ONE QUESTION FOR … DAVID MALMUTH, AND IT’S NOT ABOUT SECOND+PCH
By Dave Wielenga
The back story: The arrival of tonight’s (Feb. 26) Academy Awards reminds me that it was about this time last year that developer David Malmuth spent a big chunk of a sunny-and-breezy afternoon talking with me in the back of the cave-like bar at Hof’s Hut—the one on Long Beach Blvd, just over a high hedge from Virginia Country Club. At the time, Malmuth was getting ready for his second run at the Second+PCH project, a massive, mixed-use makeover of the low-slung Seaport Marina Hotel, armed with a second Environmental Impact Report, a revised support team and a new, rewrite-the-zoning-code strategy. He said he felt re-energized. From California to the New York Island, this land (well, some very famous pieces of it, anyway) has been remade by Malmuth—for you and me, he’s always quick to insist. Malmuth’s fanfare for the common man worked in Manhattan, where he helped restore the New Amsterdam Theater on 42nd Street, just off Times Square. It worked in Hollywood, where Malmuth developed
the Hollywood & Highland complex that has brought the Academy Awards back to their ancestral home. But Long Beach, doesn’t buy it—possibly because Long Beach is a city where the common man actually lives. Malmuth’s seemingly more attainable goal—to build a retail/residential/hotel complex on a corner currently occupied by a disintegrating hotel—was furiously opposed by environmental groups, many residents and other large potential developers. Last Dec. 20, the Second+PCH project was rejected by the City Council, 5-3. After blowing nearly four years of his career on cajoling, a reported $4 million of property owner Raymond Lin’s money, who knows how much on City staff’s taxpayer-funded time and two Environmental Impact Reports, Malmuth is stuck on stupefied … again. Yes, again. Twenty years ago, Malmuth’s four-year, $10 million drumroll for a proposed DisneySea theme park by the Port of Long Beach fell through, too. But this is Oscar Night, when all anyone remembers are the winners.
The question: Years down the line, how do you feel when you look back at some of your highest-profiled projects—like at Hollywood and Highland, you know, and the Kodak Theatre, which brought the Academy Awards back to Hollywood in 2001?
David Malmuth answers: “Well, I’m my biggest critic. Anybody who gets involved in creating a movie, you know, or a real estate project—you’re aware of the things that you could have done if you had the money. Or you wish you could have fought harder. But, you know, on balance I feel pretty good about it. For example, when I watched the Academy Awards [on TV] … which … it’s always a trip for me to watch it. And they had this schematic on the television screen—it showed where in the Kodak Theatre that the various interviews between reporters and stars were taking place. You know? And I thought, “Well, how cool is that! You know? To see a schematic of the project that you developed? That’s great! In front of a hundred-million people? Yeah, I feel a lot of pride.
“And what I loved more than anything—and I remember this vividly—I did an interview about six weeks before the project was going to open, and somebody asked me, ‘How are you going to know if this project’s successful?’” And I said, “One thing I can tell you for sure is it’s not going to be judged six weeks after the project opens up—let’s talk again in 10 years.” Because while we have this instant-gratification society, real estate doesn’t usually work that way. Oftentimes, projects take awhile before they find their footing. So what I really wanted is to look back, 10 years afterward, and look at the other development that occurred in the area that was somehow inspired by what we did.
“And so I did, that night of the Academy Awards–I looked at what happened at Hollywood and Sunset, I look at the W Hotel and at what’s happened on the other side of the street, and I see some of the small-scale things … I feel good that we were part of helping to make that happen.”
















9 Comments
Apparently Mr. Malmuth is confident his 2nd & PCH development will be approved by city hall after all since he is now advertising it to prospective lease tenants to open in July 2014.
http://www.loopnet.com/xNet/MainSite/Listing/Profile/Profile.aspx?LID=17354837&SRID=2410807789&StepID=101&LinkCode=20280
Wonder if the same kind of insiders club picks the winners.
So his successes have come in dense, high-rise, super-urban environments.
NOW I understand why he thinks high-rises by the wetlands is a good idea.
If the only tool you understand is a hammer, everything gets pounded on, flattened, battered, rendered unrecognizable, pummeled and destroyed (cuz everything looks like a nail).
Not just the property — the people who live nearby, too.
So his successes have come in dense, high-rise, super-urban environments.
NOW I understand why he thinks high-rises by the wetlands is a good idea.
If the only tool you understand is a hammer, everything gets pounded on, flattened, battered, rendered unrecognizable, pummeled and destroyed (cuz everything looks like a nail).
