Monday, March 19, 2007

Atlantic City Aiming Higher as Casinos Slip

Sylwia Kapuscinski for The New York Times
The Borgata, Atlantic City’s newest and most successful casino, is in many ways the model of what casino operators see as a newly upscale entertainment destination.
By GARY RIVLIN; Published: March 19, 2007

ATLANTIC CITY, March 14 — Making money used to be so easy in this doleful seaside resort, at least if you were in the casino business: Efficiently shuttle a steady parade of day-tripping grandparents clutching rolls of quarters through midmarket gambling halls, and success was all but assured.

Atlantic City's Smaller Take
Sylwia Kapuscinski for The New York Times; Much of the Borgata’s revenue comes from lures other than gambling.

But now casino operators and politicians here are worried about a fall in revenue in the first two months of the year and are braced for what analysts predict could be Atlantic City’s first annual drop since gambling was legalized in the state in 1977.

 

One culprit can be found 77 miles away at the Philadelphia Park Casino, a low-frills slot parlor that opened in December amid the suburban chain restaurants of Bensalem, Pa. There, on a sunny Sunday afternoon, sat Ron Thomas, 72, who would agree to talk only if it did not interfere with his simultaneous play of a pair of $5 Double Diamond slot machines.

“The wife and I, we went to Atlantic City around once a month for years,” said Mr. Thomas, a retiree who lives in Churchville, Pa. “But this place, we’re 10 minutes away.”

Why would he ever return to Atlantic City, Mr. Thomas asked, when it would require a 90-minute car ride “to do exactly what we can do here?”

No wonder, then, that Atlantic City is once again plunged deep in what seems a perennial discussion of how to reinvent itself.

Faced with competition from three new casinos in eastern Pennsylvania and slot machines recently added to Yonkers Raceway in the New York suburbs, casino operators here are wagering large sums that they can transform this low-rent gambling factory on the Jersey Shore into a world-class entertainment destination. They envision a future in which Atlantic City moves upmarket to become a kind of Las Vegas East, where fine food, big-name performers and other amenities — and not just the thrill of pulling a slot machine handle or throwing dice — lure a younger, more free-spending tourist from among the roughly 50 million people who live a tank of gas away.

“This is a town that had been on cruise control for 25 years,” said Larry Mullin, president and chief operating officer of the Borgata, the city’s newest, largest and most successful casino, which spent $200 million last year adding restaurants tied to the celebrity chefs Wolfgang Puck and Bobby Flay and a nightclub as glittery as it is pricey. “The biggest challenge now facing Atlantic City is itself.”

Money is one way Atlantic City is fighting back, sex another.

The city is in the midst of its biggest building boom since the 1980s. Casino operators have invested more than $4 billion in Atlantic City over the past five years, and plans are on the drawing board for at least two more megacasinos, each costing $1 billion-plus.

The city recently dropped its building height restriction as a further draw to casino companies seeking to bring a touch of Vegas bravado to a burgh of 40,000 perhaps as well known for its political corruption and violent crime as for its Boardwalk and ocean views.

These days, cocktail waitresses working the flashier casinos show more skin and are younger and more buxom than they used to be, and a few years ago the city adopted a new slogan: “Always Turned On.” The Borgata, the first billion-dollar casino in town and one of four to report a jump in revenue so far this year, sells a “Babes of Borgata” pinup calendar featuring female employees covered by little more than feathers and strategically placed hands.

“This is an adult entertainment town,” said Mayor Robert W. Levy. “That’s what our casinos have to capitalize on to keep the industry healthy.”

But the mayor and others began seriously worrying when January turned out to be a poor month at the casinos, and February was worse still. Slot revenue was down 8 percent — and overall gambling revenue 4 percent — for the first two months of 2007 compared with those months last year. Michael Pollock, publisher of The Gaming Industry Observer, a trade journal based here, predicted that 2007 would “almost undoubtedly be the first time Atlantic City sees a year-to-year decline in revenues at its casinos.”

A dip in receipts hurts not just the casino industry, but also the public agencies that rely on its tax dollars. Last year Atlantic City’s 11 casinos contributed $417 million — 8 percent of the $5.2 billion gamblers collectively lost — to a state pool used to finance programs to help the state’s senior citizens and disabled residents. The casinos paid an additional $65 million, or 1.25 percent of revenues, into a redevelopment fund intended to combat blight throughout the state, though a portion of that money has been reinvested in casino expansions and renovations.

Atlantic City long ago lost its East Coast casino monopoly as Indian tribes opened gambling outlets in eastern Connecticut and nearby states like Delaware and West Virginia legalized slot machines. Yet gambling revenue in Atlantic City has risen reliably year after year, as it has in Las Vegas and in virtually all the 30-plus states where some form of casino gambling is legal.

But the competition seems to be catching up to Atlantic City, which is steeling itself for what many see as the greatest threat of all: the increasing likelihood of a Las Vegas-style resort in the Catskills, just 90 miles north of Manhattan. More and more, regulars in Atlantic City, 130 miles south of Manhattan, are being offered free meals and generous cash rewards to keep them coming back.

This year’s dip in casino revenue comes at a time when many here thought Atlantic City was on an upswing. The Boardwalk is looking spiffier than it has in years, and the city — using casino dollars set aside for capital improvements — has induced a long list of name-brand retailers, from Banana Republic to Polo Ralph Lauren, to a downtown business district that has been struggling for decades.

Yet so palpable are fears over the long-term viability of the casino industry that roughly one-fifth of the money originally intended for economic development across the city and state has in recent years been diverted back to casino-oriented projects.

“It’s critical that we give people a reason other than slot machines to come visit our casinos and spend time with us,” said Jay Snowden, 30, general manager at the Showboat casino. “For too long people in the industry thought of Atlantic City as nothing but a bus market for blue-haired nickel-slot players.”

Opened in 2003, the Borgata is in many ways the model for the newest new Atlantic City. Unlike its neighbor casinos, the Borgata does not bus in daily visitors. Even so, gamblers collectively lost $122 million there in the first two months of 2007, nearly twice the average, $65 million, of the city’s other 10 casinos.

“The Borgata has certainly opened everyone’s eyes to the potential for a new market for Atlantic City,” said Ken Condon, general manager of Bally’s, where gamblers lost just under $100 million in January and February, second to the Borgata.

Yet more inspiring than the Borgata’s casino revenue is the money other parts of the resort generate. It was in the 1990s that Las Vegas operators started to veer from the long-held notion that every moment a visitor spent somewhere other than the casino floor translated into money lost. As a result, the big players in Las Vegas have long gotten more revenue from shops, high-end restaurants, shows and spas than from casino floors; last year, 59 percent of the income for casinos on the Las Vegas strip was nongambling.

Mr. Mullin, the Borgata chief executive, said his property collected 35 percent of its revenue from sources other than gambling. That is far behind Vegas, but way ahead of the comparable figure across Atlantic City, which Mr. Pollock of The Gaming Industry Observer put at 10 percent.

Jeffrey S. Vasser, executive director of the Atlantic City Convention and Visitors Authority, said that is largely because the average visitor spends 24 hours here rather than the three or four days he might spend in Las Vegas.

“We still have a long way to go before we get where I know we can be,” Mr. Vasser said. “But where in the old Atlantic City the casino operators would never let people out of the building, at least now they understand that it might be a good idea to let them play a round of golf, because that way they might even be inclined to stay here for a few days.”

Posted by M at 19:46:16 | Permalink | No Comments »

A wave of building in a prime surfing spot

By Irene Lechowitzky, Special to The Times; March 19, 2006

SunstruckTower of tranquillity

Yes, San Clemente existed before President Richard Nixon made it the home of his Western White House. In reality, this lovely beach town has been around since the 1920s, the creation of an entrepreneur who envisioned a Spanish village by the sea. Today, new developments have sprouted around the city’s retro core, and the surfing beaches are world-famous.


Beginnings

In the early 1900s, 26-year-old Ole Hanson was traveling on a train from Los Angeles to San Diego when he saw a stretch of oceanfront land that made a strong impression on him. In 1925, Hanson, an entrepreneur (and the former mayor of Seattle) returned to the site and bought a large parcel of land from owner Hamilton Cotton to develop a new city, to be known as San Clemente, the “Spanish Village by the Sea.”

Hanson required that all buildings feature white Spanish-style structures with red-tile roofs. Many thought he was crazy to build in the middle of nowhere, but lots were successfully promoted, and the Los Angeles Examiner reported first-day sales of $125,000, unheard of at the time.

Hanson’s own magnificent ocean-view family home, Casa Romantica, was designed by famed architect Carl Lindbom in 1927 and is used as a cultural center today.

In 1969, President Richard Nixon purchased a historic Spanish-style mansion designed by Lindbom. Visitors to the Western White House included such luminaries as Soviet Premier Leonid Brezhnev and Henry Kissinger.

