By Steven L. Weinberg, founder, Hillsides Against Hadid

Forward

For years, the unfinished construction site at 9650 Cedarbrook Drive loomed over Franklin Canyon like an open wound.

The project conceived and developed by Mohamed Hadid was a hotel-sized private estate of approximately 75,000 to 78,000 square feet, perched along a prominent ridgeline adjoining Franklin Canyon Park.  Its plans included massive grading, an elevated roadway, enormous retaining walls and the destruction of substantial natural habitat.  By the summer of 2020, heavy equipment and large construction crews had transformed what had been a lush hillside habitat into a vast field of exposed earth, concrete and steel.

What followed was a five-year struggle involving neighborhood advocacy, new hillside-protection laws, multiple bankruptcies, disputed building permits, emergency court filings, accusations of political interference, a major defeat in the bankruptcy court—and, ultimately, a decisive victory in the United States Court of Appeals for the Ninth Circuit.

Hillsides Against Hadid was present at every critical stage.

HAH investigated the project.  It documented the destruction.  It challenged the legality of the permits.  It monitored the bankruptcy proceedings when virtually no one else from the affected community was doing so.   And when a single sentence spoken in bankruptcy court revealed that the City of Los Angeles might be preparing to extinguish the Cedarbrook permits—but might also be negotiating them back to life—HAH acted immediately.

That intervention helped transform an obscure permitting dispute into a public campaign involving neighborhood representatives, environmental agencies, elected officials and the City itself.

In the end, the original Cedarbrook permits from 2018 were judicially determined to have expired in March 2020.  The proposed mega-mansion lost its grandfathered status.  The property attracted no qualifying third-party bidder at auction and was transferred to its lender.  Any future development must now confront the substantially more protective land-use laws enacted after the original permits were issued.

This is the story of how it happened.

The Destruction That Started It All

Hillsides Against Hadid was formed in August 2020 after residents began sharing reports and photographs of a sudden and extraordinary construction operation at 9650 Cedarbrook.

The project had advanced largely outside public view.  Neighbors had received no meaningful notice or community hearing before construction equipment began removing trees, cutting into the hillside and erecting immense retaining structures.  The approved plans called for a residence exceeding 75,000 square feet, together with a roughly 2,000-foot elevated roadway supported by retaining walls reaching approximately 30 feet or more in height. According to Forbes, Hadid intended to sell the resulting mega mansion for $250 million.

The physical transformation was staggering.  Before construction, the Cedarbrook ridgeline contained mature trees, foliage and wildlife habitat.  By August 2020, large sections had been decimated, stripped and excavated.  To preserve the record of what had occurred to the hillside, HAH photographed and filmed the site from the ground and air using drones and other technologies.

HAH was created with three principal objectives: to investigate and disclose what was happening; to educate the public about the environmental and community consequences; and to work with elected officials and public agencies to secure meaningful protections for the remaining hillsides and wildlife habitat.

From the beginning, HAH was an independent, largely self-funded community effort.  It received no institutional financing and relied principally on volunteer time and out-of-pocket expenditures.

HAH Challenges the Cedarbrook Permits

By 2021, HAH’s investigation had identified serious questions concerning how the Cedarbrook project had been permitted initially.  On August 27, 2021, HAH founder Steven Weinberg wrote directly to the Los Angeles Department of Building and Safety and asked the Department to withhold all supplemental permits and consider revoking the existing permits.  The objections were specific and backed by expert engineering analysis.

The plans appeared to contain at least four separate retaining-wall systems, although only two were permitted by right without approval from a Zoning Administrator.  Multiple walls appeared to exceed the ordinarily permissible height of 12 feet, with some structures rising approximately 40 feet.  The amount of grading appeared to vastly exceed the amount permitted by right.  HAH also questioned whether the proposed building envelope exceeded applicable height restrictions.

HAH’s position was that the walls had been improperly characterized as components of the residence’s foundation, allowing the project to evade requirements that would otherwise have triggered discretionary review and public scrutiny.

While LADBS acknowledged receipt of the information, the inquiry did not immediately produce a public enforcement action.  But HAH continued to monitor the permits and the changing legal landscape.

The Bankruptcy— a New Opportunity to Protect the Ridgeline

Construction at Cedarbrook had substantially stopped by 2020 after the project experienced financing issues and creditors (including numerous subcontractors) sought payment.  The debtor’s later court filings acknowledged that work commenced in 2019 with grading, caissons and partial retaining-wall construction, but halted in 2020 when construction lending was pulled back.  The Cedarbrook ownership entity, Treetop Development, LLC, ultimately entered Chapter 11 bankruptcy in 2022.

Bankruptcy changed the battlefield. The project was no longer simply a dispute between a developer and a neighborhood.   It became an asset to be protected, financed and marketed for the benefit of lenders and creditors.  The existing permits were essential to that strategy.

While the bankruptcy proceeded, however, the law governing the property changed dramatically.

