Thursday, July 29, 2010.

Sepulveda VA – Government Giveaway of Veterans' Land

May 27, 2009 posted by Robert Rosebrock · 13 Comments 

75 Year Lease, $40 million for 147 apartments

By Dennis DeYoung

On May 20th the North Hills West Neighborhood Council hosted a Veterans Summit to discuss the latest developments in a long battle between the community and the VA regarding converting two vacant buildings on the 160 acre campus to apartments.  

Over 160 people attended and the overwhelming sentiment was against the development.  Many in attendance were veterans who feel adamant that giving any entity a 75 year lease with little or no accountability represents a giveaway of land that is sacred to veterans.     Citing a lack of jurisdiction over federally owned property, the city of Los Angeles last month declined to issue a variance to approve the development.  Although that may sound like a nail in the coffin for the development, the project developer (ACOF) and operator (New Directions) are considering appealing the decision. According to Peggy Burgess, stakeholder member of the North Hills Neighborhood Council Land Use Committee, “The zoning decision was a minor victory, but the war rages on”.

Los Angeles City Councilman Greig Smith has written letters to the agencies where he lambasted the officials for failing to obtain local support, especially from veterans’ groups. "As a veteran myself and father of a young man currently serving active duty in the United States Navy, and as a patriot, I take the matter of caring for our veterans extremely seriously," said Smith, whose district includes the VA. "… Unless you can modify the agreements as such, and obtain local support, I urge you not to appeal the (zoning administrator’s) decision."

The developers recently were able to modify state and federal laws and receive U.S. Housing and Urban Development Department approval to restrict the leases to veterans. However, during the meeting a speaker made it clear that the terms of the lease clearly permit the operator to rent apartments to non-veterans if they elect to do so.  Also, under the VA’s Asset Management Plan which governs the leases, and public law, the Secretary, Dept. of Veterans Affairs have the ability to sell or simply transfer (gift) all rights, title and interest in the land to the Lessees at any time during the 75 years.  Furthermore, the leases can also be reassigned and the property may be mortgaged for any amount.
 
Another concern looking down the road is that if the zoning variance somehow gets approved and the project goes forward, it will open up not only the 7 acres in question, but the entire 160 acres for further private sector development of all size and scope. None of which will likely benefit our veterans. They will lose not only their land, but their medical center forever.
 
I calculate that the proposed cost of this development works out to $272,000 per studio apartment.  It is estimated that the cost to build similar apartments from scratch would be about $100,000 per unit.  The buildings are already there and are in good shape.  In fact, they are currently used on a regular basis for filming which provides much needed jobs here in the Valley and significant revenue to the VA (estimated to be over $5 million per year).

Clearly, this income should be kept here locally for the benefit of the Sepulveda VA and not transferred to Washington or the “VA Asset Management Department”.  I would hope that Congressman Brad Sherman, Rep. Henry Waxman and Supervisor Zev Yaroslavsky (whose representatives were suspiciously absent at the meeting) and others look at this development very carefully and take into consideration the lack of support from veterans and the community.
 
This is not just a NIMBY issue, although I am sure that if I still lived in the neighborhood I would be concerned that hundreds of homeless people will be moving in next door.  I was born and raised a few blocks from the VA and with the Little League fields and par 3 golf course, the VA is a welcomed member of the community even for non-veterans.  With huge deficits at all levels of governments, spending $40 million on a project that benefits at most 147 people does not appear to be a good return on our collective investment.  Not to mention the funds necessary to keep the project going, regardless of demand.
 
At the meeting I asked Toni Reinis, Executive Director of New Directions, Inc. why her organization requested such a long lease period.  She indicated that the 75 year lease was necessary for her organization to obtain funding.  I would suggest that the VA start over and this time perform an open and transparent RFP bidding process.  I believe it is common sense that the VA should include a reasonable lease period as a prerequisite and that process may result in other agencies willing to accept a 5 or 10 year lease and provide the accountability to which taxpayers are entitled.
 
Only time will tell how this project will proceed.  The simple fact remains that these buildings were designed and built as medical buildings and should remain as such.  The veterans in the area and surrounding communities desperately want their hospital rebuilt and the Sepulveda VA restored as a full service medical center, starting with Buildings 4 and 5.
 