Drawing card

San Clemente’s beauty is right out in the open. Its 15 square miles encompass a landscape of terraced hills, palm-tree-studded beaches and a drop-dead-gorgeous, shimmering blue ocean. At the southernmost edge of Orange County, its five miles of beautiful beaches offer clear water and easy access.

The center of beach activities is Pier Bowl, a wide, sandy beach edged with palm trees that includes a lush grassy strip with benches.

There are shops, cafes and lodging nearby. Fisherman’s Restaurant, on the 1,200-foot-long pier, is a popular place to drink, eat and watch the sun set. With strong swells year-round, catching a wave is serious business here; it’s a hub of surfing-related industries. Local surfers often win championships.

The city has lots of places to play. There are numerous parks, and the golf courses are all above par. Residents get a discount at the municipal course.

With its many red-roofed buildings, the city’s Spanish influence is still visible today. Avenida Del Mar, the heart of the historic village, has a nice mix of small stores and restaurants. Locals take pleasure in the slow pace and the friendly, laid-back vibe.

Insider’s view

San Clemente is getting a new wave of housing developments. Talega, a new master-planned development a few miles inland, has single-family homes, condos and townhomes, with amenities that include a golf course and a nature preserve. The 4,000-unit development is scheduled to be completed in 2008. Prices range from the mid-$800,000s to more than $2 million.

Also on tap is the new Marblehead Coastal project, planned for the beach area just north of downtown, which will have 351 residences, a 52-acre commercial center and more than 100 acres of open space and public parks.

“The north beach area is being transformed” by the project and is becoming the area to watch, said Debbie Ferrari, with Prudential California Realty.

Good news, bad news

Trying to navigate the narrow streets in the downtown area can be confusing. Because of the sloping topography, there are few straight roads, and trying to find a street is akin to making your way through a maze.

Housing stock

San Clemente growth is strong with new home construction. The city planning department says 390 single-family dwellings were built in 2005; 346 were in the Talega complex.

In the established area west of the 5 freeway, the varied housing includes condominiums and older homes as well as beachfront estates and gated communities. Many of the older beach cottages are being remodeled and expanded.

As of early March, there were 254 single-family homes for sale in San Clemente out of 14,664. At the low end is a 995-square-foot, three-bedroom, one-bathroom home listed at $699,000. There is a seven-bedroom, eight-bathroom, 10,728-square-foot ocean-view estate on just under an acre for $7 million.

Report card

San Clemente’s scores in the state’s annual Academic Performance Index Growth Report for 2005 include these elementary schools: Benedict Truman, 858; Concordia, 840; Las Palmas, 705; Clarence Lobo, 762; Marblehead, 812; and Vista del Mar, 851. The middle-school scores were: Shorecliffs, 784; Vista del Mar, 790; and Bernice Ayer, 813. San Clemente High School scored 772.

Historical values

Residential resales:

Year…Median price

1990…$300,000

1995…$230,000

2000…$401,000

2004…$785,000

2005…$855,000


Sources: DataQuick Information Systems; city of San Clemente; sanclemente.com; the Heritage of San Clemente Center; San Clemente Historical Society; realtor.com; California Department of Education, cde.ca.gov.
Posted by M at 14:26:20 | Permalink | No Comments »

Silver Streak buses start Montclair-L.A. run

Foothill Transit wants Caltrans to restrict access to carpool lanes during peak hours so its new freeway flyers can make good time.
By Jean Guccione, Times Staff Writer
March 19, 2007

As traffic congestion through the Pomona and San Gabriel valleys worsens, the promise of a quicker commute — and amenities such as free wireless Internet service — should lure some solo motorists onto the new Silver Streak rapid buses.

But the success of the new service from Montclair to downtown Los Angeles, which started Sunday, rests on whether the 60-foot buses will be able to bypass traffic by racing down the San Bernardino Freeway carpool lanes.


Like the rest of the freeway, the high-occupancy vehicle lanes are getting crowded, whether from more carpools or solo drivers in hybrid vehicles using the dedicated lanes.

“There are just too many cars,” said Doran Barnes, executive director of Foothill Transit, the public agency that runs the Silver Streak bus service.

So Barnes and other local transit officials are asking the California Department of Transportation to restrict access to the carpool lanes for at least two more hours each workday.

Vehicles — except hybrids — with fewer than three people are already banned during peak traffic hours, weekdays from 5 to 9 a.m. and 4 to 7 p.m.

Even with those restrictions, it now takes a bus two hours at rush hour to travel the same Montclair-to-downtown route that took 94 minutes a decade ago. Travel times have increased seven to 10 minutes in the last 18 months, transit officials said.

The Silver Streak is expected to reduce travel times to as little as about 90 minutes by stopping only at major transit hubs.

Buses have barreled past cars on the 10 Freeway east of downtown Los Angeles in their own dedicated lanes, known as the El Monte Busway, for most of three decades. But although the lanes were built for buses only, political pressures soon converted them into carpool lanes as well. That change came with a hitch, however: Vehicles had to carry at least three people, rather than the two that is standard for other such lanes.

After a failed experiment to open the lanes to vehicles with two or more people, a compromise was struck a few years ago, allowing such vehicles back in but only during off-peak hours. The busway is still one of the state’s few sets of carpool lanes requiring three or more people per vehicle, if only during peak hours.

But transit officials say that compromise is no longer working. Like the buildup of residential developments along the bus route, rush-hour traffic on the San Bernardino Freeway is sprawling.

“Even with three in the carpool lane, we are seeing challenges,” said Barnes, whose agency moves 15,000 commuters a day along the busway.

To keep its buses running on time, Foothill Transit wants to extend the morning restrictions to 10 a.m. and begin the afternoon peak period an hour earlier at 3 p.m.

“We need to get aggressive about trying to protect the integrity of the busway,” said John Fasana, a Duarte city councilman who sits on the boards of Foothill Transit and the Los Angeles County Metropolitan Transportation Authority.

Caltrans officials say they are studying the idea. They are also working to secure funds to complete the stretch of carpool lanes between the 605 Freeway and the San Bernardino County line.

Fasana knows that plush new buses and free Internet service won’t persuade motorists to give up their car keys unless they can get to work a little faster and on time. And that’s where the Silver Streak comes in: It should take as little as 91 minutes to travel the 40 miles from the Montclair TransCenter to its last stop at Grand Avenue and Olympic Boulevard in downtown L.A.

Buses will operate around the clock and are scheduled to run every 12 minutes in peak time. The other stops are in Pomona, West Covina and El Monte, and at Cal State L.A., County-USC Medical Center and Union Station.

Besides providing Internet connections, the new buses are equipped with GPS and security cameras. An automated system will announce station stops and display bus arrival times.

The fare is $2, with discounts for eligible seniors, people with disabilities and Medicare cardholders. But until April 1, passengers can ride free.

For more information, call (800) RIDE-INFO or go to http://www.foothilltransit.org .

Posted by M at 14:21:35 | Permalink | No Comments »

Mayor, council have final say on air rights funds

Law allowing L.A. to sell theoretical space over the Convention Center is expecting to raise $200million for projects.
By Steve Hymon, Times Staff Writer
March 19, 2007

The law recently approved by Los Angeles officials to sell so-called air rights to downtown developers gives the mayor and City Council final say over how the projected $200 million would be spent.

The deal allows the city to sell 9 million square feet of theoretical space over the sprawling Los Angeles Convention Center. Although city zoning laws allowed builders to go much higher, the center is just three stories high.

Now the city can sell that unused space to developers whose projects may be restrained by density limits.

How much of that space sells, if any, remains to be seen. Buildings downtown still must conform with the city’s zoning laws and, generally speaking, it is difficult for builders to go very tall without assembling a large swath of land.


Deep in the ordinance that authorizes the deal is the key phrase: Ultimately the use of the money will be determined by the City Council and the mayor.

That means it could be spent to buy land for a new park or to build a downtown streetcar system. Or it could be spent on improvements or mitigations that a developer would ordinarily have to pay for out of their own pockets.

“I agree that we have to be very alert about the fund, because using it for something else would undermine the integrity of the program,” said Councilwoman Jan Perry, whose district will probably benefit the most from the deal because the “air rights” revenue would have to be spent within a radius of two miles.

“I’m always worried about misuse of city funds,” Perry said, “but I do think what helps here is that the funds must be used near the Convention Center.”

Perry will probably have a big say in how most of the money is spent. The new law calls for a committee of community members and bureaucrats to first vet spending proposals, then give the council and mayor ultimate approval.

The committee must include the council member who represents the source and the destination of the air rights. That guarantees Perry a say because the Convention Center is in her district. The two-mile limit makes it likely that the air rights will be bought for projects in her district.

Perry said she intends to set up a working group to study the best way to determine how to spend the money, assuming developers begin buying air rights. She expects the air rights to sell over many years.