The Expansion of the Hillside Construction Regulation

The Hillside Construction Regulation (“HCR”) (Ordinance No. 184827) was passed in 2017 (LA Clerk’s File 16-1472-SI).  In a nutshell, the HCR requires any single family dwelling within an HCR District exceeding 17,500 square feet to obtain discretionary Site Plan Review approval under LAMC § 16.05 before any related grading, foundation, building, or land-use permit may issue. The threshold applies cumulatively, preventing developers from avoiding review through successive permits, piecemeal additions, or multiple buildings treated as parts of one larger project.  The HCR was a pilot program when initially passed into law and unfortunately did not include Coldwater or Franklin Canyons.  This loophole allowed developer Mohamed Hadid to obtain permits for Cedarbrook without any neighborhood oversight 

In early 2021, HAH and other community stakeholders advocated for the expansion of the HCR to include the Coldwater Canyon and Franklin Canyon areas. Through HAH’s efforts (including a recommendation by the Bel Air Beverly Crest Neighborhood Council), that expansion was adopted as Ordinance No. 187747 in January 2023 and signed into law February 2023.  The new HCR expansion created a fundamental problem for the Cedarbrook developers.  If their 2018 permits remained valid, they could argue that the enormous project was grandfathered under the more permissive land-use rules in effect when the permits were issued.

If the permits expired, the entire project would have to start over under current law—including the expanded HCR.  The proposed 75,000-plus-square-foot estate could not simply be resurrected as originally designed.

In short, the permits had become, in the debtor’s own words, the “life blood” of the bankruptcy case.  The debtor warned that losing them would drastically reduce the property’s value, require millions of dollars in restoration costs and force any future owner to create new plans under far more restrictive development rules under the HCR.

HAH Urges City To Scrutinize the Permits

When the City’s pandemic-related permit tolling period ended in February 2023, HAH renewed its request that LADBS closely scrutinize the Cedarbrook permits.  On February 1, 2023, HAH again wrote to LADBS, urging the Department to scrutinize the permits or, at minimum, refuse any additional permits unless the project fully complied with the new HCR.

The following morning, an LADBS structural engineering official responded:  “As far as I know, I believe all the permits related to Cedarbrook are revoked.”  The official said he would confirm the status.

That exchange demonstrated that the status of the permits was already under active consideration inside LADBS months before the decisive events of July 2023 (below).  HAH then continued monitoring the permit records and the bankruptcy docket.

On July 28, 2023, HAH once again wrote to LADBS and urged the City to review all existing permits, citing both the previously identified permitting violations and the absence of meaningful construction.  What happened next remains an open question in the Cedarbrook story.

July 31, 2023: The Permit Crisis Is Revealed

On July 31, 2023, the debtor filed an emergency status report in bankruptcy court. The filing revealed that, following a July 27 court hearing, the Cedarbrook team had learned that the City was threatening to expire the project’s critical 2018 building permits.  The City formally confirmed that position on Friday, July 28—the same day HAH sent its reminder to LADBS to scrutinize the permits.

The record does not establish whether HAH’s communications prompted the City’s decisions in any respect.  The timing is striking, but the City may already have been conducting its own internal reviews.   What is certain is that HAH had been urging permit termination since 2021, renewed that request when pandemic tolling ended and again contacted LADBS on the very day the City confirmed its intention to act.

The debtor’s lawyers reacted immediately.

According to a July 31, 2023 status report filed in court, they opened negotiations with the City and prepared litigation seeking an injunction.  By late afternoon on July 31, the debtor reported that the immediate threat had “abated” and that negotiations concerning the permits were continuing.

The report went further; it stated that the City had agreed not to proceed with permit expiration and had agreed to issue supplemental permits extending the building, retaining-wall and grading permits.  The debtor was also asking the City to confirm that the property possessed vested rights exempting it from more restrictive ordinances enacted after the original permits were issued.  In other words, the City appeared to have reversed course within hours.

That was the moment the story changed.

HAH Sounds the Alarm

As soon HAH learned the City maybe capitulating, HAH immediately contacted Council District 5, the Santa Monica Mountains Conservancy, the Mountains Recreation and Conservation Authority, and leaders of the Bel Air-Beverly Crest Neighborhood Council.  The message was straightforward: the City’s internal discussions with the Cedarbrook team could determine the future of the Franklin Canyon ridgeline, yet the affected community and environmental stakeholders had no seat at the table.

On August 2, HAH advised Council District 5 that LADBS had apparently first decided to expire the permits and then backed away.   It warned that, unless the community intervened immediately, the City might allow the project to retain 2018 grandfathered rights and avoid the 2023 version of the HCR which was expanded to now cover the Cedarbrook Site.

On August 3, HAH circulated the specific concessions the Cedarbrook team was seeking:

1.    Written confirmation that the City would no longer expire the permits for lack of meaningful construction;

2.    Written confirmation that the City would issue supplemental permits extending the building, grading and retaining-wall approvals; and

3.    Written confirmation that the property possessed vested rights against subsequently enacted ordinances, including the 2023 HCR and the proposed Wildlife Ordinance.

HAH urged immediate intervention before those requests could be quietly granted.

The environmental agencies responded.

