JSM Capital Files Suit Against City of Los Angeles Community Redevelopment Agency...

JSM Capital Files Suit Against City of Los Angeles Community Redevelopment Agency for Unlawful Abuse of Power

JSM suit alleges the CRA usurps power of other agencies
LOS ANGELES--(Business Wire)--JSM Capital, a private real estate company headquartered in North
Hollywood, filed suit charging the Los Angeles Community Redevelopment
Agency (CRA) with overstepping its legal power and authority in recent
actions governing the North Hollywood Redevelopment area. JSM, one of
the largest property owners and developers in North Hollywood, charges
the CRA with adopting so-called "design guidelines" for the North
Hollywood redevelopment area, which effectively re-write state and
local law. In addition, JSM claims the CRA did not issue proper
advance notification to property owners in the area of the pending
changes or provide property owners with an opportunity to publicly
comment. These changes contradict the Los Angeles City Planning
Department's well-publicized goal of placing new housing close to
transit centers such as North Hollywood, where the Red Line subway and
Orange Line bus corridor converge.

In addition to lack of proper notice, the lawsuit also alleges the
CRA's "design guidelines" are void because they conflict with
applicable City zoning ordinances and State density bonus law, were
adopted without the City Council's required approval, and are
effectively an amendment to the CRA's North Hollywood Redevelopment
Plan without complying with any of the preconditions required for such
an amendment. The imposition of these guidelines will likely
discourage private investment in areas such as North Hollywood.

The CRA's actions impede the ability of JSM to proceed with its
planned developments that will, among other things, increase the
area's affordable housing. All of JSM's projects are privately funded
and do not require any public subsidies from the CRA or any other
source.

"We are only asking that the CRA do the right thing and treat us
fairly. Our company has owned these properties and been planning these
developments for several years. Now the CRA has essentially issued us
an enormous 'change order,' the magnitude of which undermines the
viability of our projects," said Craig Jones, President and CEO of JSM
Capital. "Our team has worked successfully with the CRA on several
projects over the years and would like to continue to do so. However,
the Agency is overstepping its jurisdiction and we have been unable to
work this out together."

JSM, which has been active in North Hollywood since the late
1990's, is widely credited with jumpstarting the most recent wave of
redevelopment in the area with a variety of residential development
sites either completed or in development. The company is known for its
mixed-use residential projects that combine market rate with
affordable housing built above community serving retail and
businesses. JSM has built hundreds of units of affordable housing in
Los Angeles County.

"The CRA apparently doesn't believe it should comply with local
planning and zoning laws which creates great risk and uncertainty for
developers in redevelopment areas. This will have a substantial
negative effect on housing development, particularly affordable
housing which is desperately needed in the City of Los Angeles," Jones
concluded.

About JSM

Founded in 1996, JSM is a private real estate company
headquartered in North Hollywood, Calif. JSM is known for its
innovative, community-focused approach to urban commercial real estate
development. This has allowed the company to create a portfolio of
premier mixed-use and multifamily projects throughout the region.
Earlier this year, JSM was honored with an Achievement Award for
Visionary Planning for Sustainability by the Southern California
Association of Governments. www.jsmcompanies.com

for JSM Capital
Karen Diehl, (310) 396-2400

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