Councilman Jose Huizar, whose district includes parts of eastern downtown, sees a benefit with the money but also is cautious. “In my year on the council, I’ve seen a lot of money dedicated for certain things go somewhere else,” Huizar said.

The ordinance also allows for 15% of the fund to be used for administrative purposes. Otherwise, the law provides a list of items that the money should be spent on, including affordable housing, open space, historic preservation, public facilities, job training programs, affordable child care, street-scape improvements, public arts programs, programs for the homeless or public transportation.

One reason the deal is so attractive to city officials is that the city has relatively little money for capital improvement projects.

That is the reason, for example, the city can afford to fix only a tiny fraction of its sidewalks and roads each year.

When a big project becomes necessary, the city usually has to borrow heavily to pay for it — an example is the new $40-million elephant exhibit at the zoo — or somehow persuade the state and federal governments to fund it. Neither route is easy.

Many downtown residents say they are excited that the city may have new money to spend, and already a debate has begun over how to use the funds.

“I think there will be a lot of eyes on this money and I feel very comfortable that the people here — particularly Jan Perry — understands what downtown needs,” said Eric Richardson, a member of the Downtown Los Angeles Neighborhood Council who also runs the website http://www.blogdowntown.com .

Richardson would like to see some of the money used for affordable housing and possibly to buy an open lot for a future park, particularly in the South Park area, which is being rapidly developed.

Russell Brown, the downtown council’s president, said his concern is that the city may use the money for maintenance instead of true public upgrades.

“I think this could be an amazing opportunity,” Brown said. “But it needs to be thought out. If it gives downtown options they don’t presently have, that could be great — if the money is well managed.”

Brown and Carol Schatz, president of the Central City Assn., said money would be well spent on public transportation that would tie together emerging downtown neighborhoods.

Schatz, in particular, said she favors using some money on a downtown streetcar system that has been under study by the Community Redevelopment Agency.

Posted by M at 14:21:00 | Permalink | No Comments »

Developers, industry battle for L.A.’s heart

By Cara Mia DiMassa, Times Staff Writer
10:53 PM PDT, March 18, 2007

Industrial chic


‘We should be careful not to destroy the things about downtown that actually work.’
Joel Kotkin, Urban planner

The old warehouse at the corner of Industrial and Mateo streets in downtown Los Angeles had seen better days when Yuval Bar-Zemer and his partners at the Linear City development firm bought it in 2002.

The 1924 structure, in a rundown section of downtown, was a World War II-era bomb shelter and later a toy factory. It was being used to store the plush shells of stuffed animals.

The developers transformed it into 119 live-work units, with a rooftop pool and other communal amenities. They dubbed the new space Toy Factory Lofts. On the building’s ground floor are a pub-style restaurant, a high-end grocery store and a health club.

And this weekend, the developers finished work across the street converting the former West Coast headquarters of the Nabisco company into 104 live-work condo units.


But what might seem like a tale of urban renaissance is actually at the center of a fierce battle brewing in downtown L.A. that pits the shiny new downtown against the gritty version that has long existed in the heart of the city.

Developers like Bar-Zemer are pushing Los Angeles to radically rezone the city’s industrial core to allow residential development. They argue that the change would create a new type of neighborhood, one that would mix light industry with condo living and live-work lofts — spaces where artists, architects and others can operate businesses and sleep at night — and would ultimately create more jobs and tax revenue for the city.

The city Planning Department and some community activists, however, are resisting the heavy lobbying. They say the industrial zones provide solid jobs for the working class and boost L.A.’s economy.

“In the rush to build some downtown fantasy, we should be careful not to destroy the things about downtown that actually work,” said Joel Kotkin, an urban planner who has written extensively about L.A.’s economy. “The industrial stuff actually works: It employs a lot of people, there’s a low vacancy rate, and being at the center of a transportation hub really matters.”

At stake is the future of the city’s industrial land — and not just in downtown.

About 8% of the city — or 19,000 acres — is zoned for industrial use, mostly properties used for manufacturing, storage, distribution and other commercial operations. Although the debate now centers on the vast tracts around downtown, where the largest concentration of the industrial land is located, the proposed changes could have a ripple effect elsewhere, including Hollywood, the Westside and the San Fernando Valley.

The debate goes beyond issues of planning, zoning or architecture, say most people familiar with the discussions, and centers on the very nature of what a city is supposed to be, and who it should be for.

“We need as a city to move away from our 1950s-era suburban-model approach to zoning and instead devise land-use regulations that combine uses, to create jobs and housing on one site at one time,” said Kate Bartolo, senior vice president of development for the Kor Group, which is developing a number of projects downtown, including the conversion of the former Barker Bros. furniture warehouses in the industrial district into condos and retail space.

The debate exemplifies how the economics of revitalization are rapidly changing Los Angeles.

As the boom in downtown residential real estate moves into the industrial district, aging factory spaces are suddenly worth more if converted into lofts. That’s because large industrial living spaces are selling for a premium, costing $500,000 or more for each unit.

Because of this, many owners of industrial businesses are conflicted, because they see the economic benefits of residential conversion.

A city report placed the price of land for residential uses downtown at roughly five times that of industrial land. If the industrial land downtown is rezoned, city officials say, that value could rise even more sharply.

At the same time, however, the city found that the industrial district around downtown supports 64,000 jobs, most of which pay around $19 to $24 an hour (though some developers say those numbers are somewhat inflated).

For more than 100 years, downtown has been the heart of industrial L.A. — ever since the Southern Pacific Railroad opened L.A.’s first rail depot there in the late 1800s.

As the city grew, so did the district, and brick buildings began to dot the nearby landscape, built to handle the vast number of goods coming into the region.

By the 1920s, national firms began locating their West Coast branches in the city center, said Greg Hise, an associate professor of urban history at USC’s School of Policy, Planning and Development.

Today, though, the downtown warehouse district is a tangled mix of industry and neglect.

The district’s streets are, quite literally, crumbling, riddled with cracks, the skeletons of old rail lines and wheel-size potholes. Few of the area’s loading docks, built decades ago, can accommodate modern semi trucks.

Still, with their fences lined with barbed wire and graffiti, most of the district’s low-slung buildings are occupied, home to cold storage facilities, produce companies, toy storage and more.

City officials say that the vacancy rate for downtown’s industrial land hovers around 1%, and that demand for certain-sized parcels can’t be met by the current supply.

A recent analysis commissioned by the city predicted that the market for sites could become even tighter, as industrial tenants seeking bigger spaces come face to face with developers in search of the next “it” neighborhood.

Bar-Zemer and other developers argue that simply relying on the time-honored roles for downtown buildings is not what’s best for creating a teeming, vital downtown.

He and others look at the decaying warehouses and argue that the hip, old buildings with great bones and a lot of floor space would be better off as high-density housing. They have the support of the area’s major business groups and City Council members Jose Huizar and Jan Perry, who represent downtown.

“We don’t want a residential neighborhood — that is exactly what we don’t want,” Bar-Zemer said. “We want an interaction between housing and work spaces. That could happen within a unit, within a building, within the block. It demands a level of flexibility.”

Other developers agree with that line of reasoning. “Saying that industrial is wholly incompatible with live-work lofts is very dated thinking,” said Bartolo, whose firm is also behind the Molino Lofts in the industrial district and the Pegasus, Santa Fe and Eastern Columbia buildings farther west in downtown.

“Much of downtown’s new industrial growth is compatible with live-work uses,” Bartolo said. “This new industrial tenant — from apparel to new media—functions more like an office tenant than the old smokestack industries.”

They say that more live-work spaces will mean residents use their cars less — something city officials are trying to promote. (City planners counter that many industrial workers already live within a few miles of downtown and often use mass transit).

The analysis conducted for the city by Keyser and Marston, a real estate advisory firm, concluded that changing the zoning of downtown’s industrial land from industrial to residential “would confer substantial additional land value.”

For city planners, there is a palpable fear that those “industrial users” would take their businesses and their good-paying jobs and tax dollars to more industry-friendly cities such as Vernon or Duarte. This is likely to become an issue when the L.A. Planning Commission and City Council take up the matter in the coming weeks.

“We are looking at it from the big-picture point of view,” said Jane Blumenfeld, a city planner. “We are trying to make public policy…. The reason you have these rules and regulations in a city is to intervene when you have to intervene, for public purposes.”

Dan Murphy, the general manager for California Drop Forge, said his company, which supplies parts to commercial and defense aerospace companies, has operated out of a downtown warehouse for more than 100 years.

He said it would be difficult for the company to find space for its operations elsewhere. It uses forging hammers, presses, furnaces and a large boiler.

Murphy added that the company, which has 76 people at its site near Chinatown and pays wages up to $31 an hour, is concerned that changes in the zoning laws could have a “negative impact.”

