Boutique Bungling Bears Bounty

And by “bears bounty,” I mean the boutique hotel scam pulls Fullerton into ever deeper shitwater.

By now we all know how stupid, inept, and problematic the so-called “Tracks at Fullerton” has been.

Starting out as a boutique hotel, a dumb idea took on a bloated, lumbering life of its own and has been kept alive through bureaucratic inertia and predictable metastasis.

Hostert

Now there’s a new twist. Word on the street is that the family of the guy with the original brainstorm, Craig Hostert of Westpark Development, is suing the current “developers” TA Partners. You may recall that Hostert is dead. His relatives seem to think that his money men, Johnny Lu and Larry Liu of TA Partners, pushed Craig out of his interest in the project. Johnny and Larry are said to be counter suing.

That can’t be good…

Parenthetically, I might add that Johnny and Larry are no strangers to the legal system, having left a trail of bankruptcies, foreclosures, and fraud in their wake. Fullerton being Fullerton.

Enhanced with genuine brick veneer!

I don’t know what the lawsuits might entail, legally, but due to the incompetent actions of Councilmembers Bruce Whitaker, Shana Charles, and Ahmad Zahra in upzoning the property, there could be a lot at stake. Remember, the City sold Westpark/TA almost two acres of land for $1.4 million (less demolition costs) while making it worth ten times that amount by abusing the allowable density in the Transportation Center Specific Plan.

Right now the City Hall silence remains deafening. We do know the council met in closed session about this awhile back, and still the public remains in the dark. Why hasn’t the City kicked Johnny Lu and Larry Liu to the curb long ago? They were supposed to have performed all sorts of stuff by now. Here are Johnny and Larry’s milestone obligations per the Development and Disposition Agreement, approved at the end of December, 2022.

Read. Weep.

Westpark/TA Partners are clearly in default. Plans submission was supposed to take place in December 2023 – fifteen months ago. Permits were required to be obtained fourteen months ago. Grading was supposed to start eleven months ago. Above ground construction was supposed to start by the end of last October – five months ago. See a pattern?

For some reason TA Partners was given some wiggle room in the actual verbiage of the contract for plans submittal – 240 days which would have been February of 2024, still thirteen months ago, and still a massive default.

Was there an “Unavoidable Delay?” Who gets to know? Why would the City fail to exercise its right retake the property? If you see a councilperson, please be sure to ask. Of course you won’t get an answer as the whole thing is shrouded in Closed Session secrecy. Without any action on the part of Fullerton, the two fly-by-nighters are still in possession of entitlements worth a pile ‘o cash – enough to excite the pecuniary envy of Mr. Hostert’s heirs and assigns.

I get the strange feeling that this latest legal entanglement might have repercussions for any case Fullerton might have in getting rid of Johnny and Larry. It shouldn’t, but it might be cause for staff to continue to string this thing out since it has been such a lucrative toy for Fullerton’s crack “economic development” employees.

Boutique Fun and Games With Johnny Lu and Larry Liu

FFFF has already reported on some of the colorful financial background of Johnny Lu of TA Partners, our City’s stand-up partner on the so-called “boutique” hotel project at the railroad tracks. This hot mess even has a name: The Tracks at Fullerton Station. The development has morphed into a monstrous minotaur by adding approval for a massively dense apartment – an amalgamation which gives us a shocking 130 units per acre, overall.

Well, anyway, we previously shared the news that Johnny was in default on massive construction loans he somehow finagled for projects in Irvine a few years ago. The lender on those has foreclosed on those properties.

That can’t be good…

And here’s some even more recent news. It seems that Johnny has waded out into more legal problems over in LA, according to The Real Deal, a real estate news source. Here’s the thrust of the complaint by bamboozled investors on a “project” at Playa Vista:

The investors — who form an entity called RUC14 Playa LLC — sued Lu, Liu and TA Partners, alleging commingling of funds, fraud and misrepresentation, court records show. Attorneys for TA Partners, which have requested for arbitration in the case, did not respond to a request for comment.

Johnny and his partner, Larry Liu, declared their bankruptcy on the Playa Vista project. But let’s give the misunderstood boys a break. A little contrition goes a long way, right? Said Larry:

“We would like to offer our apology for the non-compliance during project execution,” Liu wrote in the letter. “Self-reflection is needed and I would like to apologize.”