On August 4, 2023, Paul Edelman, Deputy Director of Natural Resources and Planning for the Santa Monica Mountains Conservancy and MRCA, wrote directly to LADBS Chief Binh Phan.  Edelman urged the Department to freeze any permit reinstatement, questioned the legality of the retaining walls and grading, and warned that the project would inflict significant biological and scenic damage on highly accessible public parkland.

HAH Appears in Bankruptcy Court

On August 10, 2023, HAH appeared at the Cedarbrook bankruptcy hearing as a representative of Franklin-Coldwater community.  Numerous lawyers appeared for the debtor, lenders, brokers, land-use professionals, financiers and creditors.  The hearing concerned another $6 million in debtor-in-possession financing intended, in part, to fund “meaningful construction,” obtain supplemental permits and advance plans before additional land-use protections could take effect.

No creditor opposed the financing.  HAH did.

HAH told the court that the community opposed pumping more money into the Cedarbrook site and challenged the absence of transparency surrounding the debtor’s negotiations with City officials.  HAH also emphasized that the Hillside Construction Regulation had been omitted from the debtor’s presentation and warned that the court was not receiving the complete picture.

Next, HAH asked the debtor’s attorneys to identify the City officials with whom they were negotiating.  They refused, arguing that community interference could diminish the value of the bankruptcy estate.

The bankruptcy judge declined to halt the financing.  Preserving value for creditors was the court’s principal responsibility.  But the judge acknowledged the neighborhood’s concerns and observed that the community had other avenues through which to act.  HAH used them.

The Neighborhood Council Takes a Public Position

Following notice, on August 23, 2023, HAH presented the Cedarbrook issue to the Bel Air-Beverly Crest Neighborhood Council at a public hearing.  During the hearing, the Council voted unanimously to request intervention by Mayor Karen Bass.

The Council’s September 5, 2023 letter described the project as a roughly 78,000-square-foot mega-mansion atop the Franklin Canyon ridgeline and urged the City not to reactivate the permits.  The Council emphasized that permits were not intended to remain alive indefinitely and that allowing their revival would give the developer grandfathered rights unavailable to ordinary citizens.

The letter also documented the history as it was then understood: issuance of the principal permits in 2018; reactivation in 2019; substantial grading and habitat loss; cessation of construction in 2020; expiration of pandemic tolling in 2023; and the absence of renewed work on the residence.

Most importantly, the Council insisted that any future development comply with the current (2023) version of the Hillside Construction Regulation.

What had begun as HAH’s effort to uncover an internal permitting dispute had become the official, unanimous position of the community’s elected neighborhood council.

The City Stands Firm

After further review, LADBS did not implement the arrangement described in the debtor’s July 31 report.  Instead, the City concluded that the main-house and guest-house permits had expired in March 2020, before the pandemic tolling order took effect.  The City entered the expiration into its permit records and took the position that new applications would have to comply with current land-use regulations (i.e., HCR 2023).  That determination was critical to the economic premise of the Cedarbrook project.

Without the 2018 permits, the debtor could no longer market the property as a ready-to-complete, grandfathered mega-estate.  Any new owner would face the 2023 Hillside Construction Regulation, discretionary review requirements and the other protections enacted after the 2018 permits.  The Cedarbrook team responded by attacking both the City and the community advocates who had urged it to enforce the law.

The Developer Sues—and Blames HAH

On December 29, 2023, Treetop filed an emergency motion asking the bankruptcy court to issue an order to show cause against the City of Los Angeles.  The debtor claimed that the City had violated the automatic bankruptcy stay by expiring the permits.  It sought an order declaring the expiration of permits void, prohibiting further City action and preserving what it characterized as vested development rights.

The motion devoted an entire section to “Steven Weinberg and His Allies,” asserting that HAH, neighborhood representatives and environmental stakeholders had pressured the City to invalidate the permits and that HAH was “interfering” with its marketing efforts simply by urging professionals marketing the property to conduct due diligence before publishing statements the project was “fully permitted”).  The debtor cited HAH’s appearance in bankruptcy court, its communications with LADBS and the Neighborhood Council’s letter to Mayor Bass.

The debtor also argued that the City’s action was designed to accomplish the wishes of neighbors who opposed development at the property.  HAH made no apology for its involvement. 

Communicating community concerns to public officials was not improper interference.  It was the core function of a neighborhood representative and community advocacy organization.  HAH had raised substantial, documented questions about the permits beginning in 2021.  It had acted publicly.  It had communicated through official channels.  And it had asked the City to apply the same laws to Cedarbrook that applied to everyone else.  Indeed, the debtor’s own accusations confirmed how effective that advocacy had become.

The Bankruptcy Court Sides With Treetop

The first major judicial ruling went against the City and the community.  On February 7, 2024, the bankruptcy court granted partial summary adjudication in favor of Treetop. The court accepted the “estoppel” argument that the City’s continued inspections, communications and dealings concerning the project had induced substantial reliance by the debtor, its contractors and lenders. The court treated the permits and associated vested rights as protected property of the bankruptcy estate and effectively barred the City from enforcing its expiration determination.

For HAH, the ruling was alarming.  If allowed to stand, it threatened to transform time-limited building permits into nearly permanent development rights.  It also risked allowing the original Cedarbrook project to escape the more protective regulations enacted while construction sat dormant.

