The Boutique Hotel to Nowhere, Part 2

The other day I described the history of the idiotic Boutique Hotel – a notion to build a high-end hotel on the site of the East Santa Fe parking lot at the Depot. The idea was, and is so stupid that it astounds any commonsensical thinker. And even worse, as the “unsolicited,” exclusive deal became less and less likely, the concept became bigger and dumber. The approved plan more than doubled the density allowed by the Transportation Center Specific Plan.

City projects are virtually immortal if they look like work for eager “economic development” bureaucrats or look like they can be sold as accomplishment by people like Ahmad Zahra and Shana Charles, who think (or pretend to think) that their gullible followers can be fooled into believing something good is happening.

Except that nothing good is happening. Our City officials increased the value of the property ten-fold through entitlements, but sold it for its original value – a staggering subsidy of at least ten million bucks. And that subsidy was handed to TA Partners, a flimflam operation fronted by a couple of con men, Johnny Lu and Larry Liu, at the end of 2022.

In the three intervening years nothing has happened so far as the public knows, even as TA Partners’ legal and financial woes have become public; woes that certainly should have been known by our economic development experts in City Hall prior to signing a contract, but weren’t. Why not? And why is the project at least two years behind schedule? Don’t ask. Fullerton being Fullerton.

The land was deeded over to Johnny and Larry without even an approved set of conceptual plans. But the deed was encumbered after a fashion with development and construction milestones.

And here’s the Schedule of Performance mentioned above:

I don’t know what sort of plans have been submitted, if any, but I know that grading should have started at least 20 months ago and hasn’t. And look at that project completion deadline – a Certificate of Occupancy by 10/21/26. That’s only nine months from now. As this fiasco looks worse and worse, not a peep from our friends at Fullerton Angry and Fullerton Transparency about the initial giveaway or the state of the schedule. They have more important if less expensive “scandals” to rant about.

Of course the paragraph tacked on to the Grant Deed, above, describes the covenants attached to the land, but that’s it. Other language talks about the City’s right to legal recourse if the conditions of the covenants are not met. That’s pretty toothless since lawsuits are always possible; there is no mention of Johnny and Larry surrendering their new asset, an asset whose entitlements could still make it worth a fortune. Why the City hasn’t already initiated legal action is a mystery worth speculating upon.

We all know that when it comes to Fullerton redevelopment boondoggles, nobody ever takes responsibility for failures. It’s just not good form to hold the masterminds accountable. Often it’s not enough to just keep quiet; sometimes staff actively tries to keep the boondoggle gasping for air so it can be reassigned to some new front man. That’s what I think must be happening now.

By the way, a majority of the current City Council has not voted for this hot mess. It’s a legacy mess.

It’s way past time learn what is going on, to find out what the status of the Boutique Hotel and Apartment monster and to find out why the City hasn’t pursued legal remedy to protect our interests.