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.

 

 

Meet Ada Briceño

Ada Briceño, recently retired head of the Democrat Party in Orange County is going to run in 2026 to replace Sharon Quirk in the State Assembly. At least that’s the story she told Voice of OC publisher Norberto Santana. He mentioned it in a story about the new Chairpersons the OC Dems and Repuglicans.

Don’t worry. The stay in jail was short…

Ada’s back ground is one to give pause. Her day job is activist and agitator for Unite Here 11, a hotel worker’s union. Her activities are mostly centered around the horrors perpetrated by the Anaheim Resort hotels. This requires a lot of theater, of course, like getting arrested protesting Disney – that sort of thing.

Where did our money go?

She was the mastermind of the recent and idiotic attempted recall of City Councilwoman Natalie Rubalcava in Anaheim last spring. Merit of the charges aside, it was bad politics and a huge waste of her member’s dues. Even if the recall had succeeded (it didn’t) the Council there would have replaced her with somebody just as bad for Briceño’s members. Hundreds of thousands of dollars flushed down the drain. I presume it was an ego thing, mostly.

Less than a year before, Briceño’s union sponsored Anaheim’s Measure A, a $25 per hour minimum for hotel and event employees. The measure went down in flames by a 2-1 margin in October 2023. More hundreds of thousands wasted on the campaign, and the taxpayers picked up the tab for the special election.

Here in Fullerton her folk turned up to protest the boutique hotel/monster apartment, not because it’s a terrible project whose front men are scam artists. No, it’s because the project doesn’t include enough subsidized units for her members to live in.

Ada n’ Ajay celebrate…

If you’ve been following FFFF recently you’ll also know that Briceño must have known about the scam candidacy of Tony Castro in 2022 that deprived 5th District voters of a home-grown Latino representative. What her role may have been in the 2024 creation of the Scott Markowitz campaign fraud and the perjury therein remains to be seen, but her henchman and former OCDem Executive Director, Ajay Mohan, was involved in both.

But I checked all the right boxes!

Whether Ada knew about Markowitz or not she was all in for the deplorable Vivian “Kitty” Jaramillo, granting an early party endorsement without talking to the eventual winner, Democrat Jamie Valencia. There’s another black mark.

I can’t imagine what Briceño thinks her base would be. Quirk has been a fairly moderate Democrat, suitable for this district. She’s cozied up to the cops and established interests. That’s not Ada. And Briceño has zero name recognition in the district outside of central Anaheim where her reputation is not favorable. She’s made a lot of enemies in Anaheim. Enemies with a lot of money. She would have to rely on huge infusions of cash from the more “progressive” unions and from friends in Sacramento. Of course her tactic would be to frighten all other Dems away and waltz into office.

I don’t even know if she currently lives in the district.

Well, maybe this aside in a Voice of OC article is nothing more than a trial balloon. The 2026 primary is still a year away.

Welcome to the No-tell Hotel

One thing you can always count on in Fullerton elections is that concrete, real issues will never be discussed. You’ll hear mostly generalities about this or that topic. Even roads and taxes melt away in general promises and vague hand-wringing. But, when it comes to specific projects with all sorts of facts and figures involved, you can forget it. A charming characteristic of all local elections, and especially in Fullerton, is that people aren’t elected on their knowledge of anything, but, rather on their acceptability as wise people who will do the right thing given the opportunity.

This is all nonsense, of course. The electeds, knowing nothing are in no intellectual position to push back on the lamest of lame ideas that percolate through the “experts” in the bureaucracy. Not knowing and not learning and not working are the natural siblings of the councilmember’s natural tendency to acquiesce to City Hall staff anyhow. It’s easier just to attend ribbon cuttings and golden shovel ceremonies, I suppose.

Enhanced with genuine brick veneer!

And so it is that zero attention has been given by anybody (except FFFF) to various nonsense projects, the worst of which is the so-called boutique hotel project that started out as an idiotic scheme and naturally morphed into the worst kind of Redevelopment boondoggle. It even has a stupid name: It’s called The Tracks at Fullerton Station.