Whatever any of this means to “TA Westpark LLC.,” the corporation that was awarded the Fullerton project entitlements (without any competition) remains to be seen. But now Johnny and Larry have equity – and boy have they got equity; see, Councilmembers Zahra, Charles and Whitaker handed them a bonanza – a plot of land available for hundreds of units – for a mere pittance: $1.4 million less associated costs.

Ms. Charles happened to mention at a council item about raising funds for Fullerton’s fiscal disaster, that the boutique hotel plan was moving along. But there was no mention of the fiscal disaster facing Johnny and Larry Enterprises. Does she even know? Does she understand what is happening? Does she care? Probably no on all three.

The plan here is crystal clear. At this point nobody is going to lend Lu and Liu a bent nickle. But these fine fellows will have entitlements worth tens of millions on this project; a project that never should have happened in the first place – an unsolicited proposal by a local guy who had no chance of building a birdhouse.

This project will be reassigned to a third party, someone the City “business development” expert bureaucrats will be sweet-talked into recommending. And then Johnny and Larry will quietly disappear from Fullerton with millions belonging to us.

Fullerton being Fullerton.

Bungling Boutique Boondoggle Blunders

Some folks have been asking about the fate of the idiotic “boutique” hotel project that had morphed into a hideously overbuilt hotel/apartment hippogriff that is twice the allowable density permitted per the City’s own Transportation Center Specific Plan. Of course the project was never contemplated at all in the Specific Plan, so who cares, right? Fullerton being Fullerton.

In an act of utter incompetence the City actually rushed the approval to transfer of title to the land, before the deal had received final approval. Then they gave it away the land for pennies on the dollar.

Friends may recall our last October post in which we discovered that the new “developer,” one Johnny Lu of TA Westpark LLC, was way upside down on loans he had somehow leveraged on apartment blocks in Irvine and was in default.

You may also recall that Lu started shifting the property to different corporations, the first of which, a Delaware corporation, was non-existent. And just for grins, Mr. Lu changed the property description, too, when he later deeded it back to his California Corporation.

Anyhow, it looks like Johnny has finally created and recorded the appropriately named Delaware corporation in March – only two years too late, but, hey, not bad for Fullerton, right?

There has been nothing but radio silence from City Hall as to the status of Mr. Lu and whether he has met any of the stipulated deadlines in the Development and Disposition Agreement, but as we have learned in the case of the Florentine/Marovich sidewalk heist, contractual obligations mean nothing when the “I Can’t Believe It’s a Law Firm” of Jones & Mayer is your City Attorney. Recently, cluelessly verbose Shana Charles indicated that the project was still alive and well. She didn’t mention Mr. Lu’s financial embarrassment, but then nobody else has, either.

And now for some sadly interesting news. It turns out the original Founding Father of the boutique hotel concept, Craig Hostert of West Park Development – the guy who sold the idea to Jennifer Fitzgerald, Jan Flory, Jesus Quirk Silva, Ahmad Zahra, Bruce Whitaker, et. al. – died in late May.

Hostert

Poor guy. He went to his Reward after getting pushed out of his own scheme, and sticking us with the appalling, metastasized mess the concept has predictably morphed into; showing that once again, no bad idea goes unappreciated in downtown Fullerton. Being Fullerton, of course.

The Opportunity Site

A few days back I shared a couple of upcoming agenda items that the City Manager had forecast for the May 21st Fullerton City Council meeting.

I observed the reference to a development agreement with some entity called “Frontier” and also to an item simply called “Fox Block.” The two are related, but oddly, not listed together. Fullerton being Fullerton.

What I didn’t notice at the time was another item called “Chapman Parking Lease” another non-descriptive term, possibly not meant to attract attention.

A helpful Friend point out my oversight and got me thinking. Chapman parking? What the Hell is that? Then the other shoe dropped. There is a city-owned parking structure on the south side of Chapman Avenue, between Lemon and Pomona. It was built by the Fullerton Redevelopment Agency back in the ’90s the heyday of Fullerton Redevelopment, when they had so much money they could build parking structures that nobody even needed. Could this be what the cryptic agenda item referred to? Supposedly the facility was meant to help out Fullerton JC and maybe this is the entity with whom a lease was worked out.

The Junior College District has now built parking structures of its own, using our property tax increases to do it. Maybe the Chapman structure is now superfluous.