The City appealed directly to the Ninth Circuit.  During the appeal, HAH continued alerting environmental agencies and community stakeholders.  It also cautioned against a mediated settlement that might restore the permits before the appellate court could rule.

September 24, 2024: The Ninth Circuit Reverses

On September 24, 2024, a three-judge panel of the Ninth Circuit issued its decision.  The ruling was direct.

A developer may acquire a vested right by performing substantial work and incurring substantial liabilities in good-faith reliance on a permit.  But any vested right can be no greater than the rights actually granted by the permit itself.  Here, the Cedarbrook permits expressly stated that they expired two years after issuance.

Accordingly, even assuming Treetop acquired vested rights, those rights were limited by the permits’ express expiration dates.  The main-house and guest-house permits expired on March 19 and March 16, 2020, respectively—before the City’s pandemic tolling order took effect.  The court reversed the bankruptcy court and remanded the matter.

The decision rejected the central premise on which the Cedarbrook mega-mansion depended: that expenditures, inspections and alleged reliance could transform expired permits into permanent rights immune from later regulation.  They could not.

What the Decision Accomplished

The Ninth Circuit ruling did not prohibit all conceivable development at 9650 Cedarbrook.  Instead, it accomplished something more fundamental: it eliminated the claim that the original mega-mansion could proceed as a matter of right under permits issued years earlier.  Any future proposal must be evaluated under the current legal regime.  That includes the expanded 2023 HCR and applicable site-plan, grading, environmental, wildlife and discretionary-review requirements.  The distinction is enormous.

Under the old plans, the site was associated with a residence of approximately 75,000 to 78,000 square feet.  Under the present Hillside Construction Regulation, the allowable dwelling area has been described as approximately 17,500 square feet, subject to the City’s current review requirements.  Whether any project of that reduced scale is financially feasible is a question for the property owner. What matters to the community is that the obsolete permits no longer confer a special entitlement to build the original project.

The Auction That No One Wanted

The economic consequences soon became apparent.  Treetop attempted to market and auction the Cedarbrook property through its Chapter 11 plan.  But despite what the debtor described as diligent marketing, no qualifying bidder emerged other than Skylark, the stalking-horse lender.  The auction was canceled.

The bankruptcy court confirmed a liquidating plan on April 30, 2025.  The sale to Skylark closed on May 19, 2025, and the remaining estate assets transferred to a liquidation trust.

The absence of outside bidders was telling.  For years, the Cedarbrook team had maintained that the property possessed extraordinary value.  In court, it had previously relied on appraisals and opinions placing the value between approximately $80 million and $106 million, depending on the assumed state of completion.  But those valuations were tied to the ability to complete the permitted development.  Once the Ninth Circuit confirmed that the critical permits had expired, no third party was willing to submit a qualifying bid at the bankruptcy auction.

By September 2025, the property had transferred to Skylark, while the liquidation trust continued evaluating residual claims against the City.

The Role HAH Played

It would be inaccurate to claim that HAH alone terminated the Cedarbrook permits.  The final administrative decision belonged to the City of Los Angeles.  The legal victory was achieved by the City’s appellate lawyers.  The Ninth Circuit’s ruling turned on the language of the permits and California vested-rights law.  But it would be equally inaccurate to tell this story without recognizing HAH’s central role.

• HAH began documenting Cedarbrook in 2020, when the hillside destruction first became visible.

• HAH challenged the legality of the retaining walls, grading, height and permit structure in 2021.

• In 2021, HAH actively pushed community leaders and elected officials to expand the HCR to cover Franklin Canyon (and Cedarbrook).

• HAH renewed its push for scrutiny when pandemic tolling ended in early 2023.

• HAH was monitoring the bankruptcy proceedings when the debtor disclosed the permit crisis on July 31, 2023.

• HAH recognized immediately that the permits were the project’s “life blood” and that their loss would subject the property to the newly expanded Hillside Construction Regulation.

• HAH alerted Council District 5, MRCA, SMMC, BABCNC and other stakeholders.

• HAH appeared in bankruptcy court, opposed additional financing and demanded transparency concerning the debtor’s negotiations with City officials.

• HAH developed and circulated the legal analysis concerning meaningful construction and permit abandonment.

• HAH presented the matter publicly to the Neighborhood Council, resulting in a unanimous vote and a formal demand to Mayor Bass.

• HAH continued advocating after the debtor accused it by name of causing the City’s enforcement action.

• And HAH kept the coalition engaged after the bankruptcy court ruled against the City and while the case proceeded to the Ninth Circuit.

Community advocacy does not always produce immediate results.  Frequently, it consists of years of document review, unanswered emails, public meetings, court appearances, technical research and the persistent refusal to accept that a powerful developer is entitled to different rules.  That is what happened here.

The End of One Project—and the Beginning of Stewardship

The original Cedarbrook mega-mansion is no longer entitled to proceed under its 2018 permits.  The Ninth Circuit confirmed that those permits expired in March 2020.  The debtor was unable to attract a qualifying outside bidder after the permits were lost.  The property ultimately passed to its lender under a liquidating Chapter 11 plan.