Whether or not the apartments are for veterans has never been the primary concern of the community.  The question we all need to ask is, “what is the highest and best use of the land and which serves the greater good ?”.  

Those apartments will house only 147 people permanently; however if the buildings are re-commissioned as medical buildings, they will house 300-350 veterans undergoing treatment at any given time. The Valley has nearly 2 million residents and there is now and will be in the future a significant demand for this facility as a medical facility. Stay tuned.
 
Dennis DeYoung is President of the Northridge West Neighborhood Council

  • Share/Bookmark

Comments

13 Responses to “Sepulveda VA – Government Giveaway of Veterans' Land”
  1. The Blue Max says:

    This is happening all across the Nation. Nothing that was promised to Veterans is sacred. Everything is up for political grabs. It will never change until Veterans band together and attack where it most hurts politicians: Their own children and grandchildren. How? Demand that the DRAFT be reinstated and that all must serve IN UNIFORM. No deferments, no nonsense. Got a health problem: Present it to a Board of 100% Disabled Veterans for decision. Will this work? Yes..because there is one thing we all know about politicians: THEY WILL TAKE CARE OF THEIR OWN! And when they do, the rest of the Veteran Corps will benenfit.
    Write your Senators. Write your Represntatives. Wriite your newspapers. Call and e-mail the Talking Heads, right or left wing. Until the DRAFT is back, Veterans will continue to be SBP (Screwed By Politicians), and all our bitching will be irrelevant. You want to win? Bring back the DRAFT. Never vote for anyone who is NOT for the DRAFT. It will take time but ultimately, we will win; IF NOT FOR OURSELVES – THEN FOR THOSE WHO FOLLOW US.

  2. Becie says:

    Great article, and true.

    Bit by bit, services have been taken away from the Sepulveda VA (such as the ER and mammograms for women). This will continue until Sepulveda is completely closed. The VA doesn’t really care for Vets—we are on the terrorist list of the Dept. of Homeland Security, for Pete’s sake!! The line in the sand is drawn. We are not going to take this laying down.

  3. Robert Rosebrock says:

    Thank you Mr. DeYoung, who speaks the obvious truth about the outrageousness of $40 million of taxpayers money, a 75-year lease of Veterans land and medical buildings, being prostituted away for a mere 147 studio apartments. A second-grader will tell you that this is an egregious scam.

    Toni Reinis is not being at all honest when she says that “a 75 year lease was necessary for her organization to obtain funding.” This is simply a transfer of ownership of Veterans property to a “non-profit developer” and a non-Veteran organization, with “A Community Of Friends.” Why aren’t they a “A Community of Veterans?”

    Lest we forget how long 75 years are, go back in history to 1934 and we were in the Great Depression, which was followed by World War II, the Korean War, Vietnam War, Persian Gulf War.

    Who has the crystal ball that says there will not be another major war and that Veteran healthcare facilities will not be necessary?

    Twenty-five hundred years ago Plato said “Only the dead have seen the end of war,” and nobody has been able to refute his prophetic claim.

    What’s going on at the Sepulveda and West LA VAs is politics, greed, corruption and sleaze at the lowest denominator. And the disgraceful way that the non-Veteran individuals, politicians and special-interest groups are trying to divide Veterans and shame us for not supporting these hoaxes is reprehensible.

    Have the perpetrators and supporters of this Sepulveda VA housing project conveniently forgotten that America is fighting two wars, in addition to there being 20,000 homeless Veterans in Los Angeles because there are no adequate healthcare facilities to treat PTSD and other mental and emotional injuries inflicted from the ravages of war?

    The West LA land was deeded specifically for Veterans to heal from war yet there’s a public park being built on 16 acres, a private wealthy school with 21 acres for an athletic field that is off limits to Veterans, Enterprise car rental has about 10 acres for vehicle storage, a Hollywood entertainment group controls the only two Veterans theaters for a “cultural community center, Donna Beiter, the executive director of the VA, a non-Veteran, lives in a 3-story mansion in quiet security on 20 acres of a huge maniicured lawn while 20,000 of our fellow Veterans are homeless in Los Angeles.

    There’s a very warm place in hell waiting for those who have aided and abetted in this, the worst treatment (torture) by a supposed civil nation, against the very defenders of its own freedom and safety.

