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Valley Relics Museum Collects and Showcases San Fernando Valley History

By
Hannah Madans Welk
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The Valley Relics Museum in Van Nuys. (Photo by David Sprague)

Nostalgia fueled the beginning of the Valley Relics Museum in Van Nuys.

Founder Tommy Gelinas said he was disappointed at the rate in which classic San Fernando Valley landmarks were disappearing in his adulthood. So the Valley native started tracking down keepsakes and relics, which he eventually started showcasing on social media blogs.

As popularity grew, his fans started helping him load up on more totems.

“A lot of people just jumped on the bandwagon,” Gelinas said. “They’ll call me and say, ‘Can you save this?’ or ‘There’s this estate sale and this guy was big in aerospace.’ It’s been really embraced and supported by the community.”

These artifacts come in the way of classic neon signs, such as the one that previously adorned the famous music venue, the Palomino Club in North Hollywood. As a former manufacturing hub in the aerospace and defense sectors, there’s also a lot of memorabilia and swag from defense contractors.

Film of course has a huge history in the region. The seminal film “E.T. the Extra-Terrestrial” was filmed throughout Northridge, Tujunga and Porter Ranch. Filmmaker Paul Thomas Anderson frequently sets his movies in the Valley, where he grew up.

“People who come here say, ‘Oh I remember all of this.’ It’s definitely Southern California pop culture, but what I find interesting is when people come from New York or Australia, they say they know the Valley well from all of the movies,” Gelinas said. “I call the Valley the world’s most famous valley. We produced the very first Camaro, out of Van Nuys. Lockheed made most of the warplanes that defended this country. You had some of the best boutique guitar makers. You’ve had so many movies made here. You had so many celebrities live here.”

Entering the events space

When Valley Relics moved from Chatsworth to the Van Nuys Airport in 2018, the space was not just bigger. It would also prove to be a lifesaver after the Covid-19 pandemic took hold.

The more central location and stronger pull of displaying more items – which also included flashy classic cars and lowriders as well as BMX bikes – meant the museum could build up reserve funds. That allowed Gelinas to pay the year’s rent up front in 2020. And the ability to open enough of the structure to make it open air meant the museum had more freedom to operate while pandemic restrictions were still in place.

“Ever since Covid, I haven’t ever been busier with events,” Gelinas said. “It started with all of our money being depleted, but it kick-started us becoming a really popular destination and event space.”

In particular, the museum has played host to many bar and bat mitzvahs in the past few years, with the traditional venues for the event overbooked on account of the closure-induced backlogs. Gelinas said he also frequently hosts birthday parties and photo shoots at the location.

Tutor Perini Nabs $74 Million Contract

By
Zane Hill
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Vehicle: A Tutor Perini truck.

Sylmar-based construction contractor Tutor Perini Corp. and one of its subsidiaries have been awarded a $74 million contract to build a child development center at Anderson Air Force Base in the United States Pacific territory of Guam.

The contract was awarded by the U.S. Naval Facilities Engineering Systems Command, Pacific District, to a joint venture of Tutor Perini and its subsidiary, Black Construction Corp. Tutor Perini acquired Black Construction in 1995.

Work is expected to begin this summer with substantial completion anticipated in the summer of 2026. Tutor Perini said the contract value will be included in the company’s backlog beginning in the second quarter of 2024.

“We are pleased to continue supporting the U.S. Navy on its mission critical infrastructure projects in Guam and throughout the Indo-Pacific region,” said Leonard Kaae, senior vice president and general manager of Black Construction.

The project calls for the construction of a one-story reinforced concrete building, space for vehicle parking, a storage facility and outdoor activity spaces. The interior of the building will contain child development spaces, as well as administrative, staff and other support spaces. The square footage of the building was not released.

Sitework will include grading, landscaping, walkways, fencing, equipment enclosures, sewer, water, electrical and telecommunication utilities. Work will also include environmental mitigation to maintain cultural and natural resources as well as removal of munitions and other explosives of concern.

This is the second contract announcement in recent months involving Black Construction. The other was a trio of contracts announced in April worth a combined $54.5 million for work on the United States naval support facility on the island of Diego Garcia in the Indian Ocean.

