Brazilian Church Hoping to Purchase 1.5-Acre Downtown Lot for $12.5 Million
Eric Richardson / blogdowntown
Universal Church of the Kingdom of God is under contract with Meruelo Maddux to purchase this 1.5-acre parking lot at 915 S. Hill for $12.5 million, but only if a bankruptcy judge approves.
DOWNTOWN LOS ANGELES — One of the world's largest—and most controversial—Pentecostal churches, the Universal Church of the Kingdom of God has operated a branch Downtown for more than a decade, first in the Million Dollar Theater and then more recently at 7th and Broadway in the State Theater.
Despite that, the church operates below the radar of most in the neighborhood.
That could change if Universal Church is able to go through with plans to purchase a major piece of South Park land for $12.5 million.
The site at 915 S. Hill is owed by Meruelo Maddux, at one point Downtown's largest landowner. The company has been navigating bankruptcy proceedings since September of 2009. It has since sold off a number of assets, including the 35-story Watermarke Tower for $110 million in 2010 and the 1907 rail depot that houses architecture school SCI-Arc.
Universal Church was founded in 1977 in Rio de Janeiro, Brazil. Today it operates in more than 170 countries.
Throughout, the church and its founder, Bishop Edir Macedo, have been a source of controversy. A 2009 investigation in Brazil accused the church of siphoning off billions in offerings to buy jewelry, property and cars. Macedo was imprisoned for 11 days in 1992 before tax evasion charges were dropped. Multiple governments have investigated the church's operations.
Still, that has done little to hamper the organization's growth or its appetite for big projects. In 2010, the church received approval to build a $200-million replica of Solomon's Temple in São Paulo. The structure, now under construction, will seat more than 10,000.
Locally, the Spanish-language Iglesia Universal opened services in 1993, meeting inside the Million Dollar Theatre at 3rd and Broadway. It moved to the 2,500-seat State Theatre at 7th and Broadway later in the decade.
It remains to be seen what the church would build if it is able to acquire the 1.5-acre site at Olympic and Hill. Standing in its way is the U.S. Bankruptcy Court, where lawyers on all sides of the Meruelo Maddux case will head on June 23. The company is seeking permission to sell $92.8 million in property, including Union Lofts at 8th and Hill. That property would go to Franklin Properties, LLC for $28 million.
downtown vibe on June 14, 2011, at 01:09PM – #1
Over four decades of community redevelopment downtown and this is what we get?
downtown vibe on June 14, 2011, at 03:17PM – #2
According to Wikipedia:
Charges of fraud
According to the Brazilian press, a judge has accepted prosecutors' claims that the founder of the Universal Church of the Kingdom of God and nine other leaders took advantage of their position to commit fraud against the church and its followers. Prosecutors accuse the leader of the church, Bishop Edir Macedo, and nine other church leaders of laundering more than US$2 billion in donations from 2001 to 2009. It is believed through federal government reports that the money that is given by the followers is gathered, used and placed in private banks in both New York (Via Invest Holding, a private lending bank) and London. The money is then sent through Cable Invest, a private bank located in the Cayman Islands. Finally it is sent to Brazil though Brazilian lending companies "Cremo" and "Unimetro", lender banks of which then are in charge to split the money to Rede Record (UCKG owned television network) executives who then supply more money to UCKG officials.[22]
Ken Hall on June 14, 2011, at 10:07PM – #3
This is horrible...isn't there some kind of zoning law that would prohibit them from building a church on the property?
David McBane on June 14, 2011, at 11:34PM – #4
Ken Hall - It's even worse - zoning laws have little affect on churches because of the 1st Amendment.
I completely agree that this is horrible. This will destroy the potential for the rest of the block.
Bert Green (@bgfa) on June 14, 2011, at 11:55PM – #5
Maybe they are not interested in building a church, maybe they just want to invest in real estate. If so, this land would be a great investment.
downtown vibe on June 15, 2011, at 02:13PM – #6
Bert is right,
They are probably just interested in "investing" in real estate.
Real Estate is a great place to launder money. Why do you think the drug dealers have been buying up downtown land for 40 years? If they are lucky, they can pay off a planning commissioner and cash in on a big development project.
I bet the church leaders will get a very nice kickback from the seller for overpaying for this land during a recession. The seller can just open up an offshore account for them in the Caymen islands. Maybe $1,000,000 each for using the Church funds???
Thanks Eric for giving all of us a heads up.
Brady Westwater (@bradywestwater) on June 17, 2011, at 09:31AM – #7
Since their lease will be ending at the State Theater, they need a new venue.
Jasmijn on June 20, 2011, at 11:49PM – #8
Hmmm, I've been meaning to go listen in on one of the sermons purely as a way of getting to see the inside of the State Theater. Guess I'd better hurry up with that.
BTW, given how many churches used to be in this general area, only to disappear over the years (Eric did a series of columns on them, http://blogdowntown.com/t/churches), it amuses me to see there's one coming in now.