Client List Development Asset Management	HOLLYWOOD INDEPENDENT Wednesday, July 29, 1998 Three developers jockeying for project By Jullian Bailey In a scenario that would have been unpredictable 10 years ago, three entities are vying for the right to develop a property in the heart of Hollywood. The project is the Hollywood Parkade, a Community Redevelopment Agency‑conceived plan to establish parking and other consumer elements on a block bounded by Hollywood Boulevard on the north, Hawthorn Avenue on the south, Orange Avenue on the East and Highland Avenue on the west. After sifting through the responses to a statement of interest the CRA issued last year to tenants and property owners within the project area, the agency has winnowed the field to just three proposals, said Ann Marie Gallant, deputy administrator of economic development for the CRA. Gallant confirmed that one of the proposals comes from Yorkburry Development ILLC, which owns the building located at the southwest comer of Hollywood Boulevard and Highland Avenue. The commercial and residential real estate company has submitted plans to replace a souvenir shop and other retail stores with a 21 –story Marriott hotel, shops and a 2,000‑space parking structure.	Yorkburry development LLC has proposed this 21‑story Marriott hotel for the comer of Hollywood Boulevard and Highland Avenue.
	TrizecHahn Corp. has also thrown its name into the CRA's hat confirmed Gallant. TrizecHahn has already staked its claim cross the street with the Hollywood Highland project, a $350‑million entertainment‑retaiI complex being built with the agency's support. This time out, the real estate giant has teamed with Jeff Rouze, senior asset Manager with CUNA Mutual Insurance Co., which owns El Captan, to establish either a combination retail‑office development or a retail‑hotel development ‑ both with parking on Hawthorn Avenue. Because of on going negotiations, Hawthorn could not reveal the identity of the property owner who submitted the third proposal. Gus Sader, managing partner of Hospitality Asset Services, a San Diego based hotel management and consulting firm which is acting as spokesman for Yorkburry and its principal Mazen Nazzal, said the time is ripe develop in Hollywood. "Absolutely nothing was redeveloped or done regarding hospitality in the corridor for many years," said Sader, "and now because of the [TrizecHahn] project on the east side of our site and because of our economy and because of no new hotels in that area… we believe the time is right with this project." David Malmuth, vice president of development for TrzecHahn agrees. "I think there's a big opportunity for hotel development in Hollywood," he said. xxx So big, in fact, that there is room enough for both the hotel he is proposing for the Hollywood Parkade and the 171‑room expansion of the TrizecHahn owned Holiday Inn‑Hollywood across the street. Malmuth explains that the Holiday Inn is being redeveloped as a four‑star hotel while the proposed Hollywood Parkade hotel is envisioned as a three‑star facility. The retail component of the Parkade proposal also has synergy with the Hollywood‑Highland project, explains Malmuth, a number of "large entertainment‑oriented user” have indicated a desire to set up shop at the Hollywood‑Highland but were passed over because of the space configurations. These companies could be accommodated in the Hollywood Parkade, he said. Sader is unconcerned about the competition. "We presented our plans to the CRA [saying] this is our intention and this is what we like to do," he said. Noting the CRA lost the power of eminent domain earlier this year, he believes that in the long run Yorkburry will be able to go ahead with the plans regardless of the agency's position. ''They can be interested in anything but we own it clear and free, it is ours," he said. What's more, Sader points out that Yorkburry is seeking no city funds to build the $85‑million hotel/parking development. Gallant pointed out, however, that the Yorkburry property is located in the redevelopment district, which gives the agency the right to enforce "quality control" over what is built there by administering another level of land‑use regulation in addition to the city's standard process. Furthermore, she said that Yorkburry, which purchased its property in 1985, has been aware of the CRA's plans for the Hollywood Parkade since 1996. While the CRA's right to eminent domain expired in May, and it has not yet reapplied for that right the city is not precluded condemning a property to turn it over for public use, such as a parking lot. According to Gallant, the finalist will be chosen in September, but that person is free to cobble together under components of their plan and any other applicants or entities. "Once a finalist is selected for negotiations," she said, "it does not preclude that person from going back to the other property owners to say, "I want to do a deal with you."