Greensmark on August 27, 2009, at 09:04AM – #1

It's about time that these tenets pay the going rate. Especially for what some would call a "built in" cliental. I love the part about "we had the money, they just want us out" Yes, out with the deadbeats that WON'T pay, but want to play a game with our city.

Grnsmrk

ab on August 27, 2009, at 01:14PM – #2

Not to be insensitive, but it sounds like the owners appeared to try to manipulate the system for delays and possible lack of enforcement and it caught up with them. Why didn't they offer partial payments in good faith so that they can prove they were trying. For the owner to say that they had the money, gives the appearance that they were playing games.They should have cured the evicition by paying on the first notice.

You cannot pay the bills with "sentiment."

redspotincd14 on August 27, 2009, at 02:16PM – #3

Ed,

The owners forget about these types of payments.

From the LA Times.

He's baaaack, our own David Zahniser, with the final installment of our illuminating series about the fundraising sprint -- 11 events in nine days -- by LA's mayor:

Where does the time go? With his nine-day fundraising blitz coming to a close, the mayor has one last event to bring cash into his campaign coffers.

According to info filed with the city’s Ethics Commission, tonight’s fundraiser will be held in downtown Los Angeles at Liberty Grill, a sit-down steakhouse owned by the restaurant company Camacho’s Inc. So it shouldn’t be too surprising that one of the two co-hosts is Andy Camacho, founder of the Los Angeles-based restaurant company.

Camacho’s has concessions at Los Angeles International Airport and Ontario/LA International Airport – facilities overseen by Villaraigosa’s appointees on the Board of Airport Commissioners. Concessions for the Camacho’s two LAX restaurants are set to expire in 2010, according to the airport agency.

Andy Camacho already co-hosted a VIllaraigosa fundraiser on June 24, according to another invitation. On that same day, the Los Angeles City Council voted to award a five-year lease to Camacho’s. Inc. to operate a 3,460 square foot café and store in a building at the El Pueblo monument that surrounds Olvera Street.

The vote came at the recommendation of Villaraigosa’s appointees at the El Pueblo de Los Angeles Monument Authority. They said the agreement should charge Camacho’s $1.60 per square foot in the lease’s first year, $1.80 in the second year, and $2 in the third, fourth and fifth, plus maintenance fees.

Camacho’s won the lease through a Request for Proposals application, which is a competitive process. Still, a real estate broker with CB Richard Ellis told the Downtown News last month that rents at Olvera Street have been below market rate – and should be closer to $3.75 or $4 per square foot, depending on building conditions.

With tonight’s event, Villaraigosa will have had at least 21 re-election fundraisers in three months – more than half of them since June 21! He’ll likely take a break, now that the deadline for his first fundraising period is past. But with the next deadline scheduled for Sept. 30, don’t be surprised to see him hop aboard the money train again in a couple months.

It seems that the Mayor will be busy in his second term, rewarding those who donated to his next four years of dubious acheivements.

Red Spot in CD-14 at Mayor Sam, Sister City Blog.com

scholar on September 06, 2009, at 04:23PM – #4

As this story unfolds as if a final chapter in a book. Things get a little more interesting on Olvera Street. Casa de Sousa being the first of three merchants now on the chopping block. This historic local seems to have all the ingredients of the American Civil War.

It has been reported that Casa de Sousa is holding on strong in the midst of a turn of events that may help prove their case to the people, constuants as well as their landlord. In the same El Pueblo commission meeting that Casa de Sousa received no benefit of the doubt in these hard economic times with regard to the many offers having been made to the management for old rent the management has continued to decline as well as new rent with a new business plan.

What is really going on here. In the last commission meeting the donkey guy Hernandez was given the benefit of the doubt for rent repayment plan instead of eviction. A third merchant now on the chopping block of all people to fall behind in his rent Camacho's Inc. Thats right Andy Camacho up for eviction for the Simpson Jones Building. Way to take one for the team Andy. This weeks commission meeting will decide what to do more likely in favor of Camacho's Inc. A good example of the commission playing favorites to Andy Camacho and his new idea for a coffee house. But when it comes to the Sousa family and their 77 year old legacy, the city may go in favor of Andy Camacho. After all at the end of the day it's about how much money a Olvera Street Merchant can contribute to the next candidate for city council or even for the mayor. I guess the city officials could just turn a blind eye on the more than $16,000 dollars owed by Camacho in rent speculated by some.

So in these hard economic times its OK to give the Donkey guy Hernandez another chance. It's OK to give Andy Camacho a chance to catch up on his rent when he has not even opened yet? But Casa de Sousa? Well where is the justice, equality and fair due process for the Sousa family. L.A. City must have a good reason for this and the tax payers deserve to now why. Question everything happening on Olvera Street and you will have to demand answers. Or just show up to the commission meetings. Remember to bring your "Guide to El Pueblo for DUMMIES". Your gonna need it constituants!

Vivien on September 08, 2009, at 10:07AM – #5

Olvera Street merchants, now in third and fourth generations, are not to blame for the City's handling of the El Pueblo/Olvera Street area. Take a look at the facts.