    If New Directions is so pious and noble when it comes to offering homeless service to our Veterans, why didn’t they get the bid on building 209 at West LA VA? It’s because there is no money (profit) in rehabilitating homeless Veterans and that’s why they are going into the real estate development business with their board members who are all attorneys, CPAs, bankers, brokers, etc., the very people that raped Wall Street and fled.

    New Directions failed at operating the Veterans Village Diner at the West LA VA, in spite of grant money, private donations and hands-on business support and leadership from Anderson College of Business at UCLA.

    After a successful track record for helping homeless Veterans recover, they’ve departed from this and now have a successful track record for failing in business.

    Why are they being trusted with $40 million of taxpayers’ money? Give that money to the 20,000 homeless Veterans.

    And why is there a 50 year lease being negotiated for building 209 by Ralph Tillman, director of the VA’s asset management ? Why can’t the VA refurbish this building and lease it year-to-year to the best operator? Better yet, the VA needs to build six or seven high-rise residency towers for 5,000 Veterans at West LA which is specifically deeded as a “Home.”

    Will President Obama and Secretary Shinseki stand up on behalf of America’s Military Veterans. Will they display great leadership by telling Tillman, Reinis, Gallo, Waxman, Sherman and Yarolsavsky (all non-Veterans except Tillman) that there are plenty of real estate opportunities all around Los Angeles during this down market and that they can spend America’s hard-earned $40 million of taxes far better than heisting seven+ acres and two buildings from Veterans under the shameful guise of serving our Veterans.

    If they do not stand up now and take action with prompt removal of Ralph Tillman and Donna Beiter and rescind all “enhanced use leases,” then they will forever be associated with this traitorous act against America’s Veterans.

    God Bless America’s Veterans and The Veterans Revolution!

    • The Blue Max says:

      I agree with all you’ve so well written, but you ask if President Obama and Secretary Shinseki will stand up on behalf of America’s Military Veterans? The answer is “Only with words.” In my mind it always comes back to the fact that –with rare exceptions– politicans have no family members at risk. Ergo: Put them at risk. BRING BACK THE DRAFT. When THEIR kids come home and need a Veterans Hospital, there will damn well be one. You know it and I know it. WE just have to let other Veterans know it. and start the movement to BRING BACK THE DRAFT.

    • Robert Rosebrock says:

      The Blue Max:

      As always, your speaking the truth and common sense prevails at a time when dishonesty and nonsense has prevailed. It’s time for “change” and if President Obama is not going to change what has transpired over the past, then he will be a one-term president because the “sleeeping giant is awakaening” (24 million Veterans). We will vote out all incumbants and that is how Veterans will bring about the change that is needed.

  4. duffster says:

    This facility is now being used as a movie set?  What the hell does that have to do with veterans? 

    Why are we saying that veterans are a dangerous "homeless" element and need to be kept out of a community?

    Issues of lease length and transfer rights along with the language involving use by non-veterans should be included in this article. 

    The overall concept of a veterans only permanent housing facility seems flawed at the outset as does any attempt to have the VA build more medical facilities when they are unable to manage the ones they have.

    Currently, veterans housing takes precedence over medical care as an area of neglect, but little of substance has been included in any of the discussions.

    Have we identified the homeless vet population to be served?  Are there applicants for this housing?

    Are they disabled vets?

    Is the cost to benefit ratio on the investment worthwhile?  (no according to above)

    Get us some pictures and a copy of the proposal.  Attach them.

    g

    • The Blue Max says:

      Duff, when all the struggles are through, it will be another 2500 years.
      Join me in the battle to BRING BACK THE DRAFT. We will never win for Veterans until the children and grandchildren of politicians are in uniform, at risk, and in need of full fledged Veterans Hospitals when THEY come home. Until them, we may get lucky and win an occasional skirmish but never the war. VETERANS TODAY reaches across the Nation. Let the movement begin! I know that Rep. Charlie Rangle is for it.

    • Robert Rosebrock says:

      Gordon:

      There needs to be a full and open investigation at the Sepulveda VA and the West Los Angeles VA. The doors to all buildings need to be open so that we truly know how many buildings are empty, and those that are occupied … how is it benefitting Veterans only. Then the books need to be open so that we know exactly how much money is coming in and where it goes.

