The Boutique Hotel to Nowhere, Part 2

Warning: Conceptual only, not to be taken seriously!

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.

That can’t be good…

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:

Read. Weep.

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.

dick-jones
More work ahead…

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.

The Boutique Hotel to Nowhere, Rehash, Part 1

Domer-Decorations
Hitching to Desert Center

2026 is here, portending all sorts of fun for Fullerton. Some haunting spirits will have to be propitiated, among them is the so-called “boutique hotel” fiasco, one of the parting gifts of former incompetent City Manager, Ken Domer left for his ultimate successor, Eric Levitt.

You will recall the project: a small, high end hotel at the train station, that over the years morphed into a massive housing project attached to it.

Grab it and consume it as fast as you can…

Domer was the facilitator of the stupid concept cooked up by our former Mayor-for-Hire, the lobbyist Jennifer Fitzgerald. His sole reason for being City Manager, in fact, appeared to be his willingness to enable Fitzgerald’s wish lists into fruition.

And Domer was the fellow who let the project move along, during the gestation – recommending a non-bid, exclusive negotiating agreement with Westpark LLC, a company that couldn’t build a birdhouse. Domer was fired in the spring of 2021 but his boutique child, an infant that should have been strangled in its crib, lived on, proving that make-work ideas supported by staff never die.

Looks good to me…

The years passed and Levitt became godfather to Domer’s baby. In this time his staff had uncovered a new and willing partner – TA Partners. Enter Johnny Lu and Larry Liu, two con artists who were already getting deep into debt and fraud elsewhere in Southern California.

Why is Johnny smiling?

By the end of 2022 the real disaster struck: on December 20, 2022, the City voted to approve an agreement to deed over its property, the value increased tenfold, without an approved project even in place. The supporters? Ahmad Zahra, Shana Charles, and inexplicably, Bruce Whitaker, the latter ignoring any of the warning signs that his instincts should have been screaming to him.

Warning: Conceptual only, not to be taken seriously!

Three years have passed. None of the milestones in the Development and Disposition Agreement have ben met. And nobody is talking about this fiasco, at least not in public. We have all learned that Larry and Johnny have pleaded guilty to fraud; that their project in Irvine collapsed, probably taken over by whatever investment bank was dumb enough to give them a construction loan.

Has the City even contemplated action? No closed session reporting has been forthcoming and no reasons given for why not. FFFF learned that the original Westpark guy, Craig Hostert’s family is suing Larry and Johnny for their hijacking of the project. They must see some sort of asset there. If so they are right.

Despite having failed to meet contractual deadlines, TA Partners owns this 1.7 acre parcel and is presumably paying their property taxes to keep it in the family. And the property has value thanks to a incompetent City Council majority.

They had me at boutique…

The entitlements approved by Whitaker, Zahra and Charles are worth a fortune, and can, with the City’s approval, be assigned to somebody else, a tactic that City bureaucrats have pursued in the past to keep embarrassing projects alive and kicking. But that may not work because only Zahra and Charles will keep voting for this disaster.

This fiasco is now seven years old and if there’s an end in sight, it isn’t even on the horizon.

Boutique Bungling Bears Bounty

And by “bears bounty,” I mean the boutique hotel scam pulls Fullerton into ever deeper shitwater.

By now we all know how stupid, inept, and problematic the so-called “Tracks at Fullerton” has been.

Starting out as a boutique hotel, a dumb idea took on a bloated, lumbering life of its own and has been kept alive through bureaucratic inertia and predictable metastasis.

Hostert

Now there’s a new twist. Word on the street is that the family of the guy with the original brainstorm, Craig Hostert of Westpark Development, is suing the current “developers” TA Partners. You may recall that Hostert is dead. His relatives seem to think that his money men, Johnny Lu and Larry Liu of TA Partners, pushed Craig out of his interest in the project. Johnny and Larry are said to be counter suing.

That can’t be good…

Parenthetically, I might add that Johnny and Larry are no strangers to the legal system, having left a trail of bankruptcies, foreclosures, and fraud in their wake. Fullerton being Fullerton.

Enhanced with genuine brick veneer!

I don’t know what the lawsuits might entail, legally, but due to the incompetent actions of Councilmembers Bruce Whitaker, Shana Charles, and Ahmad Zahra in upzoning the property, there could be a lot at stake. Remember, the City sold Westpark/TA almost two acres of land for $1.4 million (less demolition costs) while making it worth ten times that amount by abusing the allowable density in the Transportation Center Specific Plan.