Could be. Check this out:

This satellite image has been used to accompany information/propaganda relating to the development known as the “Fox Block.” And the violet shape over in the lower left side of the image is the parking structure.

Hmm. Can this possibly be the site of yet another butt-ugly, monstrously overbuilt, under-parked housing project? Why not? It would be the only part of a Fox Block fiasco that could be worth anything to anybody. And since the City can no longer hand over piles of cash to “developers,” they can certainly hand over free land, enriched by the necessary zone changes.

I’m sure it’s all a big secret now. But in a couple days the May 21st agenda will be posted and maybe we can find out what “Frontier,” whatever that is, might be getting gratis from the people of Fullerton.

Coming to a Theater Near You

On this week’s Fullerton City Council agenda I caught a glimpse of the upcoming May 21st agenda forecast:

AGENDA FORECAST (Tentative)
Tuesday, May 21, 2024

  • APRIL 2024 CHECK REGISTER
  • MONTHLY COMMITTEE ACTIVITY AND ATTENDANCE REPORT
  • DISPOSITION AND DEVELOPMENT AMENDMENT FRONTIER
  • COSTA COURT AREA STREET REHABILITATION PROJECT
  • ALL CITY MANAGEMENT SERVICES CONTRACT
  • SENATE BILL 1383 COMPLIANCE ACTION PLAN FOR SERVICES AND PROGRAMS
  • CHAPMAN PARKING LEASE
  • FOX BLOCK
  • REVENUE OPTIONS

Not all that interesting until you get to the bottom.

Yeah, it was ugly as sin, but there sure was a lot of it…

The Fox Block, a never ending saga and a classic example of a tail wagging a dog. For years the “rehabilitation” of the historic Fox Theater structure has been used to support all sorts of God-awful lunacy, including residential land acquisition and demolition, new grotesque clown architecture, and the six million dollar relocation of the McDonalds restaurant a couple hundred feet to the east. The “Fox Block,” as the boondoggle came to be known, is a living fossil of the bad old Redevelopment days, when any nonsense could be got away with by City staff playing with Monopoly money. Damn accountability. It’s the Fox Block!

Why this is on the agenda is as yet unknow, but I noticed that one of our Friends “Fullerton Historian” suggested it may have to do with extending a development agreement or some other similar concept. Then I saw the third bullet point above: Disposition and Development Amendment with Frontier. “Frontier?” That’s all? What is this? Frontier Real Estate is our “partner” on the Fox Block, meaning we’re probably taking the risk and they’re goon get any reward – if there is any.

M. Eric Levitt. Will he save us from ourselves?

And finally we see an item simply called “Revenue Option” an oatmealy sort of phrase, but one that FFFF has already discussed. At this meeting the City Manager, Eric Levitt, will try (without too much unseemly enthusiasm) to tie dangling threads heretofore described here: a push poll created to drum up support for enhanced public services; a review of the likelihood that general sales tax might pass at 50%; and a precipitous budgetary cliff looming ahead.

See where this is going? Let’s see who stands up and demands that for our own good we must have a tax increase.

An Unhappy Anniversary

And what anniversary might that be, Friends may be asking.

Not gone, but almost forgotten…

This Wednesday, March 27th, marks the one-year anniversary of a deadline date agreed to by the City of Fullerton and one Mario Marovic, a downtown bar owner. Not much of a deadline, huh?

Hey, that’s not yours!

By March 27th, 2023, Mr. Marovic was required to have started demolition of the so-called “bump out,” an illegally constructed room addition built by the Florentine Mob two decades ago on City property. Marovic had gotten rid of the Florentines, finally, but decided that the leasehold on the room addition was somehow ripe for the encroaching. So he began remodel work on the leasehold right along with the rest of the building that he does own.

Busted.

Meet the new proprietor, same as the old proprietor…

But Fullerton being Fullerton, where nothing seems to be done right in City Hall, and where downtown scofflaw saloon owners do whatever the Hell they please, Marovic seems to have decided that the deadline meant, and means, nothing. And why should he believe otherwise? He has seen firsthand how the City bureaucracy and the City Attorney bent all the way over for the Florentines – instead of making them obey the law.

Well, the Earth has made an entire revolution of the Sun.