The scarred construction site remains.  Massive concrete structures, retaining walls, excavations and disturbed hillsides cannot be erased by a court ruling. Questions remain concerning stabilization, restoration, future ownership and what responsibility the present owner and the City may bear for addressing the unfinished site.

But the greatest immediate threat—the revival of a grandfathered, 75,000-plus-square-foot mega-estate on the Franklin Canyon ridgeline—has been defeated.  The Cedarbrook saga demonstrates why permits must expire, why public oversight matters and why land-use protections are meaningless unless someone insists that they be enforced.  It also demonstrates what a determined community can accomplish.

HAH did not possess the debtor’s financial resources.  It did not have 25 lawyers appearing at each hearing.  It had no team of lobbyists, bankruptcy professionals, brokers or land-use consultants.

What it had was persistence, information, credibility and a coalition of people and public agencies who understood what was at stake.  The Cedarbrook permits were once described as the “life blood” of the project.  Today, they are expired.  And Franklin Canyon has a future the original plans would have taken away.

Steven L. Weinberg, Founder of Hillsides Against Hadid

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]]>The cedarbrook sagaSteven WeinbergSat, 02 Apr 2022 21:24:16 +0000https://www.hillsidesagainsthadid.org/news/conservation-group-acquires-hadid-properties-at-auction5f3de89131acf2125d4607b2:5f41d82e3ce4e4729adb4226:6248b01031dcbd5a172ebaf1As reported previously, the United States Chapter 7 Bankruptcy Trustee held a public auction on March 24, 2022 for the 65 acres of land that Hadid owned in Franklin Canyon Park, including parts of the Hastain Trail. The buyer of the land is “Castle Real Estate, LLC” which was formed in Delaware the day before the auction.

While not much is known about Castle, it is clearly aligned with Give Back, LLC in terms of conservation and, according to a recent public statement by a Give Back representative, the land is now “secured” from development, Hadid “is history” and “the trail is safe.”

Hillsides Against Hadid participated in, and closely monitored the Bankruptcy proceedings. Attorney Ron Richards led the group that masterfully wrangled the land from Hadid (requiring an outlay of tens of millions of dollars) and he and his legal team fought tirelessly for 16 months in the Bankruptcy Court to make this happen in the final quarter and moments before the buzzer.

In brief, below are some highlights of the story:

• Between 2004-2010, Hadid quietly bought up approximately 65.61 acres of private land in Franklin Canyon Park by way of two shell entities: Lydda Lud, LLC and Coldwater Development, LLC with plans to build six mega-mansions.

• In 2011, led by open-space advocate Ellen Paul, “Friends of Hastain Trail” commenced a lawsuit against Hadid to establish a public easement and permanent right-of-way over the Hastain Trail. While Ellen Paul and Friends prevailed against Hadid at trial (preserving access to the trail for the public and future generations), the decision was sadly and inexplicably reversed in the Court of Appeal in 2016. Hadid’s plans to develop then proceeded.

• In order to pay off existing debts (and fund mega-mansion developments like Strada Vechia), in March 2017, Hadid borrowed $25 million from Romspen California Mortgage and pledged the land in Franklin Canyon as collateral. Hadid then defaulted on the loan and failed to pay back Romspen as per the terms of the loan agreement. Although Romspen generously gave Hadid numerous extensions to pay the loan, by the Summer of 2020, Romspen was looking for an exit ramp.

• In July 2020, Give Back, LLC (a greenspace and land conservation group funded by anonymous donor/s) discovered Hadid's default and approached Romspen. By September 2020, Give Back paid Romspen an undisclosed amount to buy out Hadid's loan obligation to Romspen, and Give Back then became Hadid’s banker.

• Give Back was not as lenient to Hadid and gave him no further extensions or accommodations. This is because Give Back was keenly aware Hadid had pledged the land in Franklin Canyon as collateral for the loan.

• When Hadid failed to pay Give Back all amounts due under the loan (approximately $27 million at the time), as per the loan agreement, Give Back noticed default and sought to take Hadid's land in Franklin Canyon by way of foreclosure sale. The date for the foreclosure sale was promptly set for January 20, 2021.

• To stop the foreclosure, Hadid caused the two entities holding the land (Lydda and Coldwater) to file for Bankruptcy on January 15, 2021.

• Between January and December 2021, Hadid tried numerous stall tactics and maneuvers in the Bankruptcy Court to avoid losing the properties. As reported here previously, these maneuvers included telling the Bankruptcy Court that certain buyers were interested in the property, including a member of the Saudi Royal Family. Such "buyers,” however, never materialized. By the end of 2021, the US Trustee stepped in and ordered the property sold at auction to pay off the loan to Give Back which was then valued at over $34 million.

• On March 24, 2022, the auction was held and Castle Real Estate, LLC acquired the Hadid owned land "subject to" Give Back’s existing $34 million debt. Most of this history is laid out in the two documents attached below.

Summary: The fight to save Hastian Trail (and adjacent parcels in Franklin Canyon Park) from development is now over. The fight to rid Hadid from the Franklin Canyon Park hillsides at Cedarbrook, however, continues. All in all, this is very good day and one to celebrate.