“We see the money spent downtown on all the housing,” Murphy said. “But at the same time, we hope the city understands the need for an industrial base down here.”

cara.dimassa@latimes.com

Posted by M at 13:53:00 | Permalink | No Comments »

Erasing a line drawn in the sand

Manhattan Beach renames a park to honor a black couple forced to give up their resort in the 1920s.
By Deborah Schoch, Times Staff Writer
March 19, 2007

Manhattan Beach renames a park

In two weeks, Manhattan Beach city leaders and residents plan to gather at a small park by the ocean to lift the veil from a commemorative plaque, revealing a piece of little-known local history.

“This two-block neighborhood was home to several minority families and was condemned through eminent domain proceedings commenced in 1924,” the plaque reads. “Those tragic circumstances reflected the views of a different time.”


After debate last summer, the City Council voted to rename the park Bruce’s Beach, acknowledging the African American couple who bought the land overlooking the Pacific in 1912.

There, Charles A. and Willa Bruce created one of the few places in Southern California where black families could swim and relax along its sun-bathed shores. They ran an inn called Bruce’s Lodge, a cafe and a dance hall.

By the mid-1920s, city leaders contended that the land occupied by the Bruces’ resort would better serve the community as a public park. The city used its powers of condemnation to buy the land from the Bruces and other nearby residents, removing most of Manhattan Beach’s African American residents and visitors.

No park was built there for three decades.

Some who know this slice of history believe that the story of Bruce’s Beach merits more than a commemorative plaque and should be explained in a more detailed exhibit that speaks to the issue in the context of segregationist practices of the time. The City Council has not embraced that idea, approving only the name change and plaque.

It’s not known yet how many people will attend the dedication March 31; planning started just last week. But among those committed to show up are Robert L. Brigham and Alison Rose Jefferson — historians generations apart — who researched the story of Bruce’s Beach. They and others took the issue to City Hall, winning the backing of Mitch Ward, the city’s first black elected official, who requested the ceremony.

An invitation will probably be extended to Bernard Bruce, 72, the grandson of Charles and Willa, welcoming him to the town that forced his ancestors out.

*

White and upscale

Manhattan Beach is best known for its wide sandy beaches that draw visitors from throughout the region. Cyclists glide along the Strand, past multimillion-dollar residences and well-kept gardens thick with roses. Tourists flock to the city’s upscale restaurants and bars.

The city of 30,000 remains predominantly white — 89% in the latest census. Just 0.6% of its residents are black, only a small increase since 1970.

Brigham moved to Manhattan Beach from Los Angeles in 1939 at age 12 with his middle-class parents. He recalled riding through the city by bus and wondering why two blocks of seaside land sat barren, pockmarked with weeds and empty Coca-Cola bottles.

“I said to some of the adults, ‘Why is it?’ ” said Brigham, 79. “They would put me off, saying, ‘You don’t want to know,’ or ‘You’re too young’ or ‘I don’t know.’ “

Years later, as a Cal State Fresno graduate student in history, he set out to write his master’s thesis on Bruce’s Beach and returned to his hometown to ask old-timers the same question. Why is that land still vacant?

“There’s a kind of tension,” he said, “between people who are very conscious of the history of Bruce’s Beach and those who would rather forget about the whole thing.”

Brigham, who taught at Mira Costa High School for 38 years, learned that Willa Bruce bought the land in 1912 and that she opened the resort with her husband. Beachgoers flocked there from fast-growing black communities in Los Angeles. A few other black families built homes nearby.

“You would take the Red Car down to the beach and spend a day on the beautiful beach or rent a room if you desired,” Miriam Matthews, Los Angeles’ first black librarian, said in an essay prepared for the California African American Museum. The resort hosted Sunday school gatherings and families, and “if one tired of the sand and surf, the parlor was available for listening to music or dancing.”

White resentment festered.

Beachgoers would find the air let out of their car tires, Brigham wrote in his 1956 thesis. Local members of the Ku Klux Klan tried to set fire to the resort’s main building. Someone burned a cross nearby. White residents roped off the sands to keep blacks away.

Eleven years after the resort opened, city officials started condemnation proceedings, and its buildings were razed in 1927. The Bruces received $14,500.

*

‘Part of my dreams’

Nearly 50 years after Brigham finished his thesis, Jefferson, a master’s candidate in historic preservation at USC, read a Los Angeles Times column about Bruce’s Beach. Her interest piqued, she tracked down Brigham’s thesis and delved deeper, uncovering a cache of old photographs at the Los Angeles Public Library.

“It’s the whole idea of these middle-class people who were African American, figuring out how to take part in the California dream,” Jefferson said. Now an associate historian at Historic Resources Group, a consulting firm, Jefferson is writing her master’s thesis on the region’s black recreation spots in the Jim Crow era.

She found Bernard Bruce at his home in Los Angeles. He was born in 1934, after the resort was demolished. He told Jefferson that his mother was ill for many years after the eviction.

“These people, they worked on the railroad, they saved their money, they put up a resort and they lost everything,” Bruce said in a recent interview. “How would you feel if your family owned the Waldorf and they took it away from you?”

Growing up in South Los Angeles, he could only imagine what the old resort was like. “It was part of my dreams,” he said. When he told school friends that his family once owned a beach, they would laugh at him. But he has long held the proof in his hands: faded photographs showing his grandparents relaxing on the sand.

Last summer, Jefferson went to Manhattan Beach to urge council members to rename the park Bruce’s Beach.

Grappling with the story has not been easy for the city, she said later. “It requires that they need to do some thinking about the history of the community. And it also requires that they do some soul-searching for themselves as well.”

One man presented a petition opposing the name change, signed by 53 park neighbors. Some wanted to keep the name of 32 years, Parque Culiacan, after a sister city in Mexico. Some worried about parking problems if the small park attracted tourists. One councilman suggested that the city make a public apology but not change the name.

Four council members appeared poised to reject the Bruce’s Beach name when Ward — mayor at the time — spoke eloquently in favor of the change, describing the Bruces as early African American entrepreneurs who deserved city recognition. It passed, 3 to 2.

*

Mixed response

A few loose ends remain as the dedication approaches.

Councilman Jim Aldinger, who opposed the name change, said earlier this month that he is uncomfortable with the idea of a ceremony. He called it unnecessary. “I don’t know who we would invite to it,” he said.

The issue of an exhibit has not been resolved, although the current mayor, Nicholas W. Tell Jr., said he would support a display at a nearby county lifeguard building. Lawyer Robert Garcia, executive director of the City Project, a public resources advocacy group, is encouraging the city to create an art project at the site.

Others disagree, including local businessman Bob Beverly Jr., who grew up near the park. “Save the art for looking out at the coast there; that’s God’s art,” he said.

Bernard Bruce said Manhattan Beach officials have not yet contacted him with news of the name change or the dedication. He likes the notion of a ceremony. “The beach is resurfacing. It’s coming back now, because it was never done right in the beginning,” he said. “It’s going to come out the way it should be.”

Two weeks ago, Ward was resoundingly reelected to the council. Several of his opponents significantly outspent him, but he emerged as one of the top two vote-getters among eight candidates vying for two seats.

Ward, 45, the owner of a local computer technology service, moved to Manhattan Beach 16 years ago after a stint on Wall Street.

He likes the close-knit feel of the town and learned of Bruce’s Beach after he moved in.

“Sometimes you think about it, and — that’s just mean,” he said. “I could get angry. But I’ve learned over the years, you lose a little bit of your dignity that way. I just don’t dwell on it.”

He understands why the Bruces wanted to own a beach. When he moved from New York, he bought a home on the beach himself.

“My first day there,” he said, “I lay down in my frontyard and thanked my lucky stars.”

*


deborah.schoch@latimes.com

*

(INFOBOX BELOW)

Ready for its dedication

The Manhattan Beach City Council approved a large plaque to honor the African American family that once operated a resort at what is now a city park. The plaque says:

Bruce’s Beach

In 1912, Mr. George Peck, one of our community’s co-founders, made it possible for the beach area below this site to be developed as Bruce’s Beach, the only beach resort in Los Angeles County for all people. Charles and Willa Bruce were the African American entrepreneurs who settled here, thus the name Bruce’s Beach. This two-block neighborhood was home to several minority families and was condemned through eminent domain proceedings commenced in 1924. Those tragic circumstances reflected the views of a different time.

The land was referred to as City Park and Beach Front Park and later named Bayview Terrace Park through a community contest in 1962.

The park was designated Parque Culiacan on March 16, 1974, at the time of a visit from representatives of our first Sister City.

The Manhattan Beach City Council renamed the park as Bruce’s Beach in July 2006, commemorating our community’s understanding that friendship, goodwill and respect for all begins within our own boundaries and extends to the world community. All are welcome.

A project of Leadership Manhattan Beach Class of 2003.

