When I first heard of the 4043 Irving Pl. Deal — or Steal — is irrelevant. I said to myself, “Where have I heard that idea before?”
Robert Zirgulis, aka Mr. Z:
Can City Council aka the Culver City Redevelopment Agency, the CCRA, be prosecuted for plagiarism? Any lawyers in the house?
http://www.thefrontpageonline.com/new/articles1-6491/AnyBiddersHowAbout10MillionfortheNatatorium
Sept. 24, 2009.
Why doesn't the School Board sell some of its property and then lease it back from investors who made the purchase?
If the School Board sold a building, such as the long-abandoned Natatorium for, let’s say, $10 million, the investor could give a 99-year lease to the School Board for the Natatorium.
The $10 million proceeds could be used to refurbish the place for about $1 million.
The school would have $9 million left to pay nominal rent and pay off the deficit.
The investor would be able to write off depreciation and collect some rent. It would be a win-win situation.
What do your readers think of my idea? Do you really want to know?
Mr. Z:
The School Board didn't make one comment when I made my offer. At least I'm trying.
Fast forward to July 26, 2010:
Why doesn't the CCRA sell some of its property and then lease it back from private developers who made the purchase?
If the CCRA sold a lot, such as 4043 Irving Pl., for, let’s say, $3.1 million, (rebated $577,000), the investor could give a 55-year lease for 12 units to the CCRA for a $6 million publicly funded loan with a $2.4 million grant included.
The $6 million proceeds would be used to fund almost half the cost to build the 28 luxury apartments, a mixed use project. Total project cost: $14 million.
Anybody ever seen one of these things come in under budget? Speak up now or forever be quiet. Forgot that Culver City citizens are always quiet. My bad.
Back to reality: The CCRA would then have nothing from the giveaway of public land for $3.1 million with $577,000 rebated, the Culver City citizens would have nothing but bragging rights for 3 low and 9 moderate income tenants having the privilege of paying rent at the bargain price of $1,500 for one bedroom and $2,500 for two bedrooms single floor apartments to the private developer.
The private investors would be able to write off depreciation and collect some rent and get $2.4 million of the $6 million forgotten. It would be a win-win situation.
What do your readers think of this idea? We will never know will we? The RACC meets and decides in secret and the CCRA rubber stamps it in public.
Mr. Abrams may be contacted at gabrams@ca.rr.com