A HUGE Thank-You goes to Ron Richards who led the charge against Hadid (and his army of lawyers) and of course, to “Give Back, LLC” (whoever you are)!

Steven L. Weinberg,
Founder, Hillsides Against Hadid.org

US Trustee’s Sale Motion

Give Back, LLC Timeline

Does Mr. Hadid claim an excuse for such brazen behavior? Of course!

As per the papers he filed on Friday, Mr. Hadid now blames Hillsides Against Hadid for apparently “outing” the identity of the Saudi Royal buyer on June 26, 2021 which he claims scared the Royal away and forced Hadid to refund the money. Nonsense.

We published only what Mr. Hadid himself publicly filed the day before in the Bankruptcy court (June 25, 2021). (See our posting about the Saudi Royal buyer HERE.)

Thus, if the buyer was really frightened for some reason (as a starting point, we have our doubts that there was an actual “buyer” at all), it was Hadid himself who scarred the Royal away. And arguably who wouldn’t be frightened entering into any business transaction with Hadid at this point, given his recent track record? Read Hadid’s latest court filing HERE.

In contrast to “Pacific Green” (and the Saudi Royal Family member owner) which claimed to also be interested earlier this year, Sahara seems to be a legitimate company that is represented by a legitimate lawyer. With the 11th hour LOI in hand, Hadid’s lawyers asked Judge Bluebond at the hearing on October 27th to extend all deadlines to allow a due diligence period of 60 days. Based on Give Back’s objection, Judge Bluebond rejected Hadid’s request but nevertheless gave Sahara until November 10, 2021. (UPDATE: at the November 10th hearing, Judge Bluebond gave Sahara an extension until November 30, 2021 at which time it will be required to deposit $3 million if it decides to proceed.)

Is Sahara just another stall tactic like Pacific Green? We have our suspicions. Only time will tell whether Sahara moves forward with the purchase of the six lots and that could shake out soon. Among other things, once Sahara discovers the legal and political quicksand surrounding the land, it may certainly have second thoughts about proceeding.

Apart from the looming zoning regulation changes which will curtail all of the planned construction (e.g., Ridgeline Protection Ordinance, Hillside Construction Regulation, etc.), as per our reading of the Court of Appeals’ decision in the Friends of Hastain Trail litigation, the LA Fire Department can exercise its easement rights over the Hastain Fire Road (all the way to the summit of Hastain Trail) the moment it decides the easement “necessary” for fire protection. In this wildfire fire prone area, that can happen in a heartbeat and arguably, no developer can stop it.

Legal Newswire POWERED BY LAW.COM

Despite what Mohamed Hadid and his attorneys would have the public believe, the embattled developer was not as victorious as is claimed in a press release issued by the attorneys who represented him in the highly-publicized matter.

Following a six-week jury trial at the Los Angeles Superior Court in Santa Monica over Mohamed Hadid’s illegally built mega-mansion in Bel Air, the jury found Mr. Hadid liable for creating a public and private nuisance and multi-millions in damages for Bird Marella’s clients. Bird Marella also secured the dismissal of Hadid’s specious counterclaim for attempted extortion. Plaintiffs Joseph and Beatriz Horacek and John and Judith Bedrosian, whose lives were turned upside down when the illegal structure was developed above their homes, filed the lawsuit in 2018. Bird Marella was retained by the Plaintiffs and succeeded in acquiring a demolition order for the property which was affirmed by the California Court of Appeal in March 2021. The property has been partially demolished and is in receivership, but cannot be acquired, transferred, or sold without fulfilling the full demolition order.

Consistent with Hadid's inability to acknowledge reality, and his propensity to manipulate the truth, the developer and his attorneys failed to highlight that he spent millions on this litigation after losing his self-proclaimed $40 million investment in the Bel Air monstrosity, and was properly disgraced by the jury’s verdict. By engaging in the illegal construction of the property at 901 Strada Vecchia Road, Mohamed Hadid showcased his character and true business acumen. Instead of taking responsibility, Hadid and his attorneys looked to deflect blame and villainize the Plaintiffs who are regarded as heroes for standing up to an unchecked and corrupt property developer.

Lead counsel Gary Lincenberg states, "The Horaceks and Bedrosians were heroes to stand up to Hadid, expose his criminal conduct, and the dangers of what he does in project after project. Despite spending millions of dollars to fight in court, a criminal court previously found him guilty of crimes. In the civil case, the judge forced the demolition of half of the illegal structure at Bird Marella’s urging, and now, as a result of this litigation, has entered an order to demolish the rest of it. Hadid's false counterclaim was dismissed, and a jury awarded millions of dollars in damages against him. If Hadid's lawyers want to call that a victory, then be my guest." Lincenberg adds, "Over the years, Hadid's fraud and wrongdoing have resulted in over $100 million in damages ordered against him. His disregard for the law, and his history of trying to run away from his obligations, is not exactly something that any decent human being would boast about."

Trial counsel Ariel Neuman told the Daily News, "I see this as a major victory for us. The jury found in favor of our clients, finding that the home is a public nuisance and a private nuisance, and awarded significant damages."