Posted by M at 13:38:26 | Permalink | No Comments »

Buying With Help From Mom and Dad

 

By CHRISTINE HAUGHNEY; Published: March 18, 2007

LIKE many parents, Madhu and Kishore Agrawal do whatever they can to help their children. For their 25-year-old daughter, Natasha, that help has ranged from sending her through Tufts University to watching her cat, the General, when she traveled to India to visit relatives late last year. Recently, they made the most financially demanding commitment so far: they are putting up most of the money to help her buy a two-bedroom penthouse apartment in Williamsburg, Brooklyn , for $900,000.

Robert Wright for The New York Times
BIG GIFT Dr. Kishore Agrawal and his wife, Madhu, are putting up most of the money to buy their daughter Natasha a $900,000 penthouse.
 Top, Tami Chappell for The New York Times; bottom, Chester Higgins Jr./The New York Times
THE TIES THAT BIND Dianne and Gary Spence of Midville, Ga., top, are helping their son Brian, bottom, buy a $265,000 studio on West 57th Street.
 Chester Higgins Jr./The New York Times
One of the issues that Natasha Agrawal and her parents have yet to work out is whether her two thrift-store couches will be moved to the new apartment they are buying for her in Brooklyn.

Space and privacy will be a big change for Ms. Agrawal, who now lives in a sixth-floor walk-up in Chelsea with three roommates, but it does not come without complications. Or, as some might say, strings.

In exchange for getting financial help from her parents, there are certain things she knows she cannot do: for instance, she cannot let her boyfriend move in. She accepts that. More contentious is the matter of the couches she bought from a thrift store.

Ms. Agrawal says the couches will be moving with her, because they will blend with the deep greens, yellows and oranges that she plans as the color themes for the new apartment. “I’m not ready to give in,” she said while seated in a SoHo cafe during a break from her job, working in the promotions department at an independent music label. “It’s not like me having furniture I like will depreciate the value of the house.”

Conflicts like this are becoming more common in New York City real estate as more parents — not all of them wealthy — help their adult children with their first home purchases. A decade ago, younger New Yorkers were able to buy their own apartments. That’s because studios and one-bedrooms cost $150,000 or so.

Now, first-time buyers are paying nearly four times that for the same apartments, according to data from the Real Estate Board of New York.

Brokers say they see more buyers turning to their parents for help with $100,000 down payments or monthly mortgage payments, or for temporary loans to their bank accounts so that they can pass muster with certain co-op boards.

As a result, more parents are remembering how their own parents helped them, looking at their own financial situations and entering into complicated business partnerships with their adult children. In many cases, they are expecting some control over the furniture, the appliances and even how often they can use the apartments for their own visits to New York.

“There are a lot of stipulations in these deals,” said Amy Herman, a Halstead Property agent who has represented about three dozen parents helping their adult children buy apartments in the past five years. “They gift with a caveat.”

She said that only one of these deals closed smoothly and that many brokers no longer represent parents and adult children. “It’s just very time-consuming,” she said.

More buyers are turning to therapists to help them work through how they feel about depending financially on their parents when they have carved out independent careers and lives. Dr. Richard Shadick, a Manhattan psychologist who works mainly with 20- and 30-something New Yorkers, said that “a good portion” of his cases focus on the problems of seeking financial help from parents to pay for housing.

Parents who lend money to help their adult children can make demands that include becoming engaged to the person they are living with, he said, or signing prenuptial agreements allowing them to keep the real estate in their names. He finds that no matter how generous parents may be, their children can feel embarrassed that they can’t afford to pay for their own housing.

“Even if the parents gift money, there is an emotional connection to the money that’s given,” Dr. Shadick said. “A recipient may feel that they are not able to do it on their own and that they’re less of an adult. Part of the issue is the cultural trend of delaying separation with their children, and the other part is the high cost of real estate in New York.”

When these discussions get tough, first-time buyers in New York City can’t opt for extra-large mortgages as buyers can in the rest of the country. According to the National Association of Realtors, 45 percent of first-time buyers nationwide put no money down, but in New York City most condominiums require down payments of 10 percent, and most co-ops require 20 percent.

In many cases, parents make loans to their children under the assumption that New York City real estate will continue to rise in value. But because there is no guarantee that it will, Asheesh Advani, a former World Bank consultant who founded CircleLending Inc., a Waltham, Mass., company that organizes all types of loans among relatives, says that adult children should treat loans from their parents like loans from banks.

He suggests that they draft a formal document stipulating that they will make monthly payments on their loans, rather than paying their parents back when they sell the apartment. This way the children get an annual tax deduction for the interest paid on the mortgage, and the parents don’t pay all of the taxes that they would if they offered an outright gift.

The children’s contract might stipulate that if they sell they apartment, they must pay back their parents, just as they would pay off a mortgage to a bank. The children can keep the profits, if any, but if the apartment has declined in value, they still pay their parents back.

In neighborhoods like Williamsburg, some parents are buying apartments outright for their children. Apartments there typically cost $700 or so per square foot, compared with more than $1,000 in the financial district in Manhattan, said Christine Blackburn, a Prudential Douglas Elliman associate broker at the building where the Agrawals bought.

She added that parents or children with trust funds are buying about 25 percent of the inventory in Williamsburg. In Ms. Agrawal’s new building, parents bought about 10 percent of the 36 units.

Ms. Blackburn, too, finds that most of these arrangements carry conditions.

“The girls are not allowed to have the boyfriend move in,” she said. “With the sons, they expect them to have roommates.”

Dr. Agrawal is a surgeon at Staten Island University Hospital’s South Site, and he and his wife, who live in the southeast Annandale section of the island, have investments in the stock market and in real estate.

They said that they wanted to help their three daughters equally. They had already bought their daughter Monisha, 29, an apartment on the Upper West Side, but when she married, she needed a larger place. They have told their third daughter, Pia, 23, that they will help her in the future.

For Natasha, they wanted more room to grow. The Agrawals began looking in Williamsburg after a family friend mentioned that he was working as a contractor on a condominium there and talked about the strength of the market.

The couple decided that an investment there would be a good way to give Natasha a place to live and to teach her how to build equity. She is contributing about 20 percent of the down payment toward the purchase, which translates into about $18,000, and $1,000 for the monthly mortgage payment plus utilities.

The Agrawals also tried to balance their daughter’s requests to buy something understated and environmentally sensitive with what they saw as a potentially profitable investment.

“She doesn’t want high-rise,” Mrs. Agrawal said. “She doesn’t want fancy. She doesn’t want amenities. We looked at every loft in Brooklyn.”

While the Agrawals are enthusiastic about the apartment that Ms. Agrawal chose, they haven’t figured out all of the decorating and financial arrangements. Mrs. Agrawal offered to resolve the dispute about the thrift-store couches by taking her daughter shopping and buying her new furniture. To make her parents feel more comfortable, Ms. Agrawal countered by proposing to have the couches professionally cleaned before they go to the new place.

The Agrawals do not plan to put the financial arrangements in writing. Because Ms. Agrawal is helping with the monthly payments, the deed to the apartment will be in her name and her parents’ names, her mother said. She added that they would give their daughter 20 percent of the profits when they eventually sell.

Ms. Agrawal said she did not expect her parents to share the profits with her. As she put it: “It’s extraordinary that they bought me an apartment. But it’s not what I expected. My parents have done enough for me.”

These financial relationships can become far more complicated when the apartment in question is a Manhattan co-op, because boards have come up with rules that limit how much financial help buyers can get from parents.

Brian Spence, a 29-year-old event planner in Manhattan at Deloitte, the accounting and consulting firm, discovered this late last year when he decided to live separately from his partner of five years, and he started looking for an apartment. He quickly found that many co-ops stated outright that they didn’t accept buyers who received help from parents.

While he had saved about $30,000 to buy a studio, he realized that he would need his parents to match that amount for him to come up with a 20 percent down payment.

In December, Mr. Spence found a 300-square-foot studio at 457 West 57th Street for $299,000 and persuaded the seller to accept $265,000. The co-op board required that he get his parents to put in writing that their contribution was a gift and that he did not have to pay it back.

So he called his parents in Midville, Ga., explained that he had negotiated a deal, and asked them to give him $26,500 and write a letter saying that this was a gift. They agreed.

“I was asking for an equity partner in this,” Mr. Spence said. “I felt like we were going into it together.”

His father, Gary Spence, a contractor, said that in 1972, his own father gave him three acres of land to help him build his first house and move his family out of a mobile home. He was sold on his son’s efforts to buy when he found that Manhattan prices had dropped slightly.

“I don’t really see anybody losing money up there,” Mr. Spence said.

Brian Spence said that there are some implicit assumptions about accepting his parents’ help. Three to four times a year, his mother and her cousins or her friends visit New York and stay with him. He expects that in his new apartment he will continue to play tour guide for his relatives. He also says that as their only child, he would be quick to move back to Midville (population: 457) if they ever needed his help.