I’m not telling the truth and you can’t make me…

You may recall that the hare-brained idea was hatched by your former Mayor-for-Hire, Jennifer Fitzgerald who pushed a non-competitive agreement with some local dude who couldn’t build a birdhouse. Because the City had to declare the land on which the thing was supposed to sit as “surplus property” a deadline had to met to dodge a State law requiring first right of refusal to low-income housing “developers.”

Rather than shit-canning the whole thing, boobs Bruce Whitaker, Ahmad Zahra and Shana Charles approved of the project and the City actually deeded over the land before any agreements were in place. Pretty amazing, huh? Their convoluted reasoning was so dumb it doesn’t even deserve a description. That was December 2022.

They had me at boutique…

The even bigger problem was that by then the original guy (now deceased) had been pushed out and a whole new partnership had taken over. The new players were a pair of bums – Johnny Lu and Larry Liu who had a record of fraud, embezzlement, and bankruptcies in their wake, and creditors foreclosing on them. Why Fullerton’s crack economic development team and City Attorney failed to pursue even the slightest investigation of Lu/Liu’s record like FFFF did, has never been discussed. And it never will be, Fullerton being Fullerton.

I don’t know the current situation with this project. Two years have passed. Johnny Lu and Larry Liu had many milestones to accomplish certain actions per the agreement they finally signed. Did they? Who knows? Not the public, that’s for sure. Obviously, no one in City Hall wants to talk about this vast embarrassment, and an insecure council isn’t making them. And naturally, the Fullerton electoral process doesn’t discuss such things – bad form to discuss City failures, you see.

But the public has a right to know the whole story, because in the end, the entitlements granted to Lu and Liu are worth a fortune; even worse, the sales price of 1.4 million, less site clearance, is a tenth of the market value the City created with those entitlements. And the new density with hotel and with the new apartments Liu suckered the City into approving, just to keep the mess alive, is two and a half times the density the Transportation Center Specific Plan allows for housing. Go figure.

The mileage is terrible and the wheels are bald…

It’s also critical to remember that in Fullerton projects take on a life of their own through institutional inertia and the human instinct to dodge responsibility whenever possible. The Fullerton Clown Car has never had a rear-view mirror.

What is Fullerton’s Future?

Nurse Jamie still looking good…

If the current situation in the District 4 election remains unchanged, Jamie Valencia will be the newest member of the Fullerton City Council.

Dunlap-Jung
Anyone else?

Will she, like her soon to be predecessor Bruce Whitaker, form a reliable majority with Nick Dunlap and Fred Jung? I don’t know. But supposing she will, it’s fun to speculate on what issues, if any, could be in the offing for Fullerton’s future.

Domer-Decorations
Hitching to Desert Center

Remember, Friends, that Dunlap, Jung and Whitaker have never really bucked City Hall bureaucratic authority, with the singular exception of getting rid of hapless City Manager, Ken Domer, and that happened after four or five months of dithering.

It’s a total waste of money, but it sure is short…

Would a new council majority be willing to take on any sort of real policy direction? Would it be willing to reverse awful decisions made previously? We may consider such City Hall monstrosities as the Walk on Wilshire and the equally stupid Trail to Nowhere as projects crying out for their plugs to be pulled. What about the “boutique” hotel that morphed into a monster, high density boondoggle, whose “developer” has a series of bankruptcies and judicial losses to his credit?

Still crazy after all these years…

What about Mario Marovich’s “bump out” building addition, a theft of public property over 20 years ago that still squats there on the Commonwealth Avenue sidewalk, despite an agreement with Marovich that should have gotten rid of it 16 months ago?

Business is booming…

Hey! What are we going to do about the public money drain known as Downtown Fullerton? Anybody willing to discuss a bar tax on the people who have been making tens of millions off of us over the past 20 years?

It’s not a cliff dwelling. We have indoor plumbing!

And then there’s the deplorable “6th Cycle Housing Element” to the Fullerton General Plan, a program of mass housing mandates that, if effected, would destroy the City. SO far the Council has shown no sales resistance to the idea of 13,000 new residential units, even as their staff has cooked up a plan for 30,000.