Right now the City Hall silence remains deafening. We do know the council met in closed session about this awhile back, and still the public remains in the dark. Why hasn’t the City kicked Johnny Lu and Larry Liu to the curb long ago? They were supposed to have performed all sorts of stuff by now. Here are Johnny and Larry’s milestone obligations per the Development and Disposition Agreement, approved at the end of December, 2022.

Read. Weep.

Westpark/TA Partners are clearly in default. Plans submission was supposed to take place in December 2023 – fifteen months ago. Permits were required to be obtained fourteen months ago. Grading was supposed to start eleven months ago. Above ground construction was supposed to start by the end of last October – five months ago. See a pattern?

For some reason TA Partners was given some wiggle room in the actual verbiage of the contract for plans submittal – 240 days which would have been February of 2024, still thirteen months ago, and still a massive default.

Was there an “Unavoidable Delay?” Who gets to know? Why would the City fail to exercise its right retake the property? If you see a councilperson, please be sure to ask. Of course you won’t get an answer as the whole thing is shrouded in Closed Session secrecy. Without any action on the part of Fullerton, the two fly-by-nighters are still in possession of entitlements worth a pile ‘o cash – enough to excite the pecuniary envy of Mr. Hostert’s heirs and assigns.

I get the strange feeling that this latest legal entanglement might have repercussions for any case Fullerton might have in getting rid of Johnny and Larry. It shouldn’t, but it might be cause for staff to continue to string this thing out since it has been such a lucrative toy for Fullerton’s crack “economic development” employees.

Boutique Fun and Games With Johnny Lu and Larry Liu

FFFF has already reported on some of the colorful financial background of Johnny Lu of TA Partners, our City’s stand-up partner on the so-called “boutique” hotel project at the railroad tracks. This hot mess even has a name: The Tracks at Fullerton Station. The development has morphed into a monstrous minotaur by adding approval for a massively dense apartment – an amalgamation which gives us a shocking 130 units per acre, overall.

Well, anyway, we previously shared the news that Johnny was in default on massive construction loans he somehow finagled for projects in Irvine a few years ago. The lender on those has foreclosed on those properties.

That can’t be good…

And here’s some even more recent news. It seems that Johnny has waded out into more legal problems over in LA, according to The Real Deal, a real estate news source. Here’s the thrust of the complaint by bamboozled investors on a “project” at Playa Vista:

The investors — who form an entity called RUC14 Playa LLC — sued Lu, Liu and TA Partners, alleging commingling of funds, fraud and misrepresentation, court records show. Attorneys for TA Partners, which have requested for arbitration in the case, did not respond to a request for comment.

Johnny and his partner, Larry Liu, declared their bankruptcy on the Playa Vista project. But let’s give the misunderstood boys a break. A little contrition goes a long way, right? Said Larry:

“We would like to offer our apology for the non-compliance during project execution,” Liu wrote in the letter. “Self-reflection is needed and I would like to apologize.”

Whatever any of this means to “TA Westpark LLC.,” the corporation that was awarded the Fullerton project entitlements (without any competition) remains to be seen. But now Johnny and Larry have equity – and boy have they got equity; see, Councilmembers Zahra, Charles and Whitaker handed them a bonanza – a plot of land available for hundreds of units – for a mere pittance: $1.4 million less associated costs.

Ms. Charles happened to mention at a council item about raising funds for Fullerton’s fiscal disaster, that the boutique hotel plan was moving along. But there was no mention of the fiscal disaster facing Johnny and Larry Enterprises. Does she even know? Does she understand what is happening? Does she care? Probably no on all three.

The plan here is crystal clear. At this point nobody is going to lend Lu and Liu a bent nickle. But these fine fellows will have entitlements worth tens of millions on this project; a project that never should have happened in the first place – an unsolicited proposal by a local guy who had no chance of building a birdhouse.

This project will be reassigned to a third party, someone the City “business development” expert bureaucrats will be sweet-talked into recommending. And then Johnny and Larry will quietly disappear from Fullerton with millions belonging to us.

Fullerton being Fullerton.