His broker, Jamie Breitman of Bellmarc Realty, said that the smoothness of Mr. Spence’s deal was highly unusual.

But even parents and adult children who work out such financial details smoothly have different attitudes toward the arrangement. Marilyn Kane, who has run Butler Kane Commercial Real Estate in Manhattan with a partner for 17 years, offered to help her 26-year-old son buy a $500,000 one-bedroom co-op in Murray Hill.

The son, who has a different last name, asked not to be identified because he did not want his co-workers to know how much his mother had helped him.

In preparing to buy the apartment, Ms. Kane said, she encouraged her son to live at home so that he could save some money. After he had accumulated $50,000, she offered to set up a proportional investment agreement with him. He would pay 20 percent of the down payment, 20 percent of the mortgage, 100 percent of the maintenance and 20 percent of any renovations to the apartment. If they were to sell, he would get 20 percent of the profits. Ms. Kane said that she plans to put this agreement in writing before they close on May 1.

Ms. Kane, her husband and her son will have their names on the mortgage and apartment documents, but she said she had tried to limit the strings attached to the deal. She and her son shopped for kitchen appliances together and ultimately agreed on all of them.

“He has a good sense of taste,” she said. “I probably would have veto power if I thought it was awful because I wouldn’t want my investment to have something uncomely.”

Still, Ms. Kane wanted to help because she had not received help from her own parents and could not buy in Manhattan until she was in her 40s. “Truthfully, at times, I really resented it,” she said. “I believe in helping children and being generous, but not necessarily handing them things on a silver platter.”

Posted by M at 06:18:47 | Permalink | No Comments »

Subsidized Houses for Rich People

By EDWARD LEWINE
Published: March 18, 2007

Next time you sit down to write your monthly mortgage or rent check, consider this: In Santa Barbara, about 90 miles northwest of Los Angeles, a public-private partnership is planning to build a subsidized-housing development for some families earning as much as $177,000.

“It does sound unusual,” admitted Rob Pearson, the executive director of the city’s Housing Authority, which helped broker the deal for the development, to be called Los Portales. “But Santa Barbara is getting Gucci-fied. If we don’t do something, we’ll lose our middle class.”

The problem seems to be a matter of supply and demand, made worse by geography and public policy. With its stunning location, vibrant cultural scene and proximity to Los Angeles, Santa Barbara is a hot place to live. But the city is confined by the Pacific Ocean and the Santa Ynez Mountains, and strict zoning means that its 17 square miles are legally almost built out. The nearest affordable town is some 30 miles away.

City officials say they’ve worked to provide affordable homes for lower-income residents; about 12 percent of local housing stock falls into this category, much of it subsidized with public money. But with the average median home price in the Santa Barbara area hovering around $1.2 million, many well-employed citizens are finding it tough to buy a home.

“It’s even problematic for people like doctors,” says Martha Sadler, a housing reporter for The Santa Barbara Independent weekly newspaper.

Enter Los Portales. The idea took shape in 2002, when a developer named Jeff Bermant spotted an empty 1.75-acre lot near downtown. The Housing Authority bought the land for $3.5 million with money borrowed at a modest 4.5 percent interest rate from a philanthropic group, the Santa Barbara Foundation.

Rather than take a percentage, Bermant agreed to build for a fee capped at $2 million. Current plans call for 48 town houses, each with two parking spaces. The two- and three-bedroom units are priced between $495,000 and $595,000, well below market value. No taxpayer dollars will be used. “I call this a great experiment,” Bermant says. “I want to find a way to deliver middle-income housing for a profit.”

Interested buyers must show income less than 2.7 times Santa Barbara’s median income, or $177,660 for a family of four. The target income range for such a family, however, is between $130,000 and $145,000. The plan is for half the units to be sold with preference to people who work in nonprofit groups and for the other half to go to families who meet the income qualification and live or work in the city. The development seems to have local support, and Bermant says he hopes to start construction in September 2008.

“This is good for Santa Barbara” Sadler says. “Rich people are great, and it’s interesting to live with C.E.O.’s. But there are middle-class people who are great, too.”

Posted by M at 04:41:25 | Permalink | No Comments »

Souped-Up Student Housing

Nikolas Koenig

Lap of Luxury: A living area at Loft-Right near DePaul University in Chicago.

By CAMILLE SWEENEY
Published: March 18, 2007

Few of us long for the days of dorm living — the cramped quarters, the thin foam mattresses, the unsavory communal bathrooms. But imagine a different kind of student housing, one with loft- and villa-like settings, private bedrooms and baths, professional-style kitchens with granite countertops, weekly housecleaning services, plasma-screen TVs, wireless and high-speed Internet connections in every room, fitness centers, swimming pools, even hot tubs and tanning booths.

Nikolas Koenig
A bedroom at Loft-Right near DePaul University.
Nikolas Koenig
The pool at the Callaway Villas near Texas A&M University.

“The hot tub is my favorite part,” says Weston Selman, 20, a biomedical science major at Texas A&M University. He lives in the resort-like Callaway Villas in College Station, Tex., an off-campus complex built and run by a private developer, and pays $599 a month to live in a four-bedroom, four-and-a-half-bath town house with three roommates. “My sister lived in the Callaway House before me,” Selman says, “and I was like, ‘Wow, I can’t wait.”‘

No one has compiled statistics on the number of high-end student residences in the country, but James Baumann, a spokesman for the Association of College and University Housing Officers-International, says that with the surge in the college-age population, demand for student housing has soared, and private builders are rushing in to meet it.

“Student housing has been the best-kept secret in the real estate market,” says Bill Bayless, chief executive of American Campus Communities, which owns Callaway Villas, as well as 39 other high-end student residences nationwide. “These students want the amenities they grew up with at home — their own rooms, their own baths, along with some of the finer things in life. They’re a more sophisticated consumer.”

And some parents are willing to pay as much as 50 percent more than the cost of a comparable campus dorm room for a private room in an outsourced, off-campus “dormitel.”

The relationships between private developers and the schools whose students they house vary widely. “I’ve seen everything from partnerships to more of a ‘we know what you’re doing and we approve, but that’s it’ on the part of the college or university,” says Robert Bronstein, the president of the Scion Group, which operates student housing developments nationwide, including Loft-Right for DePaul University students in Chicago. “But we have to be good citizens in the eyes of the school.”

As for whether the students are good tenants, Bronstein says: “At Loft-Right, we’re prepared. We use a higher-grade drywall that doesn’t damage as easily. We even have covers for the fire alarms, which cuts way down on the pranks.”

Posted by M at 04:40:36 | Permalink | No Comments »

TV Land

 

By ROB WALKER; Published: March 18, 2007

What makes a house a home is a topic suitable for poetry. But a house or a home is always something else. It is property. Does this fact contain poetry? Probably not. But it does contain entertainment. It’s a form of television entertainment I’d never paid the slightest bit of attention to until I got involved in buying property myself, which happened right around the time that the long housing boom was unraveling last year. Previously invisible to me, these entertainments were, for months, the only things I wanted to watch. Buying, selling, updating, restoring and “flipping” for quick profits — it all ran together, but I watched even when I couldn’t remember if the title of a certain show was “Flip This House” or “Flip That House.”

It turned out these were two different shows, and with every “pain of U.S. housing slump” headline, the inventory of real estate entertainment looked a little more glutty. It made me ponder this curious genre’s fate. Like sunny sellers’ agents, television executives and producers assured me that such shows had a post-housing-bubble future that was already in the works. I looked for signs of what that might mean as I watched, and pondered just what it was I was tuning in to see.

HOW TO EXPRESS THE SELF

In the distant world of 1980, episodes of “This Old House” began appearing nationally on PBS stations, documenting the restoration of an 1860 Victorian in Boston. Long, calm, detailed and earnest, the project carried the warm glow of education and New England do-goodism. In time, “This Old House” became a franchise (multiple shows, books, a magazine); its original star, a builder named Bob Vila, left in a dispute over endorsement deals and became a brand unto himself. The Thoughtful Improvement ethic — or at least the phrase “do it yourself” — became a trendy idea.

Entertainment is supposed to be better in the hundreds-of-channels present than it was in 1980, but of course new places for expressing ideas do not guarantee new ideas. The upshot is that what used to be a concept for a show is now the basis for a genre, in the form of dozens of shows, entire channels, a category. The HGTV channel went on the air in 1994 and is now in more than 91 million homes; it’s owned by Scripps Networks (which also owns DIY Network, Food Network and Fine Living). HGTV is a soft, warm, pleasant place where nice ladies make quilts during the day and nice young couples redecorate at night and lots of “tips” are shared. Here the home is an expression of the self: Michael Dingley, senior vice president for programming and content strategy, says the channel aims to “provide ideas and inspiration, to make the home better.” He continues, “And I don’t mean home as in the sense of four walls, but also home in a more emotional kind of way, more abstract.”

