July 1989

·        LAUSD certifies its Final EIR for the New Los Angeles High School No. 1., identifying the Ambassador Hotel property (the Property) as its preferred site.  In its project description, LAUSD shows a 2,500 student High School on the southerly 15 acres of the Property (fronting 8^th Street) and a 2 million square foot development on the front eight acres (fronting Wilshire Blvd.).

September 1989   

·        Wilshire Center Partners (WCP) purchases the Property for $64 million at an auction conducted by the Property’s former owners (over $22 million in cash with the remainder in a purchase money note).  LAUSD does not bid on property.

November 1989

·        LAUSD approaches WCP.  LAUSD and WCP begin discussions regarding LAUSD’s interest in Property. WCP proposes finding a suitable alternate site for the school project.  LAUSD provides WCP with site and program criteria.

January 1990

·        Trump West Realty joins partnership.  The partnership’s name changes to Trump Wilshire Associates (TWA).

February 1990

·        LAUSD goes before the State Allocation Board (SAB) to request a $75 million allocation to purchase the entire Property.  TWA presents a study to the SAB that shows five alternate sites.  The SAB does not approve LAUSD’s request, but agrees to consider a $50 million allocation in 60 days at the April SAB meeting, if LAUSD and TWA cannot come to an agreement by that time.

April 1990

·        LAUSD offers $73 million for the Property.  At that point TWA has more than $75 million invested in the Property.

·        TWA completes two months of discussions with LAUSD.  During this time TWA meets regularly with LAUSD.  LAUSD proposes joint development of the property (school and commercial development).  TWA declines.  TWA researches and proposes alternate sites acceptable to LAUSD. LAUSD rejects the alternate sites and indicates that it wishes to pursue the Property.

·        At the April 1990 SAB meeting, both TWA and LAUSD make presentations to the SAB on LAUSD’s allocation request. LAUSD argues that no property is too expensive for the children.  TWA discusses the alternative sites. Two members of the seven-member SAB board are absent.  The SAB postpones the vote for another month. Meanwhile, SAB staff is instructed to visit TWA’s alternate sites, and review LAUSD’s proposed financing for the project.

April 1990-July 1992 

·        In April 1990 LAUSD settles litigation with the LA Conservancy over its 1989 EIR for the Property.  In the settlement, LAUSD agrees to perform a reuse study of the existing hotel structure.  During the period of January 1991 through May 1991 LAUSD conducts a reuse study for the existing hotel improvements. LAUSD postpones the public hearing for the reuse study more than eight times.  LAUSD certifies a Supplemental EIR for the Re-Use plan in July 1992.  Despite the LA Conservancy’s urging to further investigate the feasibility of utilizing a portion of the existing hotel structure, LAUSD votes to demolish the site’s improvements for the school.

May 1990

·        LAUSD considers a Resolution of Necessity to Condemn the entire Property at a board meeting where it is also electing to make budget cuts to accommodate a $220 million budget shortfall.  Decision on the Resolution is put over to June.

·        SAB staff prepares its report for the May SAB meeting.  Staff recommends that the SAB disapprove the requested allocation for the Property and that two of TWA’s alternative sites be studied further by LAUSD.  These sites are rejected by LAUSD at that time; however, today they are being considered as alternates to the Belmont Complex.

·        After disapproving LAUSD’s request for a $75 million allocation for the entire Property and disapproving a first vote for a $50 million allocation for the southerly 17 acres of the Property in a first vote, the SAB approves in a second vote an allocation of $50 million from an unspecified future bond issue. 

·        As a condition of the allocation, the SAB requires LAUSD to adopt a resolution that it will not seek anything above $50 million for the southerly 17 acres, regardless of its ultimate cost.  LAUSD agrees to adopt such a resolution.  After the SAB meeting, LAUSD Board president Jackie Goldberg tells the press that LAUSD “will have the dirt by Labor Day”.

·        LAUSD makes a revised offer of $47,919,000 for the southerly 17 acres of the Property.

June 1990

·        LAUSD adopts a Resolution of Necessity to Condemn the southerly 17 acres of the Property for a 2,500 student high school.

July 1990

·        LAUSD files a Lis Pendens and Compliant in Eminent Domain to condemn the southerly 17 acres of the Property.  In its division of the Property, LAUSD draws a line through the structure of the hotel.

August 1990

·        LAUSD withdraws $47,919,000 from its Worker’s Compensation reserve fund and makes its deposit of probable compensation into the court, thereby freezing the “date of value” for the condemnation. With the placement of the deposit by LAUSD, it can now file a motion to take immediate possession of the Property and commence construction of its proposed High School project.

October 1990

·        LAUSD sells $67 million in Certificates of Participation (COP) to replace the Worker’s Compensation funds it removed in August.

December 1990-February 1991

·        TWA withdraws the $47,919,000 deposit from court and repays the principal and accrued interest on the Property’s purchase money deed of trust.  In doing so, TWA waives its right to challenge LAUSD’s condemnation.  The only issue remains is the amount of compensation that LAUSD will be required to pay TWA for its property. 

September 1992

·        A representative of one of TWA’s partners approaches LAUSD seeking a quick resolution to the litigation and discuss LAUSD’s acquisition of the entire Property for $82 million.

·        The S-P Company puts the 24 acre 1st and Beaudry property on the market.

November 1992-March 1993

·        Between December 1992 and March 1993, representatives of TWA and LAUSD meet to discuss the sale of the property.