Are there personnel changes that might happen, that ought to happen? Will there be new policies demanding accountability by our well-paid and benefitted staff? Would a new council majority put a halt to the staff penchant for drumming up Astroturf support for its boondoggles?

dick-jones
Staying awake long enough to break the law…

And let’s not forget the good folks who make bank on us dispensing the worst legal advice imaginable over the past 30 years without any accountability for losses, bungling, conflicts of interest; yes, the I can’t Believe It’s a Law Firm of Jones and Myers who oversaw and vigorously pursued the lawsuit against Joshua Ferguson, David Curlee and the FFFF blog itself.

Is change coming? Anything is possible, I suppose, but this is Fullerton, and Fullerton, being Fullerton, no idea is too stupid to die.

And of course Cannabis Kitty Jaramillo could be the beneficiary of her followers’ petitions to the Almighty for the “good guys” to win. In which case, other sorts of changes will be coming, none of them good, which would be the subject of another post.

In the meantime, let’s go ahead, Friends. Let’s indulge ourselves in speculation, and even more importantly, sharing what we think are good ideas.

Happy Thanksgiving, Friends

Here is a re-print of as FFFF Thanksgiving message from way back in 2011. There is no mention of downtown noise bungles, Trails to Nowhere, Walks on Wilshire or boutique hotels. Bankhead and Jones are long dead. The Recall a distant memory. However, the message is still very pertinent, and it’s way easier to reproduce an old one than come up with a new one.

As we pause today to give thanks for whatever we have to be thankful for, please consider how fortunate we are to live in a nation where freedom of speech actually means something.

This blog has never abused that basic right. We are abusive, rude, enlightening, abrasive, endearing, funny, not funny; we are free with our opinions, but never make things up. And we always remember what Dick Jones, Don Bankhead and Pat McKinley do not: that we derive the right from ourselves, and not from the government that would make us fill out a little blue card to speak to them.

We have been accused of being angry. Hell, yes we’re angry: as our elected representatives cut ribbons and hobnobbed at Chamber of Commerce mixers and rubber stamped every idiocy put in front of them, our city (ours, not theirs) was turned over to a gang of grifters, liars, thugs, pickpockets, perverts and killers.

These same buffoons have turned downtown Fullerton into a urine-soaked, booze addled free-for-all upon which our city council unleashed a band of uniformed goons hardly better than the low-lifes they invited into our city.

They have given their campaign contributors free land and even public streets upon which to erect the overbuilt stucco’d monstrosities that have swallowed up the historic downtown. Are they even ashamed? Hell, no, they are proud of what they have done and apologize for nothing.

Yes, there is anger; yet, anger tempered by hope. Hope that with a clear, sharp message Fullerton can be relieved of the dead hand of an ancient and corrupt regime. That message of hope is being delivered by the Fullerton Recall campaign.

You are all welcome to share that hope. And be assured: the winter of discontent will give way to a new year and spring of accountability and responsibility on the part of Fullerton’s elected representatives.

The Morning After Pill

The results of the November 2024 Fullerton elections are almost settled.

School bonds L and N passed comfortably. And why not? The districts used your money to educate you, and the beholden contractors, trades, architects et al. spent $300,000 to put us all farther into debt. Yea! Property taxes and rents and the cost of commerce are going up. But, hey, it’s all for the kids, right?

The designated driver is on the way…

In the City Council 2nd District election, Mayor Nick Dunlap pummeled the old warhorse, Jan Flory, whose try at a 4th time around the track came out of the gate without a rider. The result so far is a massive 28 point victory.

There seemed to be some confusion…

In the 1st District, incumbent Fred Jung walloped a guy named Matt Truxaw, who can now retreat back into the murky obscurity from which he was trolled by Ahmad Zahra. This one wasn’t close, either – a 44 point gap

Nurse Jamie looking good…

The 4th District is close – real close. Newcomer Jamie Valencia leads OC Dem Central darling Vivian “Kitty” Jaramillo, a woman whose candidacy was so shaky the Dem Party created a phony non-Latino candidate to help her out. Right now the difference is about 130 votes in Valencia’s favor. Can late mail-in ballots save Kitty’s litter? We’ll probably know by the end of the day. Linda Whitaker, who didn’t seem to campaign at all finished a distant third. But we see you there, Scott Markowitz, the perjurer set up to help Jaramillo. He has 766 votes right now, enough to suggest that his phony candidacy could be considered to be an effective element in the election. Cause for legal action? That would be fun.