0872 Clarification Details NOT ISSUED

0872 Height Revision NOT ISSUED

(Caveat: we are not privy to direct communications between LADBS and Hadid’s camp so the publicly available information from the Los Angeles Department of Building & Safety may not be complete.)

Apart from the apparent absence of permits, our independent engineering review indicates that LADBS may soon even revoke permits because of the existence of illegal retaining walls, grading violations and excessive building envelope height at Cedarbrook. More on this later. Stay tuned.

”Because [the Saudi Royal Family Member is] so well known in the Kingdom of Saudi Arabia, if someone learns the name of [his]company, then they will, in turn known the name of the member of the Royal Family who is behind that company [using Pacific Green Vista, LLC as a shell]. I have reason to believe this . . . royal family member owner will pull out of the [sales agreement] if their identity is made known to the public. I believe and fear that this buyer’s public image might be tarnished and be subject to ridicule by Mr. Richards, Hillsides Against Hadid, and others . . . who will want to intimidate the buyer into withdrawing support for any development of the Property.”

Declaration of Mohamed Hadid

Playing the victim yet again, Hadid fails to mention:

(1) Hadid’s trail illegal conduct at Strada Vecchia and criminal convictions for intentional building code violations reported worldwide (and the torrent of civil litigation left behind in its wake);
(2) decades of public use of the land Hadid bought up while knowing about such use;
(3) renewed public opposition to careless mega-mansion developers like him;
(4) heightened public passions for protecting hillsides, ridgelines and open spaces in hillside neighborhoods stemming from his, and other’s prior bad acts;
(5) new zoning regulations covering Hadid’s properties now in process, including the Ridgeline Protection Ordinance and extension of the Hillside Construction Regulation (which will strictly curtail construction of perversely out-of-scale mansions like his);
(6) a historical “public easement” for hiking on the fire road winding through his properties (existing long before Hadid purchased them). See, e.g., Friends of Hastain Trail; and
(7) a breathtaking portfolio of unpaid judgments and liens which could eventually reach nearly $100 million.

But no . . . It was HAH’s truthful yard signs that ruined Mr. Hadid’s “reputation.”

Declaration of Mohamed Hadid

Hillsides Against Hadid’s Declaration in Response To Hadid

Hadid June 21, 2021 Retraction Demand

HAH June 25, 2021 Response

Excerpts of our response:

“Hi Jeff:

 Thank you for your letter.   [We] think you are mistaken.   [Hillsides Against Hadid] has never once stated that the public had a right of access to any of Mr. Hadid's properties.  Rather, [our] communications have only asserted facts that the public had access to Mr. Hadid's properties and that access would be ending by way of Mr. Hadid's development plans, including pending applications for building permits.   There is nothing false nor defamatory in those assertions.  As for statements made on various social media by third parties, we disagree they are defamatory but in any event, they are neither endorsed nor approved by [HAH] and you are welcome to pursue those individuals as you see fit.

 As for Mr. Hadid's reputation in the community, that has been self-made.  Mr. Hadid's folly at Strada Vecchia (including criminal convictions for building code violations) has been reported worldwide and is well known.  Thus, Mr. Hadid's reputation is not of [our] making or breaking. 

 The same holds true for Mr. Hadid's present business circumstances and apparent difficulty in attracting new partners for his grand ventures; those stem from a series of risky business maneuvers, public bankruptcies and a breathtaking portfolio of unpaid judgments and liens (including tax liens) in the tens of millions of dollars.  Given this background, [we] don't think anyone will be convinced that a couple of (truthful) yard signs had any effect on Mr. Hadid's eventual fate. 

 The stated goal of [this] grassroots organization (and all related social media) is to raise awareness of the circumstances and work with elected public officials to encourage meaningful changes in zoning regulations to better serve the public and to protect the environment.  [We] have never encouraged nor condoned lawlessness.   Notably, even in the cherry-picked screen captures you included in your letter, as soon as a visitor mentioned or encouraged trespass or vandalism of Mr. Hadid's private property, [we] specifically warned them:  "To be crystal clear, Hadid owns all of the land and can put up gates anytime he desires.  As much as we oppose this (and are working with officials to restore access) bypassing the gates is at your own risk."  

 Jeff, [we] have nothing against Mr. Hadid nor reasonable development in this community that preserves the natural beauty of the hillsides and ridgelines for generations to come and enjoy.  [Our] agenda is to use the democratic process to make meaningful change through legislation.  Having said that, in addition to already posting a copy of the Friends of Hastain Trail Court of Appeal decision for visitors of [our] social media to review and consider when deciding what to do for themselves, [we are] happy to discuss with you posting an additional statement further clarifying that the property is private property owned by Mr. Hadid and that while the public had access to hike and recreate upon it for decades prior to Mr. Hadid's ownership (and Mr. Hadid has allowed access since purchasing it), it has always been with the caveat that Mr. Hadid could end access anytime he desired.

 Please call [us] if you wish to discuss. Thank you very much.”