The biggest of these three projects, at $43.5 million, is for repair of a parking apron and taxiways at the naval support facility’s airfield. The other two projects consist of repair work for an incinerator and a road.

Energy Vault Inks Battery Storage Deal

By
Hannah Madans Welk
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Storage: Energy Vault system in Stanton.

Westlake Village-based energy storage company Energy Vault Holdings, Inc., has announced it anticipates closing agreements with ACEN Australia to provide two battery storage systems with a combined capacity of 200 megawatts as part of solar energy generation project in the Australian province of New South Wales.

ACEN Australia is a subsidiary of ACEN, a renewable energy company headquartered in Makati in the Philippines.

Energy Vault, which has headquarters both in Westlake Village and Lugano in Switzerland, is building a portfolio of energy storage projects involving several technologies, including battery, gravity-based and hydrogen systems. The company has several gravity storage projects under way in China, with one recently completed. It also has both a battery storage project and a hydrogen project in California and another battery storage project in Nevada.

Under the deal with ACEN Australia that is expected to formally close by the end of this month, Energy Vault will deploy one battery-based system capable of storing 150 megawatts of energy and another one for storing up to 50 megawatts. The pair of battery storage facilities will be part of ACEN Australia’s 720-megawatt New England Solar project planned for a location near Uralla, a town about 250 miles north of Sydney and 100 miles inland in New South Wales.

According to the announcement, construction on both battery system deployments is expected to begin later this year, with both coming online by 2026.

Health Care Roundtable 2024

By
Kelly Garcia
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Click here for PDF of supplement

The health care industry as a whole has faced an incredible array of challenges over the last few years and has rallied by making improvements, enhancements and adjustments to protocols, all while providing services that are the most essential to those in need. To explore the future of health-related issues, our Inside the Valley team has discussed insights, suggestions and best practices with health care experts and thought leaders from the region.

My Biggest Mistake: David Honda

By
James Brock
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David Honda missed out on Red Bull. (Photo by David Sprague)

David Honda leads Northridge-based D.S. Honda Construction, a company he founded in 1980. He has also served as chair of the California State University – Northridge Foundation. During the course of his career, however, Honda has made some mistakes. Here he discusses a few. The lesson he says he has learned? “I was mistaken in a rush to judgment. I was young and impatient. I now go down the rabbit hole for every opportunity.”

Puerto Rico hotel project

In circa 1981, I was offered a project in Puerto Rico. This project was to design and remodel an abandoned hotel. The owners (were looking) to create medical facilities for cosmetic surgery by Beverly Hills physicians and recovery rooms in a hotel setting. The hotel would accompany a casino. The owners felt offshore cosmetic surgery was attainable based on their name. Gucci – yes, (the) Rodeo Drive shoe, guys – Aldo and Paolo Gucci were the owners. 

The project didn’t proceed due to their inability to obtain a gaming license. My job was in development, architecture and construction – the owners’ responsibility was licensing and finance. I spent one year traveling back and forth to the island, interacting with the government.

Bottled water development

The next project was developing a bottled water company.
After the above project didn’t proceed, Paolo Gucci contacted me to build a water bottling plant, near Truckee, California. I stated that Perrier Water was the only bottled water company at the time. Paolo Gucci felt that their name would sell water. I pointed out that there is free water, and I don’t think restaurants will pay for water. Also, Paolo disagreed on how the partnership would be divided between his brother.

I didn’t want to continue since I lost money on the Puerto Rico project and sensed a growing issue between the family. I declined their offer. Soon after, Evian arrived in the market, and now Coca- Cola and everyone else are in the marketplace. I now think Gucci Water would have done well.

Missing out on Red Bull

Circa 1990 I was approached by an emerging energy-drink company. Their desire was for me to distribute their product throughout Japan and Asia. They brought samples of their product for my tasting. I didn’t like the taste and I asked how much (the cans would retail for). When she (the company representative) stated $2 per can, I commented that Coca-Cola and Budweiser were much cheaper than their product and I didn’t understand the energy drink concept. I passed. The product was Red Bull. — Hannah Welk

Lee & Associates Stays Hyperlocal

By
James Brock
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From left, Mike Tingus, John Battle, Scott Caswell and Darren Casamassima.