Bungling Boutique Boondoggle Blunders

Some folks have been asking about the fate of the idiotic “boutique” hotel project that had morphed into a hideously overbuilt hotel/apartment hippogriff that is twice the allowable density permitted per the City’s own Transportation Center Specific Plan. Of course the project was never contemplated at all in the Specific Plan, so who cares, right? Fullerton being Fullerton.

In an act of utter incompetence the City actually rushed the approval to transfer of title to the land, before the deal had received final approval. Then they gave it away the land for pennies on the dollar.

Friends may recall our last October post in which we discovered that the new “developer,” one Johnny Lu of TA Westpark LLC, was way upside down on loans he had somehow leveraged on apartment blocks in Irvine and was in default.

You may also recall that Lu started shifting the property to different corporations, the first of which, a Delaware corporation, was non-existent. And just for grins, Mr. Lu changed the property description, too, when he later deeded it back to his California Corporation.

Anyhow, it looks like Johnny has finally created and recorded the appropriately named Delaware corporation in March – only two years too late, but, hey, not bad for Fullerton, right?

There has been nothing but radio silence from City Hall as to the status of Mr. Lu and whether he has met any of the stipulated deadlines in the Development and Disposition Agreement, but as we have learned in the case of the Florentine/Marovich sidewalk heist, contractual obligations mean nothing when the “I Can’t Believe It’s a Law Firm” of Jones & Mayer is your City Attorney. Recently, cluelessly verbose Shana Charles indicated that the project was still alive and well. She didn’t mention Mr. Lu’s financial embarrassment, but then nobody else has, either.

And now for some sadly interesting news. It turns out the original Founding Father of the boutique hotel concept, Craig Hostert of West Park Development – the guy who sold the idea to Jennifer Fitzgerald, Jan Flory, Jesus Quirk Silva, Ahmad Zahra, Bruce Whitaker, et. al. – died in late May.

Hostert

Poor guy. He went to his Reward after getting pushed out of his own scheme, and sticking us with the appalling, metastasized mess the concept has predictably morphed into; showing that once again, no bad idea goes unappreciated in downtown Fullerton. Being Fullerton, of course.

Bungled Boutique Hotel May Be In Big Trouble

Friends probably remember that FFFF has been relentlessly critical of the dubious scheme approved by our City Council to underwrite a downtown boutique hotel and uber-dense apartment project on a parking lot owned by the City and used by Metrolink commuters.

Here’s a reminder: three councilmembers Bruce Whitaker, Shana Charles and Ahmad Zahra voted to sell this property to a developer for a mere $1.4 million (less site material removal) while simultaneously time jacking up the value of the land by approving density 2.5 times the limit specified in the Transportation Center Specific Plan. It was a gift of public funds at least ten million dollars.

Here’s the fun part. The original and completely unqualified baby daddy of the project, Craig Hostert, didn’t have the wherewithal to make the deal. After years of failing to perform on his Exclusive Negotiating Agreement and numerous extensions, Hostert’s West Park Investments, LLC joined its non-existent forces with TA Partners Development of Irvine, Johnny Lu, proprietor.

Mr. Lu, the new face of the project, appeared at council meetings to seal the deal with a ration of gobbledygook bullshit.

Now it appears that Mr. Lu may not have been the best choice of partner according to the Real Deal Real Estate News.

Why is Johnny smiling?

It seems that Johnny has gotten himself in over his head on two projects in Irvine, including second bridge loans that he has now defaulted on. And of course Sunayana Thomas, Fullerton’s crack “business development” director seemingly failed to inform the City Council of Mr. Lu’s impending financial embarrassment, something that should have been revealed in even a cursory perusal of TA Partners’ asset to debt ratio and its balance sheet.

And then, of course there is the problem with the completely incompetent concept of rushing the approval to transfer of title to the land, before the deal had received final approval.

By now the Council has possibly, though not necessarily been informed by the Fullerton City Manager, Eric Leavitt, of the problem, but where does the deal stand? Title to the property has been transferred from the City to and through Lu’s companies*, presumably for the original sale amount. But if TA Partners can’t perform, will the City get its now very valuable property back, or will it be encumbered by bankruptcy receivers? Will the City, in order to save face as it always has, permit Mr. Lu to assign his rights and interests to another party as a face-saving strategy? If that happens, will the original bad idea still go forward, or will the Council approve something even worse as a sop to a new developer so to avoid admitting their horrible mistake in the first place?

