Panel Delays Equestrian Center Review

The Los Angeles Recreation and Park Commission refused Thursday to consider a proposal for construction of a 300-room hotel and health center at the Los Angeles Equestrian Center in Griffith Park until a subcommittee evaluates the plan.

The panel would not allow J. Albert Garcia, president of the debt-plagued center, to give details of the proposal, even though Garcia had been scheduled to make a formal presentation before them.

Garcia told the commission he needs its endorsement so he can attract more investors to keep the center financially afloat. Garcia said that, without the panel’s approval, private shareholders who have been absorbing the center’s $100,000-a-month losses might discontinue their support.

Garcia said he needs about $2 million in working capital to keep the center going during and after construction of the complex, which is expected to bring in more income.

Investors’ Commitments

He said he has commitments from investors who would provide the $2 million if the city endorses construction of the hotel and health center.

But Commissioner J. Stanley Sanders said the panel needed an “assurance that we aren’t being back-doored, whiplashed and whipsawed into making a deal on what these improvements purport to be.” He complained that the commission has insufficient information to approve a project of such size. Sanders also expressed doubts about the ability of Garcia’s staff to manage expansion of the center, which has lost money for the four years it has existed.

Commission President William Robertson said he wanted the Recreation and Parks Department staff, as well as a city government subcommittee that oversees the lease with the Equestrian Center, to study Garcia’s proposal before it is presented formally to the commission. He also asked for an environmental impact report and comments from the public.

Several Burbank residents also voiced opposition to the expansion. Burbank City Atty. Doug Holland asked the commission, “Are you thinking of building an equestrian center for Los Angeles or the western United States? If it’s for Los Angeles, then you don’t need a hotel.”

Radio talk show host Michael Jackson, who rides at the center, gave an emotional speech urging the city to support the expansion. He said that, if Burbank residents who live nearby, and who complain about noise and traffic, do not appreciate the center, then “screw the people of Burbank.”

Filed Bankruptcy

The center is $17 million in debt and has filed for protection under federal Chapter 11 bankruptcy laws. The commission last month, at Garcia’s request, agreed to temporarily lower the rent Garcia pays the city. Robertson said that “bail-out action” demonstrated the city’s desire to see the center become successful.

The financial woes of the center are expected to decrease somewhat next year, when construction is completed on retail stores, a restaurant, practice rings and stalls for 300 polo ponies. A legal battle between Garcia and the center’s chief lender, Gibraltar Savings of Beverly Hills, prevented the facility from being completed when Gibraltar withheld $2 million in funds.

However, a city-commissioned study released last month recommended that the city not approve the proposed hotel, which could cost $20 million to $40 million, until the facility proves itself.