• The name and contact information for all “members, officers and managers” of Pacific Green Vista;

• A valid business address for Pacific Green Vista;

• Sufficient contact information for Pacific Green Vista’s “members, officers and managers” to enable Give Back LLC to conduct discovery;

• An explanation as to the source of the $1.5M deposit paid by Pacific Green Vista; and

• A description of “all connections between Mohamed Hadid on the one hand and buyer, its members, officers, managers and principals on the other.”

Judge Bluebond’s order is a clear signal the Court has grave concerns concerning the veracity of Hadid and his legal representation. This does not bode well for Hadid’s continued plan to use the bankruptcy court as a shield against a mountain of creditors, including Give Back.

Judge Bluebond’s Order is posted below.

• The address for Pacific Green is a random apartment building in Glendale;

• No one at the apartment building (including its manager) knows anything about “Pacific Green”;

• Pacific Green’s manager (Donal Griffith ) does not exist; and

• The attorney supposedly representing Pacific Green in the Sales Agreement denies representing Pacific Green.

You can read the complete court papers below.

Date: THURSDAY, JUNE 17, 2021

Time: 1:00 PM

Official City Notice: https://planning.lacity.org/dcpapi/meetings/document/69655

Dear Friends of Hillsides Against Hadid:  On Thursday, June 17, 2021 at 1:00 p.m. the Department of City Planning will be holding a public hearing on the proposed Ridgeline Ordinance.  In a nutshell, the Ridgeline Ordinance will create a new zoning overlay which will effectively eliminate any building within 50 feet of any targeted ridgeline in Los Angeles County.  In other words, approval of this important new zoning will stop builders like Hadid from bulldozing Franklin Canyon Park (and other similar open spaces) to build mega-mansions.  Please attend and let your voice be heard.

Place:  Zoom Webinar Link: https://planning-lacityorg.zoom.us/j/86287548994
Password: 494199

Participants may also dial by phone: (213) 338-8477 or (669) 900-9128
When prompted, enter the Meeting ID: 862 8754 8994

For more information, check our Resources Page.

Thank you!

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Among other things, we have been unable to verify the legitimacy of “Pacific Green Vista” or that any legitimate entity would pay $33 million for undeveloped property in Franklin Canyon Park that is now very publicly on LA City Council’s radar for new and VERY restrictive zoning. This zoning includes the pending Ridgeline Ordinance and extension of the Hillside Construction Regulation (“HCR”) zoning overlay. These initiatives would effectively gut any future development of the supposedly purchased properties.

Good luck convincing Judge Bluebond Hadid.

"Hi Steven, It was good speaking with you yesterday. As you know, our Office was recently made aware of what is taking place along Hastain Trail in Franklin Canyon Park. Closure of any right-of-way in public parkland will not be tolerated. We have reached out to the Mountains Recreation and Conservation Authority (MRCA), the public agency that manages Franklin Canyon Park, to follow up on this issue and see how we can best work together to address what is happening in Franklin Canyon Park. We are working to have the Los Angeles Department of Building and Safety (LADBS) Code Violation Unit to investigate potential unpermitted construction activity and code violations.

We will continue to partner with LADBS to enforce city regulations and take immediate action should unpermitted construction be occurring or if fencing is blocking off any public access outside of Mr. Hadid's property line.

Additionally, we are urging LA City Planning to quickly implement the amendments to the Hillside Construction Regulation for expansion of these regulations to Bowmont-Hazen, Coldwater Canyon, and Franklin Canyon, and for new developments planned by Mr. Hadid in these communities, who has repeatedly shown bad faith in complying with building permits issued by the City of Los Angeles.

Councilmember Raman supports strong ridgeline protections (for which LA City Planning is holding a public hearing on June 17 at 1 pm) and wildlife habitat protections (for which LA City Planning is hosting a public workshop on June 10 at 6 pm), and the Office recently shared its hillside priority agenda as part of the City's budget process.

Kind regards, Mashael Mashael Majid Planning Director councildistrict4.lacity.org"

We have met several times with representatives of Councilmember Nithya Raman's office to push a pending extension of the Hillside Construction Regulation ("HCR") through city council. As followers of this drama know, passage of the HCR extension would have hindered any further development inside Franklin Canyon Park and was a critical legislative initiative needed to save it from Hadid.

The legislation was spearheaded last year by former Councilman David Ryu but it has languished since Councilmember Nithya Raman took office. Even though we repeatedly warned her office this was coming, nothing has been done to move the ball forward since November 2020 and we see no excuse for Raman’s failure to follow through. Now is the time to let Councilmember Raman know your feelings. Below are important contacts for her office. You know what to do:

• Councilmember Nithya Raman official website: https://councildistrict4.lacity.org/

• Mashael Majid - CD4 Planning Director responsible for HCR initiative: mashael.majid@lacity.org

• Najeeba Syeed - Nithya Raman’s Chief of Staf: najeeba.syeed@lacity.org

• Meg Healy - CD4 Planning Manager: meg.healy@lacity.org

• Rachel Fox - CD4 Field manager - Franklin Coldwater: rachel.fox@lacity.org

• Nithya Raman - contactCD4@lacity.org

• (213) 473-7004