Connect with us

Business

Beverly Hills is dragging its heels on a new building. The governor says: Build it

Published

on

Beverly Hills is dragging its heels on a new building. The governor says: Build it

California officials are turning the screws on the city of Beverly Hills, where approval of a new hotel and apartment complex is moving too slowly for state housing bosses and the governor.

The lightning rod is a planned mixed-use development near Wilshire Boulevard that has been brought forth under a state law intended to force cities to add more housing whether they like the proposals or not.

The 19-story building on Linden Drive by local developer Leo Pustilnikov would be big by Beverly Hills standards and include a 73-room hotel and restaurant on the first five floors. Plans call for the higher floors to contain 165 apartments including 33 units reserved for rental to lower-income households.

The project so far has failed to pass muster with city planning leaders, who say Pustilnikov hasn’t provided all the details about the project that the city requires to consider approval.

Pustilnikov has pioneered a novel interpretation of a state law known as the “builder’s remedy” to push cities to allow development projects at a size and scale otherwise barred under zoning rules.

Advertisement

As part of their efforts to tackle California’s housing shortage and homelessness crisis, legislators recently beefed up the law, by giving developers leverage to get large proposals approved so long as they set aside a percentage for low-income residents.

Last month the state Department of Housing and Community Development backed Pustilnikov in a “notice of violation” to the city, saying it was violating state housing laws by holding up the project.

“The City Council should reverse its decision and direct city staff to process the project without further delay,” the state notice said, referring to a council vote in June to delay the approval process.

Gov. Gavin Newsom piled on in a statement, saying that the city is violating the law by “blocking” the proposal and referring to opponents of the project as NIMBYs — a highly charged acronym for “not in my backyard” that refers to homeowners who resist development projects in their neighborhoods.

“We can’t solve homelessness without addressing our housing shortage,” the governor said. “Now is a time to build more housing, not cave to the demands of NIMBYs.”

Advertisement

Beverly Hills already faced pressure to approve the Linden project before the state’s letter. In June, Californians for Homeownership, a nonprofit affiliated with the California Assn. of Realtors, sued the city in Los Angeles County Superior Court for not advancing the development.

Some residents in the neighborhood south of Wilshire Boulevard are up in arms about the scale of the project that is designated to fill a parking lot at 125-129 S. Linden Drive between a five-story office building and low-rise apartment buildings.

“None of us are opposed to affordable housing,” said Kenneth A. Goldman, president of the Southwest Beverly Hills Homeowners Assn., but “you don’t have to be a NIMBY to say that’s just so far out of line.”

It would be almost four times taller than the five-story height limit the city has on its books and could threaten the neighborhood’s “quiet lifestyle,” Goldman said. The construction period would be “hell,” he added.

The city has until Sept. 20 to respond to state housing officials and indicated in a statement that the delay was due in part to Pustilnikov changing the original all-residential proposal to include the hotel. It is a switch that could offer a financial coup for the developer in a tourist-friendly city, where getting permission to build a new hotel is a tall order.

Advertisement

Last year Beverly Hills voters decided to rescind the City Council’s approval of an ultra-opulent hotel called Cheval Blanc on the edge of Rodeo Drive after French luxury retailer LVMH spent millions of dollars planning the project.

Of the Linden Drive proposal, the city said in a statement, “The project has not been denied.”

“What was originally submitted as a purely residential project has now morphed into a 73-room hotel and restaurant project with 35 fewer residential units, including a reduction of 7 affordable units,” it said.

When the application is complete, the city said, a public hearing will be held, followed by Planning Commission review and potential approval by the City Council.

That process may be complicated by Pustilnikov’s stated intention to sell his interest in the Linden Drive property as part of a Chapter 11 bankruptcy proceeding involving another of his real estate projects.

Advertisement

In 2018, Pustilnikov purchased a 50-acre parcel on the Redondo Beach waterfront that is the site of a defunct power plant. The property is controlled by entities owned by Pustilnikov and a business partner, Ely Dromy. Using the builder’s remedy law, the pair has advanced a massive mixed-use project for the site with 2,700 apartments as its centerpiece. In court documents, Pustilnikov estimates that the development, if completed, would be worth $600 million.

The effort has been stymied amid fights with the city of Redondo Beach, the California Coastal Commission and AES Corp., the owner of the power plant. In late 2022, AES threatened to foreclose on Pustilnikov. To stave that off, one of the entities that own the site filed for bankruptcy.

In a recent filing in the case, Pustilnikov and Dromy said they will sell the Linden property for $27.5 million to help preserve their ownership of the power plant site.

However, a representative for Pustilinkov, Adam Englander, said in a statement that is not necessarily the case.

Instead, more investors may be brought in to the Redondo Beach property and a developer with luxury hotel experience may become a partner in the Linden project, Englander said.

Advertisement

“It is not anticipated,” Englander said, that the Linden project “in its current form, will be sold prior to completion.”

Pustilnkov has put forward plans to build nearly 3,500 apartment units — 700 of them dedicated as low-income — across a dozen projects in Beverly Hills, Redondo Beach, Santa Monica and West Hollywood under the builder’s remedy. The Linden project is one of seven he’s planning in Beverly Hills alone.

The builder’s remedy provides few avenues for city councils to deny the developments. But because it’s legally untested and separate state environmental laws still apply, projects are not a slam dunk. None of Pustilnikov’s proposals have been approved.

Cities are subject to the law if they do not have state-approved blueprints for future growth. Every eight years, the state requires communities to design a zoning plan accommodating specific numbers of new homes, including those set aside for low- and moderate-income families.

In the current eight-year cycle, Beverly Hills struggled to get a plan that passed muster. Elected officials and residents balked at the city’s requirement to make space for 3,104 homes, saying that doing so would unalterably change the community’s character.

Advertisement

The city blew multiple deadlines and was sued by Californians for Homeownership. In December, a L.A. County Superior Court judge ruled that Beverly Hills could no longer issue any building permits — including those for pools, kitchen and bathroom remodels and other renovations — because of its failure.

The city appealed the ruling and continued to process permits in the meantime, but the decision sparked alarm among civic leaders. In May, the state approved a revised housing plan for Beverly Hills, ending the threat of the permit moratorium.

Business

In a first for the country, voters in Monterey Park ban data centers

Published

on

In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

Advertisement

That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

Advertisement

“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

Advertisement

“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

Advertisement

Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

Continue Reading

Business

Rent-hike ban to protect fire victims ends despite gouging concerns

Published

on

Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

Advertisement

Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

Advertisement

“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

Advertisement

A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

Advertisement

Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

Advertisement

Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

Continue Reading

Business

Read Nick Bilton’s Letter to Scott Pelley

Published

on

Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

Continue Reading
Advertisement

Trending