The Elephant Hill Deal: A Win-Win or Something Suspicious?
Written by Chelsea Cody   
Wednesday, 04 November 2009 01:27
Elephant HillNow that the Los Angeles City Council has wiggled its way out of a long running lawsuit by shelling out $9 million to purchase the site of a 24-home subdivision in El Sereno to use as park land, there are some Angelinos wondering whether or not this was really a victory for environmental justice or something more insidious.

The report in the L.A. Times lays out the backstory:
 
The developers of the property, Monterey Hills Investors, sued the city last year after the council demanded a new environmental review of the project, planned for a site known as Elephant Hill.

Councilman Jose Huizar said the city would borrow money in the short term to pay for the 19-acre site. Over the long term, he said, the city will seek state funding to help defray the cost.

"This is an environmental justice victory because proper environmental review was not conducted" on the planned subdivision, said Huizar, whose district includes El Sereno.

A Los Angeles County Superior Court judge had a different view, ruling in January that the council had no authority to order Monterey Hills Investors to perform a new environmental impact report on the project.

In the wake of that ruling, attorney Ben Reznik, a City Hall lobbyist who represents the developer, vowed to seek damages of at least $8 million, saying the city's actions postponed completion of his client's project until after the collapse of the region's real estate market.
...
As he prepared for the damages phase of the case, Reznik gave notice that his client intended to depose Huizar, Councilman Ed Reyes and possibly employees in the mayor's office, according to a report obtained by The Times.

The Elephant Hill project has been debated for years. But the fight reached a critical stage two years ago when the council voted to block the city Department of Building and Safety from issuing a permit that would allow the developer to grade the site.

The city attorney's office sided with Reznik, warning council members that they lacked the power to seek more review. But Huizar sided with neighborhood activists and the Natural Resources Defense Council, an environmental group that argued El Sereno needs more undeveloped hillside space.

On Aug. 12, the council instructed the city's lawyers to negotiate a purchase of the site. Although the developer was attempting to build on roughly 14 acres, the council agreed to buy an additional five acres that were not part of the original project.


The Mayor Sam Blog has asked some interesting questions in the wake of the Times story:

Environmental justice victory or suspicious dealings?

Can you see the political rats running for cover? Smell the onerous stench of political deceit?
 
Not too long in the past, El Sereno and CD 14 activists can remember an certain "CD 14 public official" who was heard telling the concern Elephant Hills activists that he thought that losing this lawsuit was possible, but moving forward was the "right" course of action. That when the cost of the 14 acre parcel was around $6,000,000 dollars.
 
But was doing the right thing the only consideration for Huizar? Consider these facts.
 
Reznik, who has held campaign fundraisers for Huizar and other city elected officials, had no comment on today's vote, saying the settlement had not been finalized. As he prepared for the damages phase of the case, Reznik gave notice that his client intended to depose Huizar, Councilman Ed Reyes and possibly employees in the mayor's office, according to a report obtained by The Times.
 
Hmmm, maybe the likes of Huizar and Reyes with the possible Mayor Villaraigosa's staffers in the mix, use the city treasury to "cry uncle" or was this part of an grand charade to improve the profit margin on devalue property, to help a political donor?
 
This deal reminds me of a microscopic version of the failed "Las Lomas Project". Replace Dan Palmer with Ben Reznik, Councilman Richard Alarcon with Councilman Huizar and David Hernandez with Elva Yanez. But sadly, there is no local version of Councilman Greig Smith to cry foul over this blantant misuse of public dollars. Then I seem to remember that the likes of Councilman Reyes and Huizar were supporters of the Las Lomas Project, as this passage reminds us.
 
"Our city attorney has said that if we fail to move forward, he believes we are in great jeopardy of being sued," said Councilman Richard Alarcon, whose San Fernando Valley district borders the Las Lomas site.
 
Alarcon voted to keep the project alive, along with council members Ed Reyes, Jose Huizar, Herb Wesson and Bernard C. Parks.
 
Strange how Alarcon, in his support of the Las Lomas Project, sounds so much like Councilman Huizar in his support of the Elephant Hill settlement.
 
Then there is this simple fact for CD 14 open space advocates to ponder. With the $9,000,000 dollars that Huizar is proposing to give his campaign contributors for the Elephant Hill acreage, you could have an completed Ascot Hills Passive Park and Hazard Park Wetlands Restoration, with money left over for some of the Elephant Hills property.
 
Read the blog post in full, here.

Then of course we have Councilmember Jose Huizar's take on Elephant Hill, a far rosier picture - Here is the press release:

Councilmember Huizar Wins Council Support to Acquire Elephant Hill Site for Open Space  

Decades-long battle ends after Huizar urges City to settle lawsuit over Elephant Hill, a win-win scenario that avoids costly damages and acquires 19 acres of hillside property in El Sereno for preservation as open space

LOS ANGELES (Nov. 3, 2009) - Councilmember José Huizar led the Los Angeles City Council to vote today for a settlement that allows the city to acquire 19 acres of prime hillside property in El Sereno, which will save millions of dollars in litigation costs, preserve the hillside property for open space and finally put to rest a decades-long controversy in Northeast Los Angeles.

"This is a victory for everyone," said Councilmember José Huizar following the Council's vote. "For the residents of El Sereno, they can breathe easier knowing that their beautiful Elephant Hill will be protected against quite possibly dangerous development. It was a tough fight and a long time coming, but in the end Elephant Hill will be safe from development and will remain a treasured open space that will bring joy to many future generations."