Lee & Associates – Los Angeles North/Ventura Inc., a brokerage firm specializing in the sale of mom-and-pop industrial assets based in Westlake Village, also has offices in Sherman Oaks and Oxnard. Word on the street is that it may be expanding further, with plans to open a fourth office in the Valley.

“We’re currently interested in opening an office in Santa Clarita,” says Mike Tingus, president of Lee & Associates Los Angeles – North/Ventura. 

The firm has grown quite a bit since Tingus took over presidential operations in 2004, having recruited 26 new brokers in his first year alone. Today, the company is at 65 brokers and transacted a total of $703 million last year.

Tingus says there are approximately 24 brokers in the Sherman Oaks office, 32 in Westlake Village and 10 in Oxnard. Although still relatively small, Tingus says he prefers having multiple, smaller branches as opposed to one larger one. 

“When everyone was regionalizing their offices, we didn’t do that,” Tingus says. “We decentralized our offices.”

For him, smaller home bases on a wider footprint allow for more localized expertise and provide more convenience for the company’s brokers.

“Living in your local community is important,” Tingus says. “A big part of it is just understanding the market that you are working in and being intimate in that market and knowing pretty much everything that’s going on.”

Broker-owned business

According to Tingus, one of the primary drivers behind its expansion may be rooted in the company’s unique model. Unlike other brokerages that operate traditionally, Lee & Associates is a company of companies.

The Lee & Associates branding encompasses 76 companies in North America, 27 of which are in California – Lee & Associates – Los Angeles North/Ventura being one of them. Each company operates independently, with its own president and executive board, and gives its brokers the opportunity to become a principal and shareholder in its local office.

“That principal/shareholder standing allows them to not only share in the profits of their local office, but it allows them to have a say in the direction of the company on a national basis,” according to the company’s website. “The difference at Lee & Associates is that our shareholders are our revenue producers, and it is our goal to return those profits in reward for their outstanding client services.”

In the case of the Los Angeles North/Ventura office, the company has 31 shareholders, all active brokers, including Tingus himself. According to Tingus, the benefits of this model include having a more localized approach to doing business and allowing the company to stand out among its larger competitors.

“When you’re working for an entity that is not your own company, you don’t necessarily have a vested interest in their success,” he adds. “Our company is a little bit different in that if a broker was to join our company, if that broker makes money, my partners and I might make money because they are doing a good job. If that broker loses money, my partners and I lose money.”

Tingus says this model has pushed the firm forward because the job security is attractive to brokers, and the financial stakes are higher. 

— BRYNN SHAFFER

Founding Funders: Westlake Village Biopartners

By
James Brock
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Westlake Village BioPartners’ Mira Chaurushiya, left, Beth Seidenberg and David Allison. (Photos by Rich Schmitt)

Regional economic development has long depended on large anchor companies. Hollywood studios built lots defining Burbank’s infrastructure and dotted the hills with its stars’ homes; Douglas Aircraft Co.’s flagship plant buoyed Long Beach’s economy during and after World War II.

In the Valley, a venture capital firm with the potential to define the biotech industry has emerged from the foundation set by legacy pharma players like Amgen and Abbvie.

Westlake Village BioPartners brought money to a biotech capital drought in 2018, debuting with a $320 million fund to stake a claim in a region overflowing with lab real estate and qualified drug developers in need of funding.

“That was a large enough amount to matter,” says Beth Seidenberg, Westlake Village’s co-founder and managing director. “People started to pay attention and then others have followed.”

The venture firm catalyzed the latest class of companies and entrepreneurs for the space. Fast forward to today, and Westlake now accounts for over $1.3 billion in capital under management, overseeing two drug developments trading on the Nasdaq and has cashed in on one acquisition.

Beth Seidenberg

In the past year alone, Westlake Village oversubscribed its third fund to bring in $450 million in capital commitments and announced millions in equity funding to five companies.

As the battle for regional talent grows more competitive amid a new class of institutional investors, Westlake Village says its plans for the next five years follow its founding blueprint. According to David Allison, a managing director at Westlake, the firm isn’t aiming for more venture capital market share.

“Our goal is never to be a multibillion-dollar fund, creating twice as many companies and pumping companies off of the conveyor belt,” Allison says. “The core strategy will be what it is.”

