The Los Angeles Business Journal Digital Edition
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2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNALL TM DIGITAL EDITION THE COMMUNITY OF BUSINESS www.labusinessjournal.com/digital WELCOME TO THE LOS ANGELES BUSINESS JOURNAL DIGITAL EDITION To read your copy of the Digital Edition INSTRUCTION Please select a reading preference FOR PC/MAC How to read LABJ Digital Edition on iPad in iBooks: 1 TAP CENTER 2 TAP ‘OPEN WITH’ 3 TAP ‘iBOOKS’ Wait for gray bar with Wait for scroll down menu menu buttons to appear on and tap the iBooks icon. top of the PDF. Wait for PDF to load in iBOOKS. 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page labusinessjournal.com LOS ANGELES BUSINESS JOURNAL Volume 33, Number 28 THE COMMUNITY OF BUSINESSTM July 11 - 17, 2011 • $3.00 News & Analysis Subway to the Sea? Don’t Stop at Rodeo Drive TRANSPORTATION: Station at Wolfgang Puck’s Spago restaurant to organize their Chrismas, owner and director of Ace Gallery on Billboard booster strategy. Most of them own or have businesses on Wilshire near Canon Drive. Keith Stephens seen tarnishing Golden Triangle. property near the planned station at Wilshire Boule- Chrismas, whose gallery could be subject to the hopes to plaster vard and Beverly Drive that could be hurt by the sta- wrecking ball if the county transportation agency AEG. PAGE 5 By HOWARD FINE Staff Reporter tion. Among them was an art gallery owner, an office decides to acquire the land for the construction effort, is tower owner and a representative from the Two spearheading the business opposition. He said he is not Fearing that construction of a subway station near Rodeo Drive shopping center. opposed to the subway itself and that another planned Rodeo Drive could turn upscale Beverly Hills into a “The construction will drive away business and station at La Brea Avenue would boost business at downmarket destination, a group of the city’s business and we’re concerned that once the subway opens, we will another gallery he has in the Miracle Mile district. property owners has launched an opposition movement. lose our high-end clientele permanently as businesses Last month, about 20 of them met for the first time start catering to the subway passengers,” said Douglas Please see TRANSPORTATION page 33 People BIG SPLIT Developer, partners bedeviled by downturn By ALFRED LEE Staff Reporter as Casden struggled during the downturn. Casden and his partners bought a host of prop- ITH a net worth in the billions and some erties to develop in the L.A. region as the real estate How stunt 70,000 apartments to his credit, Alan market boomed. But amid depressed property val- publicist Jerry WCasden has made a name for himself as ues and difficulty in building the far-flung projects, Digney got the one of the region’s most successful – and pugna- the venture has repeatedly defaulted on loans, cious – developers. according to court records. pope to be an His aggressive style has been key to his Last November, a Casden Properties executive honorary Harlem remarkable history of finishing even the most went so far as to tell the partners there wasn’t enough Globetrotter. difficult projects. He even has kept relics of his cash to finish six projects and proposed a process to PAGE 13 past battles in his office, including a framed dissolve the company, according to court records. “Jack Weiss Stop Casden” sign that is a Documents indicate that Casden Properties, reminder of the then-city councilman’s futile which was formed by Casden; Apartment Invest- Real opposition to Casden’s marquee mixed-used ment Management Co. (Aimco) of Denver; and Palazzo project in Westwood. Cerberus LP, a New York private equity firm, Estate But now Casden is embroiled in a dispute that was long considered a temporary venture and was has pulled back the veil on the performance of his originally set to expire no later than next January. main development company over the past But the entire affair has turned adversarial. decade, Casden Properties LLC. And it Aimco has written off $37 million of its $50 shows that even as tenacious and deep-pocketed a developer Please see REAL ESTATE page 34 Developer Alan Casden State to Lock In Building Workers? Local Contractor’s Why L.A. home prices can’t get off the floor. GOVERNMENT: Landlords Growth Blueprint Days that incoming building PAGE 24 see 90-day law as union boon. security companies must retain old guards under proposed Includes Pickups By HOWARD FINE Staff Reporter 90 law. After 90 days, federal law requires the new company to begin contract talks By JAMES RUFUS KOREN Staff Writer MAIL TO: Local building owners and managers are fighting a with old guards, if they were unionized. proposed