In 1999, the channel started “House Hunters,” which is now on five nights a week and is among its most popular shows. On each episode, the hostess, a genial automaton called Suzanne Whang — always shown wandering through some anonymous suburban environment — gives us a chipper sketch of the house hunter and his or her desires (the software engineer seeking a shorter commute, the single mom looking for space, the tedious young English prof who wants to have poets over more often, etc.) and three available choices. She remains in her undisclosed location as we follow the hunter through the houses, scrutinizing pros and cons, while canned music plays just audibly enough to subtly suggest that something is happening. The episodes conclude with a decision, and usually a coda about how it all worked out perfectly.

In part, “House Hunters” simply recreates the way that property functions as entertainment in the real world: like scanning the real estate pages for new listings and going to open houses, it’s a part of the mildly voyeuristic pastime of “seeing what’s out there,” of taking a peek at how other people live, a crash course on the market in Chicago or Atlanta or elsewhere.

Along with HGTV’s home design shows, Dingley maintains, such programming demystifies property, and has “enlightened and empowered consumers.” He uses the phrase “relevant entertainment.” On “House Hunters” you may learn that $379K gets you a surprisingly nice 3 BR, 2000 SF, 1927 Craftsman in Seattle. But by and large these happy families are all the same: enlightened and empowered to congratulate themselves for having the same instinct for which wallpaper is “dated” and which mantle has “a lot of character” that everybody on all the other shows has.

Meanwhile, much is left out. Buyer’s remorse, for instance, never materializes. Almost all of the property shows avoid one of the screaming issues of real-life real estate, which is the neighborhood. No one mentions crime statistics, lousy school systems or proximity to homeless shelters or Superfund sites. In an episode of “House Hunters,” a cute young New Jersey couple move to the shore, specifically to Asbury Park, which Whang brightly calls “a majestic boardwalk town.” Have you ever been to Asbury Park? She adds that the place was made famous by the songs of Bruce Springsteen, and that’s true. For instance, it inspired “My City of Ruins.”

HGTV, Dingley explains, is not a “mean-spirited” place. “We’re not a snarky, mean, nasty brand.” Perhaps the channel offers shelter from gloomy homeowner news. “For most folks, a home is not only the most expensive investment in their lives, it’s also the most personal,” he says, and a rockier housing market sharpens the viewers’ interest in “making the right, prudent decision.” That said, its “relevant” programming has been expanding to encompass a bit more of the things that have dominated property entertainment on those networks that are a little less concerned about how mean-spiritedness might affect the brand: namely, money and drama.

HOW TO BE GREEDIER

The American entertainment consumer surely seeks enlightenment on matters of taste and style, but also on that other key aspect of the self, net worth. The soaring stock market of the late 1990s made CNBC almost as popular as CNN, supposedly because we’d become an enlightened and empowered nation of investors, but really because bull market geniuses loved watching a game they never seemed to lose. Tanking markets cleared up the difference between personal finance and rollicking fun, and CNBC’s viewership retreated to niche levels. The Thoughtful Improvement ethic of “This Old House” and the Something for Nothing ethic of Nasdaq-as-sporting-event come together in the form of the flip shows. Don’t make a home, don’t invest in a house — flip a property: how much money, how fast, for how little effort, can be extracted from a shabby, crumbling residence? Booyah! — as CNBC throwback Jim Cramer might shout — now you’ve got something.

TLC has included home-related programming since 1997 (starting with Bob Vila’s post-”This Old House” project, “Bob Vila’s Home Again”). And its show “Trading Spaces” — in which neighbors redecorate each other’s homes — was a home-entertainment milestone. The network began airing “Flip That House” in 2005. Every half-hour episode features a different “flipper,” some experienced, some with no particular background in real estate or construction but with an interest in what (on television at least) sounds like easy money. We learn the purchase price, tour the generally ramshackle property, and listen to an overview of planned updates and renovations. Usually a demolition montage follows: carpets ripped out, off-trend cabinetry smashed to pieces with a sledgehammer. Episodes involving experienced flippers tend to go rather smoothly, and I suppose the instructional payoff for the viewer comes in the form of tips. These generally involve granite countertops, Brazilian cherry wood floors, travertine tile. Often, the tips are communicated in the form of orders issued to the stoic head of some all-Hispanic construction crew, who simply nods.

The profit motive obliterates home-ness and all other topics. An episode involving a guy named Hay, who is “in the entertainment industry,” and restores houses in the area once known as South Central Los Angeles so he can rent them, begins: “The 1992 riots tore the city apart. But now it’s become an attractive destination for house flippers, hoping to turn their property into profit.” He goes over budget, and we learn to use angled paint brushes. When he’s done, the real estate agent says he can get $1,600 a month for the place.

The vague idea of learning from the pros animates “Flip That House” rival “Flip This House,” which runs on A&E. “We’re constantly looking to evolve the shelter brand,” executive producer Michael Morrison informs me. “And one of the trends in real estate, obviously, is house flipping.” “Flip This House” also made its debut in 2005, and rather than an endless series of flippers, revolves around recurring sets of real estate pros. The first season followed Trademark Properties, based near Charleston, S. C. and run by Richard C. Davis. The second season has focused on two different realty teams, one in San Antonio and one in Atlanta. “Flip This House” episodes each last an hour, and what’s added to the mix of tips are basic elements of drama. Most notably, the stars get more full-fledged character treatment.

The San Antonio shows are the serialized adventures of Armando and David Montelongo, who are brothers, and their wives. The series works more because the people happen to be entertaining than because they happen to work in real estate. Armando in particular has just the sort of polarizing charisma that can carry a show. A charming jerk, he lowballs subcontractors, bullies an unpaid intern and taunts his wife with a fistful of roaches grabbed from the kitchen of one nasty property he has acquired, pausing now and again to reflect on the all-American success story of his life so far.

In one episode, for no obvious reason, the brothers and their wives compete, flipping two houses at once to see who can make more money. By the time girls in bikinis arrive to distract one team’s subcontractors with free beer, the Enlightened Improvement ethic has been reduced to occasional text popping up on the screen making never-substantiated assertions about how much “value” a new fence or windows supposedly add to the final sales price.

Davis of Trademark Properties will be back on television soon enough, as it happens, with a new show over on TLC. It’s called “The Real Deal,” and it will, as he describes it, be firmly about the business of real estate. Davis is a creature relatively rare in entertainment but commonplace in real life: The Southern hustler, who doesn’t care what slow-witted stereotypes you read into his accent as long as he gets your money. Davis — still involved in a lawsuit against A&E that he filed after the channel decided to use those other groups in the second season of “Flip This House” — sounds flat-out thrilled about the end of the housing bubble.

Seven years ago, real estate was dominated by “A players” like him. Eventually, “you got to the point where you got your F players in the game—and making money!” Now that that’s over, “it becomes survival of the fittest, and cash becomes king,” he says, and the banks start telling loan-seeking F players to go back to their day jobs. He believes that this will be good not only for Trademark, but for his show. “Flip This House,” he says, ignored the important point that the key to his business isn’t mere remodeling prowess; it’s knowing how to find properties that are a bargain to begin with. The premise of his show is that he is an inspiring, visionary entrepreneur, and a down market will only make that clearer. “That’s when I’ll entertain you the most,” he says. “My most dramatic deals are always in a down market. That’s when it gets really crazy, and really fun.”

HOW TO ENJOY THE MISFORTUNE OF OTHERS

Watching other people make money because they’re smarter than I am doesn’t actually sound like that much fun, but there’s little danger of it on another flip show on TLC that I found perversely gripping, “Property Ladder.” All reality shows rise and fall on casting, and despite the show-opening tease (“Want to make more money in a few months than you did last year?”), here the producers seem bent on finding “real estate rookies” capable of catastrophe. One episode involved lunkhead buddies who got interested in house-flipping through an infomercial. In another, a newly married couple more or less disintegrate over the course of an ill-fated, months-long flip fiasco. Shouting matches feature prominently in nearly every installment.

Like “Flip That House,” the show focuses on a different project every week. The twist is an expert named Kirsten Kemp (billed as a veteran house flipper, she also, somewhat curiously, happens to have a bit-part acting résumé that includes appearances on “JAG” and “Married With Children”), who shows up periodically to give advice and pass judgment. My favorite episode involved a Simi Valley couple who bought a “wrecked” and “abandoned” house for $435,000 and not only planned to flip it for $600,000 after putting in $50,000 worth of renovations over 10 weeks, but pledged to do so in an eco-friendly manner. “We’re really supporting the planet this way,” the wife cheerfully explains, wearing an unconvincing smile that stays frozen on her face through the many disasters that follow.