The City Council may occasionally talk about this in their hush-hush, top secret “Closed Session” meetings, but the public is not to know what is happening, even as our money and property are being frittered away. We do know that Marovic has threatened a claim against the City, but so what? Why would that be cause for the City to ignore Marovic’s breech of contract and seize the public property that Marovic encroached on illegally?

dick-jones
Staying awake long enough to break the law…

The reason could be that our esteemed lawyer, Dick Jones of The I Can’t Believe It’s a Law Firm, believes upholding agreements is not a winning strategy. Of course this third rate pettifogger has won so few cases for us, and has lost so many that we may feel confident questioning his judgment.

Or, it could be that the feckless and spineless City Council has been individually persuaded by Marovic that it’s in their best interest to ignore the deal, and that they should just let Marovic keep raking in the bucks thanks to a Conditional Use Permit that was contingent upon the removal of the room addition.

Preservation Attempt in South Fullerton

I checked out the upcoming Fullerton City Council agenda and noticed an appeal of a Planning Commission decision to approve a new, 185,000 square foot warehouse project at 801 S. Acacia Avenue.

The appeal is being made by Fullerton Heritage who believe that the PC failed to receive enough relevant information about the existing building’s historical significance.

Apparently the structure was designed by noted SoCal architects A. Quincy Jones and Frederick Emmons. It’s front elevation sports a mid-century modern aspect.

The back doesn’t seem very distinguished – metal buildings and canopies. According to FH they used to make sliding doors here including those requested by well-known architects.

Well, good luck to Fullerton Heritage, say I. The City government has almost always turned a blind eye to historic preservation, pretending otherwise, of course. And in the old days “historical” meant old and cutesie – in City Hall it probably still does, and it’s not hard to see staff blow past something like this.

Of course Historic Preservation is generally a more “liberal” idea and in this case the property in question is standing in the way of “economic development” a concept so near and dear to every politician’s self-promotion. It should be fun to observe District 5 Councilman Ahmad Zahra navigate his way between some of his natural constituents and his proclaimed dedication to the hustle of economic development.

The Cost of The Florentine Sidewalk Scam

Gone, but not quite forgotten…

Of course everybody is now familiar with how, in 2003, the Florentine Mob successfully put a permanent building on an area that only had an “outside dining” encroachment agreement. The details of the case reveal an incompetence and misfeasance on the part of city staff that is truly mind-numbing, the principle party being F. Paul Dudley, Planning Director, who “approved” the illegal permanent structure as it was being built in June, 2003. He also  seems to have personally approved a loan to the Florentine crew, and rental terms on the space that weren’t approved by the City Council.

dick-jones
Staying awake long enough to break the law…

Of course it wouldn’t be Fullerton unless our legal-eagle Dick Jones also played a part in the fiasco, and in the inevitable cover-up. He actually put his signature on a completely different agreement in August, 2003 – two months after Dudley did his sleazy back-room deal. How’s that for staggering incompetence?

The gun was smoking badly…

Note that “for some reason” the agreement was not formally executed until August. For some reason? Jesus H., Jones, did you even bother to ask why you signed something that was obsolete, or why in Hell you were signing it?

So the embarrassing enclosure was allowed to continue in July, 2003 even though the furor continued for months, and the deal was finally buried in 2004 whereby the parties involved, Shawn Nelson, Don Bankhead, Dick Jones, Mike Clesceri and Leland Wilson surely hoped it was forever interred.

Well, now it’s 2020. The legal party responsible to remove and restore the encroachment area has fled the scene, and the embarrassment of the Florentine addition that squats on public property, remains.

The owner of the rest of the building, Mr. Mario Marivic is apparently embroiled in a legal fight with the FloMob, and good luck to him. But good luck to us, too. Because we, the citizens of Fullerton, have an unowned room addition on our right-of-way, and the people on the hook for its possible removal are gone. Mr. Marovic is under no obligation to remove the structure, and he is not even under any obligation to pay the measly 25 cents per foot that the egregious F. Paul Dudley “negotiated” with the Florentines. The City’s options are limited: it can terminate the encroachment and pay to remove the building addition itself, or it can negotiate a new lease agreement with Marovic, and the sidewalk stays as is. Either way, the public loses.

So this Ghost of Incompetence Past continues to haunt us almost 20 years after the con was consummated. Mr. Dudley has been six-figure pensioned, and the inept councilmen who were indifferent to the notion of government accountability are dead or moved on. But Attorney Dick Jones is still around, profiting off of the gullibility, incompetence and militant ignorance of our “leaders.”

