With the spectacular exception of the gigantic Westfield’s Corp. makeover of the Fox Hills Mall, the other development projects around Culver City are in trouble because of the global financial crisis, says Community Development Director Sol Blumenfeld.
“All of the city’s redevelopment projects are struggling with the whole challenge of the financial market,” he said.
While Culver City sometimes is described as financially insulated, the environment of exasperating fiscal uncertainty that is consuming the country, is as prevalent among hometown builders chasing loans as anywhere else, analysts said.
If builders had not completed their financing before last week’s explosion, said Mr. Blumenfeld, their problems suddenly grew, exponentially.
Status of Parcel B
One of the largest and most intriguing question marks in this section of the Westside is the fiscal health of The Culver Studios where, for weeks, no one has been talking.
Along with Westfield, which started its mall renovation months ago, Mr. Blumenfeld said that Parcel B, the office/retail project adjacent to The Culver Studios, is perhaps the only other building facing relatively clear sailing.
“Parcel B was to break ground in October,” he said.
“We are still expecting them to break ground then, early in the month. That is what his schedule-of-performance calls for, and that is what we are expecting. We believe Parcel B has not been affected by the current financial meltdown. It was put together many months ago as opposed to the ones that are just emerging from redevelopment.
“Our understanding,” said the director, is that Dr. Jeffrey Rush, the chief builder, “has put together his financing already.”
Pursuing Illumination
Since the investment house Lehman Brothers is one of the largest corporate parties to flame out this month, and since Lehman is advertised as “majority owner” of The Culver Studios, and since Lehman has leased the top floor of Parcel B, where do City Hall and Lehman stand with each other?
“I don’t fully understand Lehman Brothers’ relationship with the studio,” Mr. Blumenfeld said. “My understanding is that the developer of Parcel B is developing it independently from the studio. I am not sure whether the developer has been immune from the financial conditions with his company. But the development has been well into the planning stages for years.”
Since opinions are unanimous that bottom has not been reached, ambitious developers find themselves in the position of a parachutist undergoing interrogation in mid-flight.
“How do you feel?”
“I will tell you after I land.”
Neither Culver City nor anyone else has landed.
Baldwin Site Slowdown
As recently as Monday night’s City Council meeting, the developer Wally Marks asked and received a month-long postponement of a public hearing for his much-praised 26-unit retail/office project on the western end of Washington Boulevard, the old Baldwin Motel property. Lauded for its overt greening, the creativity is on hold for now.
(To be continued)