The anointing oil was greasy and left fingerprints, and didn’t take…

A Valencia victory would certainly be the bitterest pill for Ahmad Zahra and Shana Charles and all the other Dem small fry like Sharon Quirk and Josh Newman. More importantly, it would solidify a common sense approach to the stupidity and turbidity of City Hall inventions like the Trail to Nowhere, the Wank on Wilshire, the boutique hotel disaster, etc. Even more significantly it will affect the issue of liberal marijuana dispensaries in Fullerton – Zahra’s pet cause.

The Fullerton Observer Sisters can be counted on to bemoan a Jaramillo loss and blame evil developer influences for having the temerity to tell the truth about poor Kitty.

Looking Heavenward for help…

Speaking of Newman, he is currently losing his State Senate job to the dopey librarian from Irvine, Steven Choi, for which we would be eternally grateful if it holds. He would leave a ridiculous, gerrymandered district he couldn’t win as his lasting legacy. He’s 14,000 votes behind, which is a lot, but of course late ballot counts could change that over the days ahead – like they did for him in 2016.

The power couple looks a lot less powerful these days…

Quirk won as expected, but with a Jaramillo loss and the possible defeat of her hand-picked elementary school board candidate, Vanesa Estrella, she may have some political throw-weight problems, especially in a run for County Supervisor in two years. But that school board election is close. Incumbent Leonel Talavares is only ahead by 46 votes this morning.

Bye, bye, Sugar…

Another bright note is the victory of some guy named James Cho in another elementary school board race. He crushed forever incumbent Hilda Sugarman, and good riddance there, too. There may not be much of a practical difference but cleaning out the cobwebs is always a good idea.

Fall Elections Draw Few Contestants. So Far.

In five days potential Fullerton City Council candidates for Districts 1,2, and 4 will be able to “pull” nomination papers. I don’t know why the phrase is “pull papers” but that’s what they call it.

At this point you can only tell who’s running by those who have created candidate committees. And that’s a short list, indeed. Committees are listed on the City Clerk’s webpage, here, under disclosures.

Dunlap-Jung
Anyone else?

In Districts 1 and 2 only the incumbents Fred Jung and Nick Dunlap have committees. This is not unusual as incumbents are hard to beat, but usually some brave souls sign up. Of course you don’t need to have a committee unless you plan on raising money above a certain threshold. I believe it’s a thousand bucks, but don’t quote me on that.

She wants what you have.

In District 4 there are two candidate committees on record. As previously noted one is for retired City employee Vivian Kitty Jaramillo who apparently used to write parking tickets back in the day.

Two Whitakers for the price of one…

The other candidate is Linda Whitaker, wife of outgoing councilman Bruce Whitaker. Neither of these candidates has any experience as an elected person, although Jaramillo has run previously and lost badly when council elections were held city-wide. She was subsequently party to a lawsuit to force district elections where she must have figured she has a chance of winning. She’s the Democrat anointed candidate and is supported by the Ahmad Zahra and Shana Charles, our megalomaniacal and dingbat councilpersons, respectively.

Jaramillo would be a very poor choice as a vocal tax proponent and the beneficiary of City CalPERS payments. A win by her would create a new council majority run by the manipulative Zahra. Ms. Whitaker would probably be better on some revenue raising issues, but some have suggested that she is the moving spirit behind her husband’s disastrous votes on closing Wilshire Avenue for the benefit of a few restaurants, and the support of the nonsensical “boutique” hotel. I don’t know if this story is responsible, but the votes are testament to exceedingly poor judgment. She might also be inclined to form a majority with Jung and Dunlap as her husband has done.

It remains to be seen if either Jaramillo or Whitaker intend to run vigorous campaigns and how much money they can raise to do it.

So far nobody else has shown interest publicly – yet. The deadline to return papers to the City Clerk is August 9th – only a month away unless an incumbent pulls out. Then the period is extended 5 calendar days.

It would be nice to see somebody else pop up to run in the 4th District, but time is running out fast.