You can try asking Whitaker, Charles, or Zahra, the architects of this inexcusable and completely avoidable mess, but don’t hold your breath waiting for a response.

* Topic of future post

“Boutique” Hotel Lumbers Along

Enhanced with genuine brick veneer!

An item on last week’s Closed Session council meeting just caught my eye. The item identified the southeast corner of Pomona Avenue and Santa Fe, location of the previously discussed “boutique” hotel proposal. I last reported it here, when the Council voted 4-1 to let the unsolicited, single proposal issue get a time extension. As usual the lone no vote came from Bruce Whitaker. The July 6th item just says “terms and price” so that it can be hidden behind the Brown Act exemption.

Huh?

When the City Attorney emerged he declared that this harebrained idea was moving ahead on a 3-2 vote to authorize a Letter of Intent to approve a development agreement. Hmm. We know that Jesus Quirk Silva would go for it. After all, he already changed his vote once to move this along – way back in December of 2018 as a parting gift to Doug “Bud” Chaffee. And Ahmad Zahra is always a reliable vote to support some stupid government giveaway or overreach.

Dunlap-Jung
One of them?

So that leaves councilmen Nick Dunlap, Fred Jung and the aforementioned Whitaker. It is really hard to believe that Whitaker would suddenly change course 180 degrees from a previous commonsense, conservative position. Dunlap and Jung have so far shown unusual sales resistance when it comes to ridiculous bullshit so it’s hard to see either one going for this. But obviously, one of the three did. Who was it, and why? We were not told by the City Attorney and the minutes do not include such potentially embarrassing things.

And this will be a giveaway. You and I own that parcel of land that is currently providing popular parking for Transportation Center commuters. What is the land truly worth? If the Council continues on this reckless course to support a massive public subsidy to for an idea that has no basis in market demand, we may never know.

The days of the Fullerton Redevelopment Agency writing checks to fly-by-night developers, scammers, and other corporate welfare queens is over; but the so-called Successor Agency is perfectly capable of handing over real estate and getting nothing in return. And that looks likely to happen as the story of Fullerton’s unsolicited boutique hotel lurches forward.

 

 

What Does The Future Hold for Arnel Dino

In case you missed the 2022 District 3 election for Fullerton City Council, here’s a recap of the results.

Our current incumbent, the self-righteous and condescending gas bag, Shana Charles, got far less than 50% of the vote; the remaining votes were spilt pretty evenly between a guy named Johnny Ybarra and Arnel Dino who had been supported by Fullerton Mayor Fred Jung. Charles was supported by the fire brigands who got her elected.

It’s obvious that the turnout was anemic. That’s an ongoing challenge to candidates; or an opportunity – depending on one’s perspective.

Dino ponders his future…

The word on the Fullerton grapevine is that Arnel Dino wants to give it another go in 2026. If true, he has been super low-profile about it. I haven’t heard a peep out of this guy.

I’m a doctor. I will figure it out for you dummies…

One opponent would be Charles – who has announced her decision to continue her fascinating journey of discovery.

Charles is vulnerable among conservatives – Republican or Independent. Her spendthrift stance on shelling out $200,000 for illegal immigrants’ rent and legal help will be a huge detriment. A year from now, the failure of the $2.3 million Trail to Nowhere will be obvious; the Waste on Wilshire fiasco, the boutique hotel disaster, and numerous other boondoggles will no doubt shine prominently as campaign issues.

Spinning, spinning…

Then there’s the $4000 she and her husband got from the dope lobby during the 2024 campaign in District 4. The dead weight of these albatross neckties is going to be heavy – even for an advocate for public health.

There is no doubt that Fullerton Tax Payers for Reform will wage a well-funded and efficient campaign against her, as they did with Cannabis Kitty Jaramillo.

Will Mr. Dino see an opportunity to give it a try? He is on the Fullerton Planning Commission and FFFF actually gave him and his colleagues a positive nod on the noise ordinance issue. Still, the Planning Commission title may sound nice but it doesn’t mean a lot these days, if it ever did.

So come on, Dino, let us know your plans.