      Secretary Shinseki must clean house here in Los Angeles and fire all the incompetent bureaucrats at the top level. Then start investigating lower levels of bureaucrats for fraud and abuse.

      And the Blue Max is absolutely correct about the Draft. Not only will Veterans get the services they were promised, but the politicians will certainly think twice before send our military into war again.

  5. Jim Davis, Veterans-For-Change says:

    One thing I agree on is that the VA and our government little by little strips away at the VA, facilities, benefits, programs, treatments available, you name it.

    It has to stop, not tomorrow, not next year, or 20 years from now but has to stop TODAY!

    But as Gordon, and I as well as others have said, it won’t until veterans unite together as one and show Congress you’re not just a statistic on a paper they will never even read.

    Veteran Service Organizations are just sitting back and watching this all happen and not even attempting to do a thing about it, and IF they are it’s very secretive meaning it still won’t happen.

    Veterans, spouses, friends and family of veterans all need to speak up, say it loud and clear enough is enough.

    Stop with the foreign aid, stop cutting military spending, stop cutting back on VA programs, services and facilities, and stop selling of land which is surely going to be needed and soon!

    I am still amazed every day I talk to another veteran ask them to get involved and join the group I founded going on three years ago and the response I generally get is they will take away my benefits if I say a word.

    Frankly this is bull Cr*p! There are only three ways you can lose benefits. 1) Are declared 100% healed, 2) The DoD changes your DD-214 from honorable to dishonorable and the VA discovers this, or 3) you die, but then benefit pass on to your spouse!

    I’ve seen many people post very good idea’s, positive thoughts, but are you willing to take it to the next level and join a grass roots group willing to do the job needing to be done in a formalized group consensus and not even have to leave your computer for 30-60 minutes a month? Not even have to spend a dime on postage?

    Well here’s your chance again:
    http://groups.yahoo.com/group/VETERANS-FOR-CHANGE/

    At least check out the group page, sign in and join, and if you take a few minutes and check out what’s been done in the past and still aren’t convinced, leave. No harm, no foul!

    If you have questions, heck, send me an E-Mail with your questions and I will be way more than happy to answer every single piece of mail I get. JDAVIS92840@SBCGLOBAL.NET

    Put your anger and your fears to work for you, not against you.

  6. Peggy Burgess says:

    Thank you again, Dennis, you’ve gone right to the cruc of the matter and also exposed Toni Reinis for the liar she is.

    It’s doubtful any homeless person could even meet the occpancy requirements for these apartments. When I asked Reinis and Gallo aout this, I was told “oh, well the Veterans who will rent these apartments are entitled to secial benefit and grants (I’m paraphrasing here) so they will be able to affort the rents My next question was, well if they get all those extra benefits and grants, why are they homeless? Reinis and Gallo had no answer.

    Also, ACOF and ND have asked the DVA to amend the leases to read “Veterams Only.” that’s no problem because the leases can be amended or altered at any time for any reason during the 75 years. So the DVA can amend them today to read Veterans Only and tomorrow re-amend to the original language “Veterans Preference” or whatever they decide them to say which could be rent them to anyone or something much worse.

    Here are the occupancy requirements which I’ve copied and pasted Hope they are clear.

    CONDENSED RESIDENT OCCUPANCY REQUIREMENTS PER Exhibit E oi “ENHANCED USE LEASES’ Between The Department of Veterans Affairs, A Community of Friends and New Directions Sepulveda I and II For Proposed 149 Unit Apartment Complex to be located at The Sepuleveda VA Medical Center
    16111 Plummer St., North Hills, CA 91343

    Analysis Prepared by NHWNC Land Use Committee 12/3/08

    Applicant (or Homeless Veteran) must provide a Credit/Eviction Report Acceptable to New Directions. Applicant will be charged $15.00 for this Report.

    Verification of all income and assets of all family members is required

    Applicant (or Homeless Veteran) must post a Security Deposit equal to the Last Month’s Rent (per New Directions, current estimated rent will be $400-$450 per month.) Thus the homeless person (or Veteran) must come up with between $815 and $915 in order to move in. (This figure changes at the whim of the developers)

    Rents are due and payable in full on the first of each month.