I Believe I’ve Seen This Show Before

The view doesn’t get better…

Some poor dopes think that history repeats itself, and yet there are times when it’s hard to argue the point, as when the City Deciders of Fullerton wade out into the same quicksand again and again and again.

I’m referring to the tedious habit of entering into lame exclusive agreements for stupid projects involving public property – which are then renewed and extended year after dismal year. We’ve seen this sorry practice with the massively moronic massive Amerige Court/Commons/Whatever mess; and again with the Transportation Center Master development fiasco, both of which were kept on life support for years and years by a city staff and city council who just couldn’t admit a bad idea had somehow festered forth from City Hall.

Enhanced with genuine brick veneer!

The latest in the string is the unsolicited proposal for a “boutique” hotel in the train station parking lot, an idea so stupid that only our city council could embrace it. FFFF has posted about it twice.

The train of thought was weak but it sure was short…

First we noted that some sort of pressure or promise was made to Weakest Link Jesus Quirk Silva to get him to change his vote and approve an exclusive negotiating agreement with some guy calling himself Park West Contractors and Westpark Investors. That was a year ago.

Davis, meet Bacon…

And then a few weeks ago FFFF shared the story of local union goons popping up at some dog and pony show to promote the project.

I know who I work for, and it isn’t you!

Anyway, the year term of exclusivity given to Mr. Parkwest Westpark has come and gone and so naturally the City has decided to give him another year, rather than to actually put the property on the market for alternative ideas. The November 19 vote was 4-1 with Bruce Whitaker opposing. We also learned that Ms. Jan Flory, true to form, strongly backs this concept, which is pretty ironic, given her past support of time extensions to the “developer” given the exclusive right to negotiate on the Transportation Center cock-up, a plan whose key component is the site of the proposed boutique hotel.

 

Meanwhile, Back @ the Ranch – Part 1

Don’t let the size fool you. This one’s mean…

As you Friends can imagine the FFFF  industrial complex has been engaged, mano a mano, with the yapping legal beagles employed by the City.

But now I take a break from the marblemouthed drone of Dick  Jones’s lies  to catch up our Dear Readers with other events of the past few months. If you supposed that the spotlight of media attention on its legal mischief has caused Fullerton politicians and bureaucrats to call a pause to its idiotic endeavors, boy, would you be wrong.

Be sure to visit the roof garden…the view of the auto repair shop next door will be amazing!

In October, the proposed dee-veloper of a “boutique” hotel on a parking lot next to the Santa Fe Depot gave a show for us rubes.

You may recall this dubious project – Doug “Bud” Chaffee’s parting gift to us: approval of an exclusive negotiating agreement based on the developer’s unsolicited proposal for a hotel on what is now a parking lot. Nobody had ever heard of this bold impresario before, but no matter. Jennifer Fitzgerald has always wanted one of these “boutique” hotels, even though it was never in the Transportation Center Specific Plan she kept foisting on us all those years.

One of these people is a tax and spender. So is the other…

In case you don’t remember, I bring your attention to the record of our dimwitted and unintelligible mayor, Jesus Quirk Silva, who changed his vote from the previous meeting to make this absurdity move along. He even made up fake “experts” who supposedly changed his mind.

Anyhow, it seems this newly minted “hotelier” thinks downtown Fullerton is “dilapidated” and needs his special kind of remedy – a boutique hotel for all those fancy swells who haunt DTF’s exclusive nightclubs and other highfalutin venues. The pictures, however, suggest a six story stucco box with some brick veneer stuck on the front to satisfy the locals sensibilities.

Carpenter ants are a nuisance if not properly controlled…

And at this meeting a strange apparition appeared: a bunch of carpenter union goons in jobsite safety vests. Presumably their presence was meant to impress upon the assembled citizenry how necessary such city-supported boondoggles are to their well-being.  It’s become common for this in Anaheim, but this is ridiculous. It wasn’t even a public hearing where such theatrics might persuade the more feeble-minded decision maker.

Apparently, word has not yet got out from City hall about whether this harebrained scheme is going to be subsidized with free or discounted land, but I’d be willing to bet on that. After all, this City is not for sale. If you’re connected with the city council you just step up and take what you want.