How we got here

The 101 Corridor’s rise as a life science hub didn’t happen overnight. It took the right investors incubating the right founders.

Seidenberg and co-founder Sean Harper etched their names as some of the most influential figures in medical development far before their venture days. Both rose through the ranks at New Jersey-based pharmaceutical manufacturer Merck early in their careers and later spearheaded departments at Thousand Oaks-based Amgen. 

Seidenberg joined the biotech venture capital world as a general partner at Menlo Park venture giant Kleiner Perkins in 2005. She still works for Perkins while helming Westlake.

Seidenberg entered Perkins as its computing portfolio evolved amid a biotech boom. She noticed how money poured into young tech companies can have a compounding effect on a region and recognized a chance for biotech to make its own name in L.A.

David Allison

“There was a series of very prolific and good tech companies that formed,” Seidenberg says. “I saw it happen there, and I said, why not make that happen for biotech?”

A stacked roster of well-resourced labs and medical schools at CalTech, UCLA and USC were ripe for business sponsorship. 

There were earlier waves of entrepreneurs pulled from these institutions. Amgen let go of 2,600 workers in 2007, including some leaders and drug developers who went on to establish successful operations in the region.

Potential founders didn’t have a local life-science venture firm to pitch, until 2018, when Westlake Village BioPartners entered the scene. Seidenberg and Harper could connect with experts in their Amgen network who knew a thing or two about drug development.

“The talent is here, whether it’s at Amgen or AbbVie,” Seidenberg says. “The missing element was there was no concentration of institutional capital in an organized fashion – a venture capital firm at scale.” 

Westlake Village’s $450 million fund raised last year drew a large class of returning investors from its debut. 

Large university endowments, pension funds and hospital systems all bought into its vision for having a homegrown venture firm replete with exclusive biotech expertise.

With this institutional money legitimacy, other venture players have entered the local biotech and pharma scene. 

Foresite Capital, a life sciences investment firm led by investor Jim Tananbaum, opened a West Hollywood office a few years back. Vida Ventures, a Boston-based life sciences investment firm with more than $1.8 billion in assets under management, expanded its team out here during the Covid-19 pandemic. 

“The innovation ecosystem in the L.A. region is really ripe for translation,” says Allison.

Westlake’s incubation model

Today, 80% of Westlake’s portfolio companies are based in California, and 40% are based in the greater Los Angeles region. Mira Chaurushiya, a managing director at Westlake, says the firm’s team spends only two days a week in its offices. Its staff is mostly out in the field, meeting founders, spending time in labs and gauging whether a portfolio company is ready to emerge from stealth and take on the rigors of clinical testing. 

One company its invested in is Latigo, which in late February publicly debuted with a $135 million series A round to fund its development of non-opioid pain treatments. Westlake incubated Latigo about four years ago. At the time the company’s bet on cell therapy as pain treatment was considered contrarian. Now, cell and gene editing have been validated by successful trials.

“Those treatments have shown how much farther there is to go,” Chaurushiya says. “We’ve been able to narrow in on investments and say, OK, how do we take what we’ve learned from that first inch of success and really figure out how to solve for the limitations?”

The gap between Latigo’s debut and Westlake’s initial investment displays the firm’s incubation method. Through networking and research, Westlake identifies therapies or molecules larger biopharmaceutical companies may have put on the back burner or deemed too risky.

Mira Chaurushiya

Its model faced the ultimate stress test last year when its portfolio company Acelyrin went public in May amid an IPO drought. Its $540 million fundraise beat analysts’ expectations and remained the largest IPO for the biotech industry in 2023.

After its grand entrance on the public markets, however, Acelyrin’s stock tumbled after a late-stage psoriatic arthritis trial was reportedly botched by an outsourced research organization.

Seidenberg remains on Acelyrin’s board, and subsequent trial stages have shown a recovery in investor confidence.

According to Allison, Westlake sees promising signs on the public markets, which still serve as a cost-reducer for hefty capital needed to sustain often expensive and elongated clinical trial process.

“Investors are coming back in to fund public biotech companies,” Allison says. “A lot of these are specialist investors, but we’re starting to see some generalists come back in as well. We see these as signs of a healthy ecosystem.”