    The lease states that the rent SHALL be increased annually.

    Rents must be paid by “cashier’s check, money order or some other secure form of payment” e.

    The rent is considered delinquent on the second day of the month. No partial payments will be accepted.

    On the fifth day of the month the Tenant (or Homeless Veteran) will be served with a three day notice to Pay the Rent or Quit.

    The Tenant (or Homeless Vet). will then be evicted.

    A judicial Unlawful Detainer action will be instigated so that New Directions may claim damages as part of the Court’s Judgment.

    If the damages are “significant,” a collection agency will be contacted to secure the judgment against the Tenant (or Homeless Veteran).

    In event Tenant (or Homeless Veteran) does not leave voluntarily, the Sheriff will move him, or her, out onto the nearest street, together with all of his/her belongings.

    No provision has been made as to the fate of the Tenant (or Homeless Veteran) after eviction.

    Our Comments:

    The representation in the lease that the proposed New Directions development is for the purpose of providing housing for Homeless Veterans is misleading in the extreme. It is unlikely that any “homeless” person or Veteran could meet these Residency Requirements. So, who will these apartments ultimately really be rented to?

    Buildings 4 and 5 are medical buildings, formerly the psychiatric and spinal cord units, and should remain as such or converted for other medical uses or treatment because such facilities are in short supply and are urgently needed for our returning troops, especially those with physical and/or mental disabilities including Post Traumatic Stress Disorder (PTSD).

    Both buildings are clean and in good condition. They can easily be refurbished and staffed as medical buildings. As such they will house 300-350 Veterans undergoing treatment at any given time. They must be reserved for Veterans who need housing while being treated for service related illness or injury, whether physical or mental disorder; or for those in need of Nursing Home.or Assisted Living care. And they should be free of charge!

    This Nation is at War! Tens of thousands of troops will be returning home to the Valley! They will need, deserve and are entitled to the Finest Medical and Psychiatric Care Money Can Buy! To deprive them of urgently needed hospital and medical treatment facilities and assets in favor of 147 rental units is Criminal!

    Peggy Burgess
    stakeholder/member North Hills West Neighborhood Council Land Use Committee.

    Below are the Occupancy requirements according to the ACOF and ND 75 -year Enhanced Use Leases.

  7. The Blue Max says:

    Let’s see now. So far we know that certain buildings are being used to make tv shows with all the money going everywhere except to the Veteran’s care. Now we see that the leases are a joke with a “change-at-will amendment clause;” From previous comments we know that it will cost 40,000,000 to create 149 apartments, but one lady said for that amount you could buy them each a home. Okay, sounds like California is still the land of fruits and nuts. Question for Ms Burgess: If New Directions finagles this deal, do they get the money form the filming and if so how much is that? Just curious. But then I believe in the old adage: “FOLLOW THE MONEY.” Methinks something is rotten in the State of California.

  8. joachin rhoades says:

    This question regarding the future use of the Sepulveda VA facility is stone simple: Why should any part of the site NOT be dedicated to the treatment of those who served our country?

    To allow any other use of the grounds would be a shameful step away from The Right Thing To Do.

  9. Charlie says:

    The same thing is taking place in Iowa. We have a VA hospital
    nearby that is designed for VA patients with mental problems. The VA
    in Washington is making deals for the city to take over the land, etc.,
    This all started under the BRAC recommendations. They have
    offered to build a CBOC for the Vets adjacent to the local hospital which
    has a terrible reputation to begin with. They have indicated all
    patients would be sent to Des Moines, where a new addition is being
    built. Vets are taking it in the shorts and something needs to be done.
    I have always said that when this war is over, the vets’ biggest war
    will just being – with their government. Looks like it is starting early.
    These damm civilians controlling the VA is a big problem.

Quick Links: Mesothelioma - Mesothelioma Treatment - Army Loans
Important Information for Veterans: Asbestos products were often used on military ships and within military housing, and Veterans may have been exposed. Previous exposure to asbestos is the only known cause of mesothelioma, a fatal cancer that has no cure and affects countless Veterans and loved ones. For more information regarding military asbestos exposure visit Mesothelioma.com
Member of the Veterans Business Directory