law is followed.
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Sheri Bonstelle
The right to install a supergraphic on a side of a building in Hollywood has been an ongoing struggle between owners and the City for years. The attorneys at JMBM have extensive experience in representing hotel owners and sign companies in obtaining appropriate City Council approval. Call us to see how we can help.

The Los Angeles City Council voted unanimously in September to ban the installation of new “supergraphic” advertising displays in Hollywood, while grandfathering in currently planned signs and allowing for designated “sign districts.”
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Ben Reznik
Christine Essel, the newly appointed Chief Executive Officer (CEO) of the Los Angeles Community Redevelopment Agency (CRA/LA), was the featured speaker at a recent JMBM “Business Issues Forum” hosted by Ben Reznik. Ms. Essel has taken command of an agency whose governing board she chaired in the 1990s. She brings with her 30 years experience in planning and development as senior vice president at Paramount Studios where she also served as the senior vice president of Government and Community Affairs. The following is a brief summary of Ms. Essel’s remarks:

As I see it, the challenge in this new assignment is to root out dysfunctionality in an agency which is viewed as being unfriendly. It appears to be a good time to undertake this process, because we’re seeing limited development in our spheres of influence which provides an opportunity to evaluate our role. We are dealing with a “good news/ bad news” scenario. The good news is CRA/LA still has $700 million in the bank! The bad news is that with most development on hold, our revenue stream — which relies on tax increment financing — has been significantly curtailed. Additionally, the State is taking $85 million from our budget this year. We are also in the process of reducing our 261 member staff through early retirement. We expect 40 senior staff to be leaving by January 1, 2011.
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