It is a little known that the El Pueblo Department, created several years ago to be a more sensitive and supportive environment for the cultural, historical and commercial area, spends more money per year, ($4.1 million annually), than any other El Pueblo/Olvera Street manger has spent during its 80 year history. While Olvera Street and its surrounds used to be self-funded, it is City management, exclusively, who have dipped into taxpayer dollars, year after year. With only 50% of the Monument rented, and 90% of its operation outsourced to General Services at a cost of $2.1 million, no one knows where all the money is going! On top of the $2.1 mil for operations, El Pueblo spends an additional $1.6 on its managers. With two main bosses who simply oversee the operations contract with General Services, and who earn as much as many other GM's in the City responsible for much larger operations, where's the economic efficiency? As all other department budgets look to cut the fat, El Pueblo administrators increased 13.4% over last year, where are the mandatory cutbacks that recognize the deep recessionary economy here?

In truth, the Olvera Street merchants are being asked to carry the water for other non-rent payers in the area and to support a top-heavy and under-monitored administration.

The recent audit that found Olvera merchants paying less than market rates, didn't even comment on the escalating expenditures of the El Pueblo department, including a 250% increase in requests of the general fund. In a spin-doctor's paradise, the audit took aim at bidding out all of the area's Mexican cultural events like Blessing of the Animals and Las Posadas, as it cast blame on the rents being paid by the merchants. The audit had a strong political agenda, but whose? Does someone want to starve out the original merchants? Try a few wealthy local developers who raise money for the City's elite and you'll begin to get the picture. This would not be the first attempt to take down the Olvera Street icon in favor of hotels and posh eateries that only LA brass can afford.

The former city attorney, Rocky Delgadillo, has maintained that a majority of Olvera merchants are on a month to month contract that dates back to 1985 while most other tenants of the City enjoy a standard 5+5 year lease. If this is true, most Olvera merchants have been on a month to month rental agreement for over 24 years, unlike any other tenants in the City of Los Angeles. How could the area merchants possibly enhance the aging facilities or invest further in the area with a 30 day rental agreement? And what happened to the long term lease adopted by City Council in 1998 for all merchants with the requirements for a parking lot and regular rent increases? Ask the developers who work closely with City officials in mandating this fiasco.

Truth is, there has been absolute negligence of Olvera Street by local administrators, the last of whom were escorted out in handcuffs. It was a pipe-dream to ever believe in the support and nurturing this department was created to provide.

The City Council of 1998 approved a 30 year lease promising a parking lot in exchange for rent increases from the merchants. Problem is the funds were lent to another downtown gem, the Kodak Theatre, and have never returned to Olvera Street. That's why rents haven't increased in years, though what is paid today is very close to the City's forecasts. The last rent survey used by the City to determine market rates on Olvera Street included the Union Bank building. The Union Bank building is a 40 story skyscraper, absolutely turn-key for its tenants, with professional management. Someone needs to tell me how this building, with its posh management, compares to our 150 yr. old facilities led by government's business-unsavvy yet highly paid bureaucrats. Let's swap managers and see how long the Union Bank tenants remain solvent.

Rocky Delgadillo signed off on several Olvera leases during his early tenure then withdrew the lease offer in 2006, even though it had been adopted by the City Council and pre-dated his city tenure. We ask ourselves, under what authority did Rocky deny the merchants their leases? Merchants went so far as to hire an attorney to demand their lease to which Rocky responded that they had no more rights to the lease and were actually on a continuing month to month contract. This flip flop of Mr. Delgadillo from signing off on the lease to now considering it a bad deal for the City caught everyone off guard. Of course it was a bad deal for the City because the City didn't implement any of their agreements in the lease, the biggest of which was the construction of the multi-level parking lot, the funds of which have long since vanished.

So the whole situation is a mess and the City, through it's former attorney, have tried to wash away their obligations by taking aim in the press at the merchants.

While the Councilman of the district says he wants the area supported by local administrators, in spite of a $4 mil budget, there are NO FUNDS for promotion or marketing and parking rates have been raised to unprecedented levels making the area inaccessible to many of its long term visitors. With proposals for bidding out the Mexican cultural events sponsored by the merchant families for 80 years, the City is trying to undue every commitment and everything that has made Olvera Street successful over the past 8 decades. This while they try to garner rents paid in top notch malls from merchants in 100 square foot stalls and 150 year old deteriorating buildings. Right.

Before we compare the rents on Olvera Street to facilities like The Grove at Farmer's Market, let's compare promotional revenues, condition of the buildings and City managers versus private sector operators to see how it all stacks up.

City government needs to acknowledge their role in the mishandling of these matters and reconsider its management that is driving a very expensive stake through the heart of Olvera Street as it entertains proposals from developers to rob the City of any historical or cultural vestiges.

scholar on September 08, 2009, at 10:08PM – #6

THE OLVERA STREET MERCHANTS HAVE DEFENDED THIS AREA FOR YEARS, AND WE AREN'T GOING TO STOP NOW.

Stop being so dramatic. on September 09, 2009, at 08:39AM – #7

The deadbeats need to face higher rents and make their payments on time just like EVERYONE ELSE, or face eviction. End of story.

This is the modern world we live in; like it or not. Give up clinging to the third-world mentality. There are others who WILL pay who are just waiting to get into that property.

jc on November 19, 2009, at 11:40AM – #8

this is totally mean what the people are sayiny. this is the best place. people commenting don't know anything. i am the doughter. sooo people blogging, get your story straight!