Developer Makes NIMBYs Shareholders

The developer of a new condominium tower in Los Angeles gave local homeowner groups an equity interest in a future residential project in exchange for project approval.

"Developers often work out monetary settlements with associations to address the concerns of local homeowners. And in exchange for fixed payouts, the groups agree not to oppose a development."

Yet new twist in this practice is the case of New York-based Related Companies, which is developing a new condominium tower on the former site of a St. Regis Hotel in Century City, an area of West Los Angeles near Beverly Hills. The developer struck a deal with nearby homeowner groups, promising them an equity interest in another of the company's developments on the drawing board, given the neighbors a percentage of the income from the other condo project.

"Real estate industry professionals say that revenue generated by the nearby Century Woods Estates development – which has yet to move beyond the conceptual stage – would likely be quite a bit larger than a simple monetary settlement. It is unclear, however, how much money that would be.

'It is a gamble, but I would hope it would be in the many millions,' said Mike Eveloff, president of the Tract 7260 Association and a member of the coalition of homeowner associations that worked out the deal."

Full Story: Homeowners May Get Share of Future Project



NIMBY Shareholders?

Let's see, if you're an elected official with the power to block projects, it's highly illegal to take a bribe.

But if you're an unpaid neighborhood association official it's OK. Hmm... I think a whole new type of real estate specialist may arise from this. "The neighborhood association extortion consultant". A lawyer, no doubt.

Prepare for the AICP* Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $245
AICP CTP Storefont Display

The first online AICP* CTP exam prep class

Are you ready to take the AICP* Certified Transportation Planner exam?
Priced at $245 for May exam!
Book cover of the Guide to Graduate Planning Programs 4th Edition

Thinking about Grad School?

New! 4th Edition of the Planetizen Guide to Graduate Urban Planning Programs just released.
Starting at $24.95
Book cover of Unsprawl

Unsprawl: Remixing Spaces as Places

Explore visionary, controversial and ultimately successful strategies for building people-centered places.
Starting at $12.95