state law that would make it more difficult to When Tutor Perini Corp. announced this month fire security guards and other building-related workers. it had acquired one of New York’s largest electrical The bill, backed by service worker unions, would by law would have to enter collective bargaining if and mechanical contractors for $208 million, the news require building service contractors to keep existing they are union workers. That means the new security barely registered. workers for 90 days after a switch of contractors. company would have far more difficulty dismissing After all, GreenStar Services Corp. only does a frac- Opponents of the bill – modeled after similar the old problem guards. tion of the business of the Sylmar construction firm, laws for grocery and hotel workers in Los Angeles – “If this bill passes, the government will decide which brought in $3.2 billion in revenue last year. say it is an unwarranted intrusion into how they for us who we have to hire to take care of our build- But the acquisition was actually the latest in a half- manage workers at their sites. ings and how long we must keep them,” said dozen the company has quietly racked up in less than 12 If the bill becomes law, a building owner who Michele Dennis, president of the Building Owners months – which taken together have dramatically expand- ends a contract with a problem security company, and Managers Association of Greater Los Angeles. ed the reach and capabilities of the large general contractor. for example, would find the incoming security com- “Our hands will be tied if tenants complain about the “That’s a lot for any company,” said Kalpesh Patel, pany would have to hire the old guards and keep them for three months. At that point, the contractor Please see GOVERNMENT page 32 Please see CONSTRUCTION page 33 Real World Insight for Middle Market Companies www.gscpa.com 310.828.9798 2-Page Spread Single Page View Thumbnails | LABJ User Guide | Front Page | Table of Contents Previous Page Zoom In Zoom Out Next Page 2 LOS ANGELES BUSINESS JOURNAL JULY 11, 2011 LOS ANGELES BUSINESS JOURNAL ® JULY 11 - 17, 2011 VOLUME 33, NUMBER 28 FREEanywhere DELIVERY in Downtown LA! ” Don’t leave your Tinker and Evers to Chance.” RINGO H.W. CHIU/LABJ Page 8: Chief Executive Martin Smekal at TabletKiosk’s Torrance headquarters. Columns & features – Media Watch 10, ON THE COVER (213)TICKETS News of the Week 12 (842-5387) GOVERNMENT – Building managers hope to lock out a state bill that would force new PEOPLE contractors to retain old building service workers for 90 days. INTERVIEW – Making the pope an honorary REAL ESTATE – Even deep-pocketed member of the Harlem Globetrotters was a developer Alan Casden had to abandon some slam-dunk P.R. move for Jerry Digney. .13 projects in the downturn. TRANSPORTATION – Some Beverly Hills THE LIST merchants aim to derail plans for a subway AL BROOKS TICKETS stop at the Golden Triangle. RANKING – The 20 largest corporate ENGINEERING – Tutor Perini has quietly philanthropists in Los Angeles County in THEATRE • CONCERTS • SPORTS built up its industry presence with a string of 2010, ranked by cash donations to county 900 Wilshire Boulevard, Los Angeles, California 90017 acquisitions. charities. .17 www.albrooks.com UP FRONT INVESTMENTS & FINANCE EMPLOYMENT – Local non-profit expects Columns & features – Econowatch 19, to step up its Veterans First jobs program as LABJ Stock Index 20 more soldiers return from Afghanistan. .3 EDUCATION – Consultant helps parents and REAL ESTATE students make the grade with financial aid. .3 SPIRITS – Some local bars offer wine lovers HOUSING – June home sales fizzle without a taste of fine vintages with dispensing sizzle of last year’s incentives. .24 machines that keep prices and pours on the CHART – A list of June home and condo sales small side. .3 by ZIP code. .24 Columns & features – Page 3, Columns & features – Real Estate 4 Regional Report Column 23 NEWS & ANALYSIS L.A. BIZ SEEN ADVERTISING – Billboard business alleges CELEBRATIONS – Photos from L.A. AEG is posting illegal outdoor ads at L.A. business community events. .36 Live. .5 INVESTMENT – Analyst thinks retail REIT Macerich’s stock has a lot more in store for COMMENTARY investors. .5 COMMENT – Charles Crumpley thinks MANUFACTURING – New parent Varco Golden Triangle merchants may be on the digs Ameron’s fiberglass pipes for deep oil drilling. .6 right track in trying to keep a subway stop ENTERTAINMENT – MasterImage hopes away from their high-end shops. .38 new overseas theater deals take some focus RETAIL – Cities need to get creative to avoid from 3-D tech rival RealD. .7 being mauled by empty shopping centers, TECH – TabletKiosk CEO Martin Smekal according to Ellen Berkowitz.