Westlake keeps its incubated cards close to the chest, but says it plans to invest in between 10 and 12 companies from its latest fundraise. Despite the slow merger and acquisition market and high interest rates, the firm maintains around a three-year horizon for this deployment. 

Buzzworthy: Toll Brothers Closes on 60 Lots

By
James Brock
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Toll Brothers purchased 60 single-family lots on which to build.

Toll Brothers Inc. has purchased 60 single-family lots within the Tesoro Highlands master-planned community in Valencia. IHP Capital Partners was the seller. The completed transaction marks the first of a three-phase sale for a total of 137 lots within Tesoro Highlands.

“The closing of Toll Brothers’ first finished lots is an exciting milestone in the development of Tesoro Highlands, a beautiful new community in the scenic hills of Santa Clarita,” Chris Bley, co-president and chief investment officer at IHP Capital Partners, said.

According to Bley, IHP first began delivering lots within the Tesoro Highlands masterplan in the first quarter of last year and has delivered 348 finished lots as of March.

“We are pleased to welcome another quality homebuilder to the community that will bring the vision for Tesoro Highlands to life and provide an exceptional living experience for its residence,” he said.

Developed by IHP affiliate, Newport Pacific Land Co., Tesoro Highlands is a more than 1,270-acre hillside community entitled for 820 homes and more than 800 acres of preserved open space.

The mostly gated community will offer four distinct neighborhoods for families and single residents aged 55 and up. IHP previously delivered 288 single-family lots within Tesoro Highlands to Lennar Homes of California, which is actively selling homes within the masterplan.

Toll Brothers is offering two collections of single-story and two-story homes to prospective buyers at Tesoro Highlands, many of which feature landscape views. 

Homes in the Bella Terra collection will range from 3,400 square feet to over 3,700 square feet and include four to six bedrooms. The Alta Monte collection is a bit bigger. Homes will range from 4,700 square feet to more than 5,100 square feet and include four to six bedrooms.

Toll Brothers started selling in January of this year. Model homes are under construction and are anticipated to open in the summer. — Brynn Shaffer

Engineering Firm Gets New Owner

Coffman Engineers Inc. finalized the acquisition of Donald F. Dickerson & Associates Inc., another engineering services company, in April.

Terms of the deal between Dickerson, in Tarzana, and Seattle-based Coffman were not disclosed.

The strategic partnership brings together the experience of both firms, with Coffman welcoming three Dickerson owners and 18 staff members.

April Trafton, president and co-owner of the San Fernando Valley-based Dickerson, said that her father, who founded the company in 1961, would have been excited to become part of the Coffman team and continue the company’s legacy.

“This new chapter allows us to continue serving clients how we have, and we will have access to additional resources and services at Coffman,” Trafton said.

Dickerson and Coffman share similar project experience across many markets, and the Valley firm adds significant experience in high rise, multifamily, and mixed-use projects. 

Leadership and staff from both firms have existing relationships, which provides a foundation for a transition of projects, clients, and employees, the companies say in a release.

Dickerson has a long history in Los Angeles and throughout California, said Jonathan Wirthlin, vice president and managing principal of Los Angeles for Coffman.

“It is an honor to join with their engineers and designers and gain the experience they bring,” Wirthlin said. “Both of our firms share a commitment to high quality services and a friendly work culture, and we’ve already proven that this will be an amazing team.”

Among the projects that Dickerson has worked on are the renovations to the south wing of Los Angeles City Hall; mechanical, electrical and plumbing design work for the Bradbury building in downtown; and replacement of existing plumbing for the 3-story Wrigley Casino building on Catalina Island.

Coffman has contributed to such projects as the food hall tenant improvements at the Westfield Topanga shopping mall; building and fire code consulting for the design-build project of the Noyes Laboratory on the Caltech campus; and the Cedars-Sinai Medical Center lower level pharmacy expansion and remodel project.

— Mark R. Madler

UCLA Acquires West Hills Hospital

UCLA Health has acquired the 260-bed West Hills Hospital and Medical Center and related assets from HCA Healthcare and renamed the hospital UCLA West Valley Medical Center.

Financial terms of the transaction, which was finalized on March 28, were not disclosed.

