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The Palladium, the Money, and the Myths

LA WATCHDOG

LA WATCHDOG--At its December 10 meeting, the Garcetti appointed City Planning Commission unanimously approved the “up zoning” of the Palladium Residences (photo: proposed) to allow the development of two thirty story towers that will house 731 luxury rental apartments.  The doubling of this project’s density will result in additional profits of at least $50 million for Crescent Heights, the Miami based developer. 

This mixed use development will also include a mere 24,000 square feet of retail space and restaurants and also includes improvements to the 63,000 square foot Palladium, the 1940 Art Deco venue located in the heart of Hollywood, one block east of Sunset and Vine. 

The supporters of this $500 million project claim that it will help alleviate the City’s housing crisis.  But the rents in these luxury apartments are not affordable unless you are making north of $100,000 a year.  This is double the City’s median household income of less than $50,000 a year. 

Nor are these apartments family friendly unless there is a household income in excess of $200,000 a year.  

The developer and its bought and paid for supporters in City Hall are touting that 5% of the apartments are being reserved for working class Angelenos who make no more than 120% of the median income. But that will result in a modest decrease in revenues of less than 2%, or $600,000 a year, a small price to pay for at least $50 million in additional profits.  

To put the 5% set aside in perspective, New York City is demanding that 25% of the units in an up zoned building be reserved for affordable housing. 

The Planning Commission was also impressed that this “elegant density” project was in an area served by the Metro Red Line and numerous bus routes.  But most of the residents in these two luxury high rises will not be schlepping to work on the subway or bus, but rather tooling to their offices in high powered BMWs.  

This will lead to increased gridlock at Sunset and Vine and Hollywood and Vine, two of the most dangerous intersections for pedestrians in the City.  And this does not include the impact of Millennium Hollywood and many of the other projects in the surrounding area that will add thousands of new residents and cars to the already stressed street and freeway infrastructure. 

Real estate speculators and developers and their cronies argue that this “up zoned” project is good for the economy.  While that can be argued, the need for high end apartments is questionable as the City’s Housing and Community Investment Department reported that there is a 12% vacancy rate for apartments built in the last ten years.  Furthermore, there are many other development opportunities in Hollywood and throughout the City that will not destroy our neighborhoods, be less stressful on the infrastructure and public safety, and most importantly, provide affordable housing to thousands of hard working Angelenos. 

The Palladium Residences is just another poster child in a long list of developments where City Hall has sold out to campaign funding real estate speculators and developers who could care less about ordinary Angelenos. 

So it is not surprising that former Mayor Richard Riordan has endorsed the Neighborhood Integrity Initiative that would eliminate “spot zoning” of mega projects if it is approved by the voters in November. 

While a recent poll indicated that 72% of the voters approved of the Initiative, Riordan’s game changing endorsement has put City Hall and Mayor Eric Garcetti on the defensive.  As Riordan said, Garcetti “isn’t doing anything for the poor but helping the rich get richer -- through these zoning deals on land development.”

 

(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and a member of the Greater Wilshire Neighborhood Council.  Humphreville is the publisher of the Recycler Classifieds -- www.recycler.com. He can be reached at:  [email protected])

-cw

 

 

 

CityWatch

Vol 14 Issue 5

Pub: Jan 15, 2016

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