In the 1980s, a developer first proposed to subdivide the El Sereno hillside property commonly known as "Elephant Hill." Controversial from the outset, the proposed development triggered community concerns when a similar large-scale development project in nearby Monterey Hills caused widespread subsidence and property damage in the late 1980s.  That case, the Eaton Crest project, was the longest land subsidence jury trial in LA County history - lasting 10 months and ultimately costing the City $65 million to settle with approximately 700 property owners whose properties were damaged as a result of an ill-located hillside development.

Councilmember Huizar took issue with the Elephant Hill proposal because there were substantial changes to the project since it was originally approved back in 1993 and he thought that the impacts of those changes could not be known without further environmental review. The grading area had expanded, additional parcels were added, roads were realigned and subsequent evidence had come to light about significant subsurface water and potential sinkholes.  

Although the proposed project was approved in 1993, the developer did not actually move to build until 2006, when Councilmember Huizar heard the community opposition to a nearly 15-year old Environmental Impact Report (EIR) and led the City Council to withhold a B permit for the project until the developer completed a Supplemental Environmental Impact Report (SEIR).

The developer, Monterey Hills LLC, ignored the Council's direction and sued the City.  In January of this year, the Court ruled that the City erred in its decision but did not grant the developer's request to compel the City to issue the B permit. 

The developer's attorney sought $25 million to $35 million in damages.  Council today voted to acquire the litigated 14-acre property, plus an additional 5 contiguous acres for approximately $9 million.

"We are pleased that this matter has settled and that the City will be saved from costly litigation," said Assistant City Attorney Susan Pfann.  "We are happy to have helped the City Council accomplish this settlement.

Your thoughts? 

Comments (8)
  • Guest User  - State forestry
    Red spot is delusional and not even worth trying to explain anything to him. He gets his facts wrong, makes wild assumptions. Bottom line, after legal and administrative costs (which u pay no matter what scenario), city paid about 8.5 million for 19 acres. I challenge any one to come close to that bargain anywhere in the city. Land is low cost right now--and city bought original 14 acres and additional 5--good move--keep those developers out. I work for the state and I understand the land is eligible for state park prop dollars. The city may get something for nothing at a bargain price for state. The more I think about this/- pure genious. Ascot hills is on hold bc of freeze on state prop dollars that will soon be unfrozen--and the hazard so called wetlands are not designated as such by Feds. That poster red spot should get to work and designate them as such.
  • redspotincd14
    Some thoughts regarding the Elephant Hill Settlement. First, Councilman Huizar is in one monumental hurry to claim whatever political benefit he can get for this dubious boondoggle. Second, Huizar could of use the $9,000,000 dollars of barrowed cash to complete decades-long proposals such as the Ascot Hills Pasive Park and the Hazard Park Wetlands, which are already city owned property and have cash left over. Third, why the haste to settle?? Maybe this lawsuit and its desired result was pre-scripted, considering that Huizar was telling open space activists that requiring an supplemental EIR could end up with the city losing a resulting lawsuit. That was when the protential price for the property was $6,000,000 dollars. Fourth, at one time Huizar was seeking help from the Santa Monica Mountains Conservancy to purchese the property. Elva Yanez who was appointed to the Conservancy Board by Mayor Villaraigosa in 2007, should comment why the SMMC did not step up and purchese the property when the asking price was lower. Fifth, way did Yanez during her time with the SMMC, lobby the organization to steer resources away from public land improvments and redirect them towards Elephant Hill? May it have something to do with neighborhood beautification or property value inhancment? Regardless, preserving Elephant Hill is a worthy cause. But simply, this settlement does not pass the smell test.
  • Guest User
    Whoever wrote this post is absolutely delusional. There are legitimate reasons for every action taken by the councilmember and everyone involved in this land use struggle except one... The unscrupulous developers, thank the higher powers for guys like jose huizar and ed reyes, they are truly local heroes in this debate.
  • Guest User
    This is a serious problem of community members and idiot Councilmembers misusing the EIR process. Why should the taxpayers pay for a handful of people who can hike. The councilman and the hikers should foot the bill.
  • Guest User
    win win win! My kids and i use the land to hike. there are natural hiking trails on the hill and we DONT need more development. Doesnt anyone remember the mud/landslides of the 70's?! My parents house was totally affected by that. So glad Huizar and the rest of the council voted in favor of the residents and not the developers!
  • El Sereno Resident.
    a total win for El Sereno! As a community resident, this was really important to us, we have been fighting to maintain as an open space for a many many many years. I think the Councilmember Huizar showed great leadership in working with community leaders and residents. I was also very happy that Assemblymember de Leon was able to do his part as a state official to preserve open space in his district. Overall, great win for us! Thanks for covering on your blog! I would not pay attention to Mayor Sam. I dont know why he hates El Sereno so much. But its pretty obvious.
  • Guest User
    A win for community.
  • Guest User
    City purchased not only 14 acres in dispute but additional 5 acres for a total of 19 for 9 million. Land is at an all time low in terms of cost. City will get state funding from proposition money. Overall a great deal for city and el sereno. That mayor sam blog is written by a delusional inaccurate neophyte (look it up red spot).
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Last Updated on Wednesday, 04 November 2009 02:31