·        At LAUSD’s request TWA agrees to put lawsuit “on hold” pending the settlement discussions.

·        On March 16, 1993, LAUSD staff advised TWA that LAUSD would not be able to go ahead with the purchase of the property.  It cited two reasons: 1.) The possibility of a teacher’s strike (the teacher’s strike was averted), and 2.) LAUSD was facing a $65 million budget shortfall.

March-September 1993

·        TWA files a motion to request that LAUSD take possession of the property.  LAUSD declines, stating that it would be a hardship to have possession of the property.

·        In July 1993, in the LA Business Journal quotes Jim Colbert, counsel to LAUSD as saying that because of the date of value and the downturn in the real estate market, LAUSD will be forced to pay substantially more than the property’s current value.

September 1993

·        A Mandatory Settlement Conference is scheduled for early September, and the valuation trial is scheduled for November 1993.

·        In court at the Mandatory Settlement Conference, LAUSD counsel tells the court, that LAUSD does not have an offer for the property, it will soon be filing a Notice of Abandonment for the condemnation action.

·        LAUSD proposes purchasing the S-P Company’s property at 1^st and Beaudry for $30 million. 

·        At the September 22, 1993 SAB meeting, LAUSD requests that the SAB move $30 million of the $50 million Ambassador allocation to the S-P site.  District representatives state that they want to abandon the condemnation of the Ambassador Hotel site but not the project or the site. 

November 1993

·        LAUSD files Notice of Abandonment.  TWA files opposition to LAUSD’s Abandonment.

February 1994

·        Court enters judgment allowing LAUSD to abandon condemnation and requiring TWA to repay the deposit, less litigation expenses.  In persuading the court to enter the Judgement, LAUSD’s counsel states that LAUSD will not object to a stay of the enforcement of the judgment as long as TWA had a non-frivolous Inverse Condemnation claim pending. LAUSD records the Judgment and creates a lien on the entire Property for the amount of the deposit.

April 1994

·        TWA files complaint in Inverse Condemnation.

April 1994-February 1996

·        In April 1994, TWA appeals judgment allowing the abandonment of the condemnation action

·        In February 1996, Appellate court hears arguments on overturning the abandonment.  LAUSD.  Appellate court allows abandonment to stand.

November 1996

·        LAUSD certifies EIR for Belmont Learning Center Project.  EIR includes statement that condemning property from TWA would entail substantial legal risk for LAUSD.

April 1997

·        The Inverse Condemnation -Liability Phase is tried in the LA County Superior Court.December 1997

·        The court enters preliminary ruling regarding Liability in Inverse Condemnation case.  The court finds that LAUSD was guilty of deception, bad faith, and delay during the ‘92-93 settlement discussions, which resulted in an approximately four-month delay of the condemnation case.

·        LAUSD files a Notice of Levy on a Writ of Execution seeking enforcement of the Judgment.  The Levy is filed on the entire Property.

January 1998

·        TWA announces plans to build a 1 million sqft retail center on Property in order to pay LAUSD the judgment.

April 1998

·        Representatives of TWA meet with LAUSD to discuss a stay of the foreclosure so that TWA can get project financing and repay LAUSD.  LAUSD asks TWA if it would consider joint use of the property. 

May-June 1998

·        TWA studies the feasibility of joint use.

July 1998

·        Councilman Holden appears before LAUSD asking them to forbear on the judgment long enough for TWA to obtain entitlements and so that LAUSD can be repaid.  Holden tells LAUSD that he will get planning staff to focus on project approvals so that LAUSD can be repaid within a year.

August 1998

·        Trump West Realty withdraws from TWA, which changes its name to Wilshire Center Marketplace (WCM).

June-December 1999

·        Negotiations are held between LAUSD and a third party developer, with whom WCM is negotiating a joint venture.  These negotiations seek to find a possible settlement that includes deeding a portion of the Property to LAUSD for a school. 

·        In June 1999, Rich Mason assures the third party developer that as long as productive settlement discussions are proceeding, LAUSD will not enforce the Judgment.

·        July 1999, LAUSD files writ of execution to foreclose on property.

·        At a Wilshire Center Chamber of Commerce luncheon, new LAUSD board member Caprice Young makes public statements about a possible settlement between LAUSD and WCM.  This proposed settlement would include a middle school on the southerly 12 acres of the property and WCM’s retail center on the front 10 acres (with 7^th St. bisecting the property).  The community supports the project as a win-win solution. 

·        Councilman Holden agrees to support the project as long as the commercial portion of the project can continue to provide for the community’s economic revitalization.

·        During October through December 1999, the third party developer meets with LAUSD and presents settlement offers that includes a division of the site with one parcel for middle school use.

·        LAUSD repeatedly insists that it will not negotiate with WCM’s development partner unless and until WCM and the development partner come to a final written agreement between themselves.  An agreement between WCM and its developer is reached in mid-December 1999.

·        LAUSD declines to accept the offer proposed by WCM’s development partner.

September 1999

·        LAUSD terminates O’Melveny & Myers as its legal counsel.

January 2000

·        On January 20, 2000 the LA Sheriff’s Dept. serves WCM with Notice of Sale.  The sale date is set for March 22, 2000.

·        January 25, 2000, LAUSD votes to abandon the Belmont project.

March 2000

·        WCM is granted stay of foreclosure on March 21, 2000, the day before the scheduled sale.

·        LAUSD directs staff to study feasibility of a high school at the Ambassador Hotel site.

May 2000