The Final Act in Lincoln Heights "Las Villas Saga" ??
Thanks to the concern citizen who forward this on the proposed CRA resolution regarding the "Las Villas Project" in Lincoln Heights.
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA.
MEMORANDUM
DATE: APRIL 16, 2009 AD0000
TO: CRA/LA BOARD OF COMMISSIONERS
FROM: CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER
RESPONSIBLE PARTIES: STEVE VALENZUELA, REGIONAL ADMINISTRATOR
STANLEY LEFKOWITZ, SENIOR FINANCE OFFICER
SUBJECT: SUBORDINATION OF CRA/LA DEED OF TRUST AND LOAN IN
AN AMOUNT NOT TO EXCEED $913,000 FOR LAS VILLAS INC.,
LOCATED AT 3301-3331 NORTH BROADWAY IN LINCOLN HEIGHTS
EASTSIDE REGION (CD1)
LOAN COMMITTEE: APPROVED MARCH 10, 2009
RECOMMENDATION
That the CRA/LA Board of Commissioners authorize the Chief Executive Officer or designee to
subordinate the CRA/LA Deed of Trust for Service Repayment Loan # 872498 in favor of Las
Villas Inc.(Borrower), in the amount of $1,500,000 to a new Wilshire State Bank Deed of Trust in an amount not to exceed $913,000 for the vacant commercial property located at 3301-3331
North Broadway, in the community of Lincoln Heights.
SUMMARY
Approval of the recommend action will permit Borrower to pay off a matured senior loan to
Wilshire State Bank (WSB) in the amount of $579,000 principal and interest, pay off past due
property taxes to Los Angeles County of $72,744, loan costs including an interest reserve of
approximately $68,000, accounts payable of $59,152, consulting fees of $115,000 and
miscellaneous expenses of $18,560.
The principal balance outstanding to CRA/LA is $1,500,000. The service repayment loan
accrues no interest, principal is to be forgiven over a ten year period upon completion of the
project and achievement of public benefits (i.e. low/mod job creation). The Borrower has
abandoned all plans to develop the site and the property is currently listed for sale. Moreover
the new senior loan of $913,000 has a one year term, allowing Borrower adequate time for an
orderly sale of the property. The future net sale proceeds are expected to be sufficient to pay
off the indebtedness to both WSB and CRA/LA.
Some concerns,
If there is a profit to be made who should make it. The City or Las Villas
Why are the funds being allocated to pay for a consultant who obviously didn't do a good job in consulting the Teresa and Alicia the owners of "Las Villas"
Is title held in Las Villas, if so why doesn't the city just call the loan and if "Las Villas, Inc." can't pay for it then the city should foreclose and sell the property with a Condition, Covenant and Restriction that no new owners can ever use the land for any beer or gaming purposes.
Ed Reyes should be the first to push for this because in CRA's own words they acknowledge that the "Las Villas" project met with strong opposition from the community for it intended purposes of serving alcohol and providing gaming near schools.
Your thoughts..........
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF LOS ANGELES, CA.
MEMORANDUM
DATE: APRIL 16, 2009 AD0000
TO: CRA/LA BOARD OF COMMISSIONERS
FROM: CECILIA V. ESTOLANO, CHIEF EXECUTIVE OFFICER
RESPONSIBLE PARTIES: STEVE VALENZUELA, REGIONAL ADMINISTRATOR
STANLEY LEFKOWITZ, SENIOR FINANCE OFFICER
SUBJECT: SUBORDINATION OF CRA/LA DEED OF TRUST AND LOAN IN
AN AMOUNT NOT TO EXCEED $913,000 FOR LAS VILLAS INC.,
LOCATED AT 3301-3331 NORTH BROADWAY IN LINCOLN HEIGHTS
EASTSIDE REGION (CD1)
LOAN COMMITTEE: APPROVED MARCH 10, 2009
RECOMMENDATION
That the CRA/LA Board of Commissioners authorize the Chief Executive Officer or designee to
subordinate the CRA/LA Deed of Trust for Service Repayment Loan # 872498 in favor of Las
Villas Inc.(Borrower), in the amount of $1,500,000 to a new Wilshire State Bank Deed of Trust in an amount not to exceed $913,000 for the vacant commercial property located at 3301-3331
North Broadway, in the community of Lincoln Heights.
SUMMARY
Approval of the recommend action will permit Borrower to pay off a matured senior loan to
Wilshire State Bank (WSB) in the amount of $579,000 principal and interest, pay off past due
property taxes to Los Angeles County of $72,744, loan costs including an interest reserve of
approximately $68,000, accounts payable of $59,152, consulting fees of $115,000 and
miscellaneous expenses of $18,560.
The principal balance outstanding to CRA/LA is $1,500,000. The service repayment loan
accrues no interest, principal is to be forgiven over a ten year period upon completion of the
project and achievement of public benefits (i.e. low/mod job creation). The Borrower has
abandoned all plans to develop the site and the property is currently listed for sale. Moreover
the new senior loan of $913,000 has a one year term, allowing Borrower adequate time for an
orderly sale of the property. The future net sale proceeds are expected to be sufficient to pay
off the indebtedness to both WSB and CRA/LA.
Some concerns,
If there is a profit to be made who should make it. The City or Las Villas
Why are the funds being allocated to pay for a consultant who obviously didn't do a good job in consulting the Teresa and Alicia the owners of "Las Villas"
Is title held in Las Villas, if so why doesn't the city just call the loan and if "Las Villas, Inc." can't pay for it then the city should foreclose and sell the property with a Condition, Covenant and Restriction that no new owners can ever use the land for any beer or gaming purposes.
Ed Reyes should be the first to push for this because in CRA's own words they acknowledge that the "Las Villas" project met with strong opposition from the community for it intended purposes of serving alcohol and providing gaming near schools.
Your thoughts..........
Labels: CRA, las villas
Posted by Red Spot in CD 14 @ 5/07/2009 08:37:00 AM
6 Comments:
The CRA is a goodie basket from which the City Council members reward their ass kissing political hack friends. This mess is a giveaway of taxpayer monies for no public benefits at all.
Red Spot I am fascinated by your learning disability. In particular your failure to grasp past-tense.
were is the MONEY?
My thoughts is I don't care. I don't like the government or community determining development. Let the market decide. LA's a mess because half the developers are subsidized and they're shitty developers who couldn't survive in the free market.
Nothing wrong with drinking. If the community doesn't want a bar don't go there. But the community is going there.
Sorry.
Higby is right. The only thing he cares about is gravy on his tacos.
12:36
If you don't like what Red Spot writes, why in the hell do you continue to keep coming back for more?
Obviously, you must have a LOVE attraction with her.
Why don't you propose?
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