The Return of Jesus Quirk-Silva

Look, I won! No, wait…

Just when you might have felt safe from the re-emergence of the bumbling, incoherent former Fullerton City Councilman, Jesus Quirk-Silva, you might be horrified to learn his political thirst for office hasn’t been quenched. It appears that Quirk-Silva wants to be on the North Orange County Community College Board of Trustees. Observe:

So about a month ago JQS filed the form 501 – the statement filed when you intend to be a candidate.

The OC Dems will no doubt get behind the guy who knows nothing about college except that he somehow graduated from one despite the obvious intellectual deficit. This will be the same agglomeration of Dems who tried mightily to create a council district for the sole purpose of keeping Mr. Quirk-Silva in a council seat.

If somebody wanted to they could make reference to Quirk-Silva’s votes on the Fullerton City Council – like his embarrassing, comical, and sadly disastrous flip-flop on the boutique hotel disaster, although that isn’t likely.

It never says no…

These community college trustee elections rarely cause much of a dust up because no one really cares who the nodding birds are. The most recent addition to this crew is a guy named Mark Lopez, an unethical bozo who tried to be on the Anaheim School Board at the same time and who got kicked off the latter.

Official current pic of Jeffrey Brown. From thirty years ago.

Meantime, I should note there is an incumbent for the job, Jeffrey Brown who has been on the Board for well over twenty years and may be one of those people who love their little sinecure and will fight to keep it.

And that’s where I put the sign in the back of the car…

I would be remiss if I didn’t mention a rumor circulating that the seat is now coveted by none other than Paulette Marshal. Yes, the same person whose lawsuit against Tim Shaw caused the Dems to lose their only seat on the OC Board of Education; who tried and failed as a candidate for that job twice, pretending to be a teacher; and who was previously busted for stealing campaign signs from private property during a phony carpetbagging scheme to get on the Fullerton City Council in 2018.

Oh, Paulette, you’ve done it again…

She may look like death warmed over, but her political ambition may not be dead.

Paulette Stolen Sign
Pilferin’ Paulette hard at work…

It would be safe to say that nobody wants Pilferin’ Paulette around anymore, hovering in the background like the chorus in a Greek tragedy. But this miscreant has shown she’s willing to sink a big chunk of her kid’s inheritance into getting a political office – any political office. Well, nobody except Paulette, and her senile, corrupt husband, County Supervisor Doug “Bud” Chaffee.

Lies, Damned Lies, And No Statistics

Zahra-Busted
Time to come clean…..

One of the curiosities that emerged from the Bushala depot lease hearing at Tuesday’s Fullerton City Council meeting was a letter from the Bushalas’ lawyer demanding Councilman Ahmad Zahra to recuse himself. Why? Because he is biased against them, as indicated by numerous derogatory comments about their supposed negative influence on the Council majority. Here’s the letter, sent to Zahra on Tuesday afternoon.

At the outset of the meeting Zahra innocently claimed his impartiality and lack of animosity to the Bushalas, a claim that his past behavior has shown to be false, and that his behavior that very night was to belie. Anyone watching the charter city hearing, and watching Zahra’s ten minute meltdown, knows this.

Zahra began to question staff about all sorts of details in the existing and proposed lease amendment; about staff’s procedures in negotiating, etc. a strategy never before displayed by Zahra when it came to dozens and dozens of previous lease agreements he approved on the nod.

Zahra’s behavior didn’t escape the notice of two public commenters who took him to task for his blatant bias, observing that he never before showed much, if any interest in the details of lease agreements set before him, most of which were passed on the consent calendar.

That can’t be good…

Later, Zahra felt the need to defend himself. The subsequent speech explained his constant attention to details and outlined his incredible diligence looking out for the welfare of the “people.” Mayor Jung felt constrained to point out the disastrous “boutique hotel” vote of Zahra and Charles, in which conmen were essentially the beneficiaries of a massive gift of public funds – obviously no due diligence had been performed by either Charles or Zahra before they voted for the boondoggle.

“Tam. Smell that smell…

My own favorite Zahra dereliction was the proposed “fish farm” in which a closed public park was to be illegally converted into a private event center with a fish tank in the middle. Remember? The unsolicited proposer had no money to pay rent or even possessory interest tax, and no collateral to get a loan; there was no parking; instead of thinking about the impact on the neighbors, Zahra even dragged up some of his toadies to gargle about trees and green space, not noise and lack of parking. All the details would be figured out later, said Zahra. The Big Idea, not the details were what was important.