Kemp openly scoffs at the particulars of their budget and makes a face when told about plans for a solar panel. She tells them they’re better off putting French doors in the master bedroom — that way they will actually add some value. Perhaps what ensues can be characterized as advice. The smiling wife buys eco-trendy bamboo flooring but “violated her green ideals,” as the near-mocking narrator puts it, when tiles made from recycled material prove too expensive. They also blow off some “energy efficient” windows in favor of the French doors that Kemp suggested, and of course they give up on the solar panel scheme as time runs short and their spending balloons. And when Kemp returns toward the end of the show, they inform her (big smile from the wife here) that not only did they opt not to install air conditioning, but they’re going to sell the house themselves so they won’t have to pay a real estate agent’s fee.

Kemp is TV-attractive, articulate and informed, but her most fascinating quality is her two-faced snakiness. She hugs her amateur charges, softens her stern advice and raised eyebrows with compliments and smiles - and then, alone with the camera, coldly enumerates how they blew it. In this case, Simi Valley’s summer highs average 91 degrees, and the for-sale-by-owner approach just proves that in addition to being naive, the eco-flippers are greedy. It will end up costing them money, she announces. And indeed, the show closes with a montage of months passing with no offer; an end note says they finally went with a listing service, and found a buyer, after more than six months. Cackling on my sofa, I’m pleasantly blasé about where I stand in the property zeitgeist. Aside from inspirational business savvy or handy news you can use, here’s another thing that’s entertaining: schadenfreude.

HOW TO ESCAPE REALITY

Property shows seem so profoundly American — it is our manifest destiny to own a 4,000-square-foot place in a good school district within five years of obtaining a college degree — it’s a disappointment to learn that the contemporary property entertainment model is largely an import. “Hot Property,” which first aired on Channel 5 in Britain in 1997, involved a prospective home buyer looking at three houses. The original “Property Ladder” runs on Channel 4.

Fenton Bailey is one of the founders of World of Wonder Productions, which creates programming for both the American and British markets. He’s British, and he lives in Los Angeles. Not everything works in both markets. A World of Wonder show that aired in Britain, “Housebusters,” addressed the problems of various homeowners — can’t make friends in the neighborhood, can’t seem to save any money since moving — by bringing in supernatural types like a “geopathic stress” expert, an electromagnetics guy, a feng shui advocate, a psychic and even a witch. Americans, he says, seem uninterested in home solutions that are less tangible than, say, buying a plasma-screen television, and Bravo passed on a United States pilot.

But the markets also have much in common. The key to property drama, Bailey says, is the key to all drama: transformation. “Very little of what’s on television is about accepting who you are and being happy with it. The old you, the threadbare you — no one wants to know about that.” If anything, he says, the British housing market has been even more overheated than the United States market, and got that way earlier. And finally, he says, “The destiny of television is to put everything on television,” so housing shows had to happen at some point.

“Buildings and interiors have been only something the very rich can enjoy,” Bailey continues. “They formed an elite pastime that’s been absolutely democratized by television.” World of Wonder also happens to be responsible for “Million Dollar Listing,” which ran on Bravo last year and probably made real estate more entertaining than any other single show, not least because it took place in Malibu, a world well beyond the reach of most of the democratized audience.

Over the course of six episodes, “Million Dollar Listing” deconstructed transactions and failed transactions in astonishing detail, giving a more complete version of the harrowing mix of emotions and egos and half-truths of the property drama. Getting suitable access to so many buyers, sellers and agents consumes a great deal of time, and Bailey says the first season of “Million Dollar Listing” took nearly a year to complete; a second season is being cast now. Bailey doesn’t sound worried about what effect the housing slump might have on the show, and it’s easy to see why. “Million Dollar Listing” deals with falling property values by unfolding in the borderline freak show of high-dollar Southern California, with characters who make Armando Montelongo look like a cream puff as they whine and wheedle in the never-ending sunlight of this promised land. By now we are far from “This Old House,” where an earnest discussion of cabinet installation might last three or four minutes and include the phrase “medium density fiberboard with a thermofoil wrap.” The only practical bit that I picked up from “Million Dollar Listing” was the superiority of “whitewater” ocean views to regular old ocean views. You can’t get any further away from everyday reality without actually making things up.

HOW TO OBLITERATE THE SELF

“Many citizens set out to buy a house because of an indistinct yearning, for which an actual house was never the right solution to begin with and may only be a quick (and expensive) fix that briefly anchors and stabilizes them, never touches their deeper need, but puts them in the poorhouse anyway.” So observes Frank Bascombe, narrator of Richard Ford’s novel “The Lay of the Land.” Bascombe drifted into realty in Ford’s earlier novel “Independence Day,” and while he may have done so in order “to keep something finite and acceptably doable on my mind and not disappear,” he is perhaps the wisest observer of property drama we are likely to have.

The agony of property, for example, is rarely more visceral than in the long episode in “Independence Day” in which Bascombe deals with a Vermont couple whose problems will most likely not be solved by a new home in New Jersey. “The realty dreads,” in his view, are never about lost money or the wrong house, but “in the cold, unwelcome, built-in-America realization that we’re just like the other schmo, wishing his wishes, lusting his stunted lusts, quaking over his idiot frights and fantasies, all of us popped out from the same unchinkable mold.” Thus when Bascombe successfully leads clients “toward a feeling of finality and ultimate rightness,” he achieves an outcome that is “not poetry but generalized social good with a profit motive.”

Television, however, differs from literature in the following way. The dramatic shows, for all their tears and shouting matches, in the end, read as harmless, campy cartoons. It’s the happy shows full of smiles and high-fives — the ones that loudly promise us that you need not worry about unchinkable molds when you can consider how much airier the living room will feel if you simply move that sofa — where, every so often, thin cracks in the happy facade can reveal things wholly unintended.

One of HGTV’s newer hits, for instance, is the perfectly upbeat “Designed to Sell.” A relatively winning host named Clive introduces us to someone who is having trouble selling a home and brings in experts to improve things as much as possible for $2,000. One step in the process involves the homeowners watching a videotape of a real estate agent walking from room to room, enumerating what they’ve done wrong. The basic lessons recur over and over: reduce clutter, define the space, brighten up this bedroom, do something about the dated window treatments, and please, American house sellers, pack away your myriad collections of weird figurines immediately. What we learn, in other words, is that despite the supposed home-design revolution, you people have not gotten the point.

Clive and a rotating crew of design experts soften the blow by reminding the homeowners, and us, just what the point is: money. “More light, more space . . . more money,” one designer announces. Replace this “losing-money lime” color with a “money-making mushroom” hue, Clive advises, and “Top dollar!” he says, many times. So the homeowners shrug off the remarks about their grandmotherly decor by smiling and saying, for instance, “Ka-ching!’ Or in one episode, huddling with the design team and chanting, “One, two, three — money!”

A remarkably similar show called “Sell This House,” on A&E, stars Tanya Memme, a high-energy party girl type who favors plunging necklines and has no obvious skills, and a bulbous-muscled bear named Roger, identified as a “home design consultant.” In this version, the flummoxed homeowner listens to the snide, videotaped remarks of random prospective home buyers. The most crushing episode involved a faultlessly polite Southern woman whose wallpaper looked to be 31 years old for the simple reason that she had never stopped liking it. Other features of her long time home include shag carpeting, a mind-boggling menagerie of tchotckes and a mailbox done over to resemble a fish. The videotaped critiques are much what you’d expect, with the added insult of some ill-mannered oaf saying that the place “smells like old people.”

“I will admit,” this sweet woman tells Tanya Memme, “I did cry.” She knows full well that her things might seem idiosyncratic — but they are her things. And she cannot for the life of her see what difference that makes. “If they buy the house, there won’t be any of this stuff here,” she says, reasonably. “That was my version.”

Here we learn the ultimate lesson of these shows: You can look at a free-standing building wherein some persons reside, and you can spin house-or-home poetry out of that all day long. But at the end of that day, property is what it is. Your home can look like an expression of you, but your property needs to look like a Pottery Barn catalog. Your wallpaper decisions may have expressed your individuality when you made them, but you are not an individual anymore, and no one wants to think about you. Stop expressing yourself. This place you live needs to look, in fact, like the total obliteration of “you,” because selling property is about someone else’s dreams of self-expression and taste.

Tanya and Roger rip up the carpet and consign to storage every object that means anything to the nice Southern lady. When the show ends, Tanya brightly informs us that prospective buyers are giving it “a second look.” In other words, it hasn’t sold. One imagines the dignified and bewildered owner imprisoned there still, looking around at the catalog pages that have become, not so much her home, but merely the place where she lives.

Rob Walker writes the Consumed column for The New York Times Magazine and is working on a book about consumer behavior.

Posted by M at 04:39:50 | Permalink | No Comments »