901 Strada Vecchia Update: Court Approves Receiver’s Demolition Plan and Sale of the 901 Strada Vecchia property; Hadid whines
On December 10, 2020, the Honorable Craig D. Karlan signed the order approving 901 Strada Vecchia’s Receiver's Demolition Plan and Sale of the 901 Strada property. The Demolition Plan does not include restoration of the hillside at this time. Demolition will be funded through the sale of the property free and clear of liens and encumbrances.
Among other things, the signed order details the following:
“The Court found that the 901 structure poses an imminent life safety risk to both Plaintiffs and the community at large"
"The City of Los Angeles concurs that the unpermitted structure at the Property should be "safely and expeditiously removed""
"...the City cannot state which piles were inspected, nor can the City explain how the piles were, in fact, inspected, if they were, or how those piles passed inspection , as the evidence is uncontroverted that the piles were not built as per the approved plans. Though the City has taken the position the structure does not pose an imminent threat of collapse, the City also argues that "[t]he cost of removing this private development is properly borne by private investment interests or a super-priority lien on the property, not public taxpayers." In stating it does not deem the structure to pose an imminent threat of collapse, the City relied primarily on the Developer Defendants' experts, but it failed to consider the expert reports and opinions presented by the Receiver showing the contrary. Accordingly, the Court does not find the City's position that the structure does not pose an imminent threat of collapse to be reasonable or persuasive, as it is not based on all the available evidence, and the City cannot state with any degree of certainty how the piles/caissons were actually constructed and/or that they will not fail."
"... overwhelming evidence supports the Court's finding the structure on the Property poses an imminent threat of collapse and harm to the public..."
"Defendant Hadid states under oath he is unable to fund the demolition, while First Credit Bank appears to be unwilling to fund the demolition. Hadid is in default to First Credit Bank, allegedly owes it more than $24 million, and, given the Court is ordering the demolition to proceed and is not ordering either Defendant Hadid or the City to fund the demolition, First Credit Bank does not object to the sale of the Property to fund demolition."
LOS ANGELES MAGAZINE “Mohamed Hadid’s Not-So-Little House of Horrors”
