Lessons From History

• Some of the points brought up recently during CAC meetings made me realize I needed to know more about Bisno the developer. So I've spent this time doing lots and lots of research. I found things which made me realize even more why we need to come together as a community and make our needs known on this project.

• Some of you R-1ers might want to get some dictionaries handy as I will be using words with more than two syllables and discussing concepts and theories which might be a little complex for you.

• Housing is demand-driven. Yeah, yeah, I can already hear the protests about speculative housing built during dramatically rising real estate markets. You know, you're right, but you're wrong at the same time. Granted there is speculative building that occurs. But guess what? How many of those houses stay vacant? Now think before you answer.... Sure, they might not sell at what the original builder thought he could get for it; or for what the "investor" thought he could flip it for. But still, they get sold or rented. And furthermore, that housing is a fraction of the housing constructed to meet demand.

• Southern California, specifically the Riverside-San Bernardino and Los Angeles-Long Beach areas, hold the 5th and 6th spot nationwide. That equates to more and more people coming here and more and more housing demand each year. Think about that for a bit while I digress into a couple lessons from history.


¤¤ Luddites

• The Luddite Movement began in 1811. They opposed technical progress and technical change. For a short time they grew popular, but they lasted only a short time and today they are remembered only in history books.

• Why weren't they successful? Mainly because they opposed an unstoppable force - modernization. A force which held the promise of the greatest good for the greatest part of the community. Kind of like the R-1 gang trying to hold back the tide of housing construction in the metropolitan Los Angeles area. Exactly the same situation - a few radicals attempting to prevent something which holds the greatest good for the greatest part of the community. Mostly for their own personal gains. What universe can their brains be in? Given the facts of a shifting, migrating and growing population, how could anyone think they are going to stop the floodwaters at the borders of San Pedro?

Unlike the Luddites however, the R-1 gang won't even be memorialized anywhere except their own ego-inflated memories.


¤¤ Lincoln Place

• Lincoln Place finished construction in 1951. Over the years it fell into disrepair. While having some nice features like real hardwood floors, it was basically a cheaply-built under-maintained disaster waiting to happen with ancient electrical, plumbing, etc.

• Bob Bisno purchased Lincoln Place in 1986. His plan was to demolish the apartments and build condos and townhomes.

• Shortly thereafter the Lincoln Place Tenant's Association was formed. THEY initiated trying every dirty trick in the book to de-rail Bisno. He was merely responding so he could go forward with his plans for his own property. Last time I checked, the United States still has as one of its basic rights the ability for people to build on their own property as long as the building is approved by local authorities. By-the-way, the speaker at the CAC who stated that seniors had been evicted onto the street should check their facts since they were given exemptions and still live there today.

• 1995 - The Los Angeles City Planning Commission approved Bisno's plans.

• Nevertheless, the Lincoln Place Tenant's Association continued and expanded their obstructionist tactics. Basically they wanted it to remain a low-cost, cheap barrio.

• In 2003, Bisno decided to take his profits and stop having to be subjected to the vindictive tactics of the Lincoln Place Tenant's Association. According to the recorded sales prices of what he bought it for and what he sold it for, he did very, very well.

• In July, 2005 following a challenge to a 1993 environmental impact report, the L.A. County Superior Court ruled that there was nothing distinctive or special to warrant official designation as a historic site, stating that Lincoln Place was "not new or unique in concept" nor "designed by a notable architect." Therefore, the owner (AIMCO) was free to proceed with the plans approved in 1995.


¤¤ Conclusions

• Bisno has not had any ownership interest in the property for over 4 years and is not responsible for any actions of AIMCO, the present owner. Accusing him of misdeeds regarding Lincoln Place is just plain slander and/or libel. Lincoln Place has no relevance to what is happening at Ponte Vista. Trying to connect the two is a desperate tactic.

• The lessons which SHOULD be taken from Lincoln Place regarding Bisno are that:

a) He has "staying power". He held his ownership interest in Lincoln Place from 1986 until 2003.
b) He knows when to take his profits and get out.

Both of these points are things to keep in the forefront of our process.


¤¤ Santa Ana

• Members of the CAC visited City Place in Santa Ana, Ca upon their own request. This one of the most intelligent things they have done. It gave them a chance to see the type of quality construction Bisno does. This is one reason he can't charge $100k for one of his condos. It's not to line his pockets, but rather because the construction costs are so much higher.

• This is the same formula which worked so well for him in Santa Monica in the Water Garden projects. People want quality places to live.

• This is one of the great chances Doug Epperhart mentioned about a project being "unique to San Pedro". It is our chance to re-define and change the face of our community for the better. Now, before plans are fixed - we have the chance to give suggestions which will make this project our own special flavor of San Pedro.

• Bisno was not the first owner of the approximately 10-acre site. There were 3 other owners before him who tried to develop the area. But the City was not ready yet, and there was not yet enough pressure on housing demand.

• But here is the kicker. Pay attention people there will be a quiz afterwards! The City of Santa Ana came to Bisno and insisted that he build the 20-storey condo tower of 350 units. It had not been in Bisno's original plan. But the City of Santa Ana thought there would be the demand.

• The total project size will be approximately 525 units. And that is on 10 acres of land, leaving plenty of space for retail.


¤¤ Relevance to Ponte Vista

• Bisno has the staying power to hold onto the old Naval property until the time is right for him to build his project, be that 3 years, or be it 10. Maybe the R1 thugs can frighten Janice Hahn into backing them, but eventually there will be a Councilperson who won't be intimidated by a loud minority.

• Perhaps Bisno realizes that he is going to be fighting a fight which is not worth it to him. Fine. He gets out. He sells to a large company like AIMCO who just doesn't care about anything. They subdivide the property and slap up a bunch of condo units which most likely exceed the original proposal without any of the amenities.

• Bisno waits it out. But by the time he gets his approvals, housing demand in the area has grown so much that City officials come to him and ask him to build a tower (or two). Remember we are in the 6th fastest-growing metropolitan area in the nation.

Then do the math. If he can manage to get 525 units on 10 acres (with retail) in Santa Ana, what could he squeeze into Ponte Vista? 62 acres divided by 10 equals 6. Take 6 and multiply times 525. Wow! 4,500 units.

And he'd get the approvals and permits with merely rubber-stamps from everyone up the line. Why? Because housing demand will have grown so great that the units are desperately needed. The Port is making certain that there is going to be the growth. Related companies and their subsidiaries will add to that. The brutal truth is, because of the Port, we are in for brutal growth.

• Folks, we can no longer hold onto the San Pedro we had before. Our best bet is to make certain we get our input into what is proposed now. Waiting is not an option. We will wind up just getting more density. Let's find a number now which will most likely be more than we want (but also less than Bisno wants), but we can agree on. After it becomes a Specific Plan we can rest easy that not one single more unit will be built on that property.

The radicals on both sides are not doing our town any favors. We have a chance for input now. Let's not blow it.

Tom Field