Not just the property — the people who live nearby, too.
I have an just two questions for Malmuth, explain this-
“The project is an example of joint development, in which a public agency leases the right to develop a parcel in exchange for improvements to the property, in this case, an enhanced portal to the Hollywood/Highland Metro Red Line station. TrizecHahn leased 1.35 acres (5,500 m2) of Los Angeles County Metropolitan Transportation Authority land for 55 years at a rate of $492,000 per year (with additional increases added every five years based on the Consumer Price Index) and four 11-year optional extensions.[4]
Leading up to the construction of the development the City of Los Angeles was persuaded, through its Community Redevelopment Agency (CRA), to contribute at least $90 million in 1998 toward the initial construction of Hollywood and Highland. This was in addition to the costs of constructing the Red Line subway station below the mall.[5]
Trizec Properties Inc. sold its interest in the development for over $200 million in 2004 to CIM Group. This was a substantial loss and represented an investment failure as it was estimated that Trizec spent at least $625 million to develop the center.” http://en.wikipedia.org/wiki/Hollywood_and_Highland
or this about the
CIM “It now owns the long-disappointing Hollywood & Highland shopping center, which houses the Kodak Theatre. Despite endless assurances by City Councilman Eric Garcetti and his predecessor, Jackie Goldberg, the development has soaked up vast sums of public money and enjoys a key location at a crossroads for global tourism, yet has never delivered as promised to taxpayers.” http://www.laweekly.com/2009-09-03/news/cim-group-hollywood-39-s-richest-slumlord/
My third question would be, why doesn’t David Malmuth have any notable developments in San Diego, the city where he lives?
Considering all the recent development in downtown San Diego and near the gaslamp district, certainly there must have been some sort of development he would like to have pointed out in his own community as being his design.
Why weren’t Malmuth’s revitalization designs acceptable to the truely revitalized San Diego, but they are somehow OK for Long Beach and LA?
US Blues has the right take.In my view Malmuth is as disconected to DNA of Long Beach as is Councilman Gary De Long and Mayor Foster.
PCH/2nd is neither Hollywood/Highland;Hollywood/Vine;Vine/Sunset.
More to the point:
Malmouth apparently has as much difficulty in embracing and understanding the mandates and precepts of the Coastal Act–so central
to the quality of life in Long Beach—as our–Oh so over his head City
Manager has in:
l.Attaining common powers of understanding.
2.Not exuding a sense of one destitute of reason or divorced from
intelligence.
3.Understanding use patterns,how the they develop, consequence of
not keeping the errant patterns in check.
All of which are brought into sharp focus by the obtuse City Manager’s
four year, nine point,assault on the Long Beach Marine Stadium,which’would be as ruinous to the one of a kind recreational
small boating asset-found no where esle in the world-as would Malmouth’s
CANYON OF CONDOS which so enthrall the King of Flea Markets-
Gary De Long-and our Sacramento spurred Mayor.
RE; Hollywood and Highland seminmal structural flaw. Not withstanding
the positive aspects of the develpoment of that area(sans getting
into any discussion of the $$ issue-good or bad)…..
It would appear Malmouth’s grasp on the impact of wind patterns
is on par witht the above referenced mental twit(Long Beach City
Manager) grasp of martime matters.
Not factored in were the–far-far from weak strongs winds which
roar down through the Chaugena pass rendering to much of
the open upper plaazza level–far from inviting to repeat customers.
Even in-on all but the hottest of days—it to often is dank and
chiily—catching most off guard and unprpared for near winter
tempatures.
It should be noted however,the Kodak theatre is an outstanding
facility-perhaps second to none in the City-done in true Hollywood
style.
The mesasge to David should be the same as to the above
mental twit and as well as De Long and Foster(each grab a oar,
start walking North by North East. Stop not until you come upon
someone who asks you what you are carrying in your hand!!!!!
“After blowing nearly four years of his career on cajoling, a reported $4 million of property owner Raymond Lin’s money..”
Malmuth blew $4 million+ of OTHER peoples’ money on a project he KNEW violated all kinds of zoning rules and KNEW would not get past the Coastal Commission?
While the project was voted down by city council, I figured it probably wasn’t the last we’d hear from Malmuth about his proposed monstrosity. Malmuth must be a cajoling genius and/or Raymond Lin is some kind of high-functioning fool for doling out 4 million for a redevelopment project, which on the surface, was doomed from the start.
That 4 million might’ve been better spent rehab’ing and upgrading the hotel, and if Lin has that kind of cash to flush down the tubes, the hotel, even in its current dilapidated condition, must be some kind of money-maker.