Church Regains Title to Building, Threatens to Show Scott the Door

The Church of the Open Door regained title to the disputed “Jesus Saves” church in downtown Los Angeles Thursday and promised to evict controversial television preacher Gene Scott “if necessary.”

The development--the latest round in the continuing battle over the fate of the Hope Street church--came the morning after Scott’s attorney predicted that the flamboyant evangelist “can have services in here as long as he wants” because the building’s fate remains enmeshed in a morass of legal trouble.

The next round is pending in City Hall, where the council is pondering a Scott-initiated proposal to declare the church, known for its rooftop, red-neon “Jesus Saves” sign, a city cultural-historical landmark. Such a move could prevent the building’s demolition, greatly devalue the property and damage the finances of the Church of the Open Door.

After a federal bankruptcy judge’s ruling Wednesday that Scott’s group had entered “a bad-faith bankruptcy,” ownership of the 72-year-old building reverted to the Glendora-based Church of the Open Door and Biola Hotel on Thursday morning when no bidders came forward in the foreclosure auction. Biola Hotel is a partner with the church on the property.

But there is no indication that Scott will give up the fight.

“I can tell you that Dr. Scott will be preaching there Sunday,” said Edward L. Masry, general counsel of Scott’s Wescott Christian Center.

“There’s a 30 year-lease on the property that is in place,” he said. “The tenant-in-possession is the Dr. Gene Scott Evangelistic Assn.”

Masry contends that the lease agreements initiated by Wescott to other Scott-affiliated entities are still valid. The assertion was disputed by the Church of Open Door.

Church of the Open Door officials said they were not surprised that the auction attracted no bidders. They said developers were probably discouraged from bidding because of the uncertain fate of lawsuits and political maneuvering initiated by the politically connected Scott, who has vowed to save the Italian Renaissance edifice from destruction.

The building’s future has been in doubt since Scott’s Wescott Christian Center defaulted on its $23-million contract to buy the property from the Church of the Open Door, which was relying on Scott’s payments to finance a new facility in Glendora.

U.S. Bankruptcy Judge Geraldine Mund on Wednesday declared Scott’s latest stratagem a “reprehensible” abuse of the legal process. She rejected the church’s attempt, taken just last week, to deed the property to a for-profit corporation headed by Masry. The corporation immediately filed for protection under federal bankruptcy laws.

In addition to the Bankruptcy Court decision, Wescott also lost a bid in Superior Court Wednesday to recoup its $6.5-million down payment on the downtown property. Wescott has indicated that it will file an amended suit.

Masry said Scott will press his effort to have the building declared a historical monument by the City Council. He has enlisted downtown City Councilman Gilbert Lindsay as an ally in his effort.

The City Council will consider today whether to give final approval to a measure prohibiting the issuance of any demolition permits against the property. The proposal won preliminary approval last week after heated debate.

Lindsay appeared at that time to have the eight votes necessary to designate the church as a historical monument. The proposal, however, was delayed after the city attorney advised the council to await resolution of the bankruptcy proceedings.

Dissenting from the majority, Councilmen Marvin Braude objected to “this rush to action.” He called the effort “a conspiracy to help one private interest over the other.”

In addition to Lindsay, Scott also has political ties with Mayor Tom Bradley. A Scott company, Dolores Press, loaned an airplane to Bradley during last year’s gubernatorial campaign. Scott also featured Bradley prominently in full-page newspaper ads celebrating the Hope Street church.

Bradley aide Ali Webb said the mayor will wait for the council to complete its action before taking a stand on whether the church should receive a historical designation.

Two years ago, the City Council supported plans to raze the building to allow development of high-rise office towers. Under the plan, $22 million was to be raised for expansion of the Central Library. At the time, there was no campaign to preserve the building as a monument, but the plan fell through.

Church of the Open Door is “very grateful” to have title back, Associate Pastor Dale Wolery said Thursday.

The opening bid sought in Thursday’s auction was $17,610,838.98--the amount that Scott still owed on the property. With no bidders, the property automatically returned to the Church of the Open Door without any money changing hands.

The Church of the Open Door will try to persuade the City Council to return to its past support for demolition of the property, attempt to clear away litigation and, Wolery said, “if necessary, we will evict Wescott Christian Center.”

Joel Klevens, attorney for the Church of the Open Door, said he believes that Scott’s ultimate goal is to “devalue the property sufficiently . . . so that they (Wescott Christian Center) will still be the only buyer.”