In an effort to save their multimillion-dollar office project, the Kobor Family sought to have the Beverly Hills City Council approve changing the project from a Class A Office Building to a medical facility. But their appeal was denied in a narrow 3-2 vote by the Council who acknowledged the collapse of the office market, but ruled against the changes because of concerns of increased traffic at one of the City’s busiest intersections.

“Our burden was to affirmatively determine that there would be no significant impacts with the zone change from Class A office to medical, we could not make that finding,” said Councilman Barry Brucker, who voted against the medical proposal along with colleagues Dr. William Brien and John Mirisch.

“Three councilmembers made the finding that the added traffic and parking associated with the proposed medical building would indeed be a significant negative impact on the neighborhood, circulation around Horace Mann School, the retail on Robertson and the surrounding residential community,” said Brucker.  

At Tuesday’s marathon City Council meeting that concluded at 2:30 a.m., supporters of the proposed medical building at 8767 Wilshire stated City National Bank revoked the property’s construction loan because of the high vacancy rate of office buildings in Beverly Hills. The Kobor family’s attorney Benjamin Reznik stated the bank implied if the project allowed for medical, they would reconsider issuing the loan (CNB declined to comment on the loan).

The applicant was now asking the Council  for 54,900 square feet of medical use, 1,118 square feet of pharmacy, 2,000 square feet for a café, or sundry shop, and reducing the amount of parking space from 336 to 285—still 70 more than what the code requires.

The proposal had already been denied by the Planning Commission last September.

More than 20 residents spoke against these changes, citing traffic as their primary concern.

Daily trips to the building would increase from 1,321 to 2,970 a day, according to Director of Community Development Susan Heely Keene.

Brien noted that street regulations prohibited traffic heading north south on Robertson from making a left turn into the building’s one entryway. It would force vehicles to circle the streets in nearby neighborhood, he said.

“I could not make the affirmative findings required to prove that this project this did not have adverse impacts to traffic and parking affecting businesses and residents,” said Brien.

Aside from traffic issues, the City’s Treasurer Eliot Finkel pointed out a medical building would not bring in as much tax to the City as an office building. City Chief Financial Officer Scott Miller estimated office generates $487,367 for the City, more than $100,000 than medical use.

Reznik stated to The Courier last week if the change was not approved the project that is in mid-construction would not finish.

With the project in limbo, Tuesday’s City Council meeting was tense as opponents of the medical use came out and took aim at the City’s mayor for her decision to support the change.

Ken Goldman, president of the Southwest Homeowner’s Association, went as far as to shout at Mayor Nancy Krasne when he asked the 20+ speakers be allowed more than two minutes each to talk at the meeting that lasted seven hours.

 “You are here as elected public officials,” he said. “If you can’t stand to stay late, when (we) are affected by this decision 24/7 that’s your problem.”

Krasne replied: “You want to yell at me Ken, go ahead.”

Despite the opposition from her constituents, and former campaign supporters, Krasne ultimately voted for the proposed medical building, alongside Vice-Mayor Jimmy Delshad.

“This has no residential adjacent,” said Krasne. “There is no R-1 next to it … It is North, South, West, East all commercial. If I were doing planning I would have put it here. It is down the street from Cedars.”

She continued, “ (Yes), they applied as office, but people do change their minds…. There are enough divorces in this City to prove people do change their minds.”

However, the majority of her council did not agree.  

“I believe that this zone change request was solely about increasing the developers return on investment,” said Brucker. “I found it disingenuous when the developer’s lawyer stated on the record that this was not about the money but simply about the ability to lease the building…   Interestingly when I asked him if he would be willing to pay into a City Traffic Mitigation fund the difference in rent between Class A office and Medical  he said no.

Brucker also challenged Reznik on whether or not the loan was pulled.

“This was not substantiated by any proof from the bank,” said Brucker. “It is not the City’s responsibility to guaranty a developer’s investment.   If we allow a “phantom”  Bank letter to determine City zone change policies then we are setting ourselves up for developers to request more floors, density and high impact uses based on the whim of a loan officer.”  

Mirisch raised the question, “If it is true that the bank said, “We’re revoking the loan, but we’ll reinstate it if the building use is changed to medical”, then we need to answer the following questions: do we want banks to determine our land use policy?”

 “Banks, who like many other American businesses, only look to the next quarter’s profits, while we need to think long term for our community.  

“Also, do we want to make land use policy on the basis of threats?  Or under the threat of blackmail?”

ahood@bhcourier.com