The acquisition will help address the community hospital’s inpatient capacity needs, allowing UCLA Health to provide care to more patients across the region. It joins four other UCLA Health hospitals: the Ronald Reagan Medical Center, the Mattel Children’s Hospital and the Stewart and Lynda Resnick Neuropsychiatric Hospital all on the Westwood campus and UCLA Santa Monica Medical Center.

“This acquisition represents a strategic investment in our community and our mission,” Johnese Spisso, president of UCLA Health and chief executive of the UCLA Hospital System, said in the announcement. 

“It will both increase convenience for patients living and working in the San Fernando Valley and provide critically needed inpatient hospital capacity in the UCLA Health system to serve more patients who require highly specialized care and treatments,” Spisso added.

Besides the 260 beds, the hospital facility includes seven operating rooms and a free-standing ambulatory surgery center.

Under HCA Healthcare’s control, the facility recently underwent an $80-million expansion that added a new emergency department, intensive care unit, cardiac catheterization laboratory as well as the Grossman Burn Center. 

UCLA Health said in its acquisition announcement that it will develop a long-term strategic plan to upgrade the remaining facilities at the hospital.

According to the hospital’s website, it has a medical staff of about 450 and a total of about 900 employees. 

“We are pleased to welcome West Hills staff members as UCLA Health employees as we work together to serve the community,” Spisso said.

— Howard Fine

Estrella Sells Its Assets

Estrella Media Co., a Spanish-language media company, has sold its assets to MediaCo Holding Inc. Estrella Media, which is based in Burbank, sold its content, digital and commercial operations to MediaCo., including its Estrella TV network and its digital video content business.

The deal closed mid-April and allows Estrella Media to retain its name. The transaction provided Estrella Media with a warrant for 28.2 million shares of MediaCo’s Class A stock, $60 million in series B preferred stock, a $30 million second lien term note and about $30 million in cash. Estrella Media Chief Executive Peter Markham said that the acquisition will help MediaCo to become the “preeminent media company” and serve its multicultural audiences.

“This is a natural next step in the evolution of Estrella Media’s content operations to better serve our important U.S. Hispanic audience,” Markham said.

Estrella Media will maintain ownership of its local TV and radio stations. New York-based MediaCo will provide programming for those stations and has the option to acquire those stations at a later date in exchange for 7 million additional shares of MediaCo Class A stock.

Estrella Media board member Jacqueline Hernández will step in as the interim chief executive of the combined company. Markham will remain at the helm of Estrella Media managing the operations for its stations. According to a company spokesperson, Estrella currently has 13 owned and operated TV stations, and 42 affiliate TV stations. The company also has eight radio stations, as well as its “Don Cheto Radio Network” that is in 32 markets.

“This combination of tested media brands and talented teams will fuel growth of content and distribution for the benefit of our multicultural audiences,” Hernández said in a statement. “We believe this combination is the first step in building a unique multicultural media company that will reach diverse U.S. audiences wherever they choose to consume content and create value for marketers working to reach these important audiences.”

An Estrella Media spokesperson said the two companies are currently in the process of transitioning their teams and identifying any staff redundancies.

Estrella Media was originally founded in 1987 as Liberman Broadcasting Inc. The company, later known as LBI Media, filed for Chapter 11 bankruptcy protection in 2018. It then rebranded as Estrella Media, with Markham stepping in as chief executive in 2019.

MediaCo and Estrella Media said in a joint statement that the combined footprint of their companies positions it as “one of the strongest radio content providers for Spanish and Urban music,” with audiences that represent almost one-third of the U.S. population.

“This leverages the strengths of two great companies to build something new,” MediaCo Chair Deb McDermott said. “We are committed to representing and serving the Hispanic marketplace, as well as continuing to represent and grow the diverse audience that MediaCo already serves.”

 — Grace Harmon

A Sporting Debate Over Studio City Project

By
James Brock
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Scott Hayner, head of West Coast development at Midwood Investment & Development. (Photos by Rich Schmitt)

A project that recently received approval is expected to bring major changes to Studio City, and not everyone’s on board.

The Los Angeles City Council recently voted 13-1 in support of The Residences at Sportsmen’s Lodge. The privately funded redevelopment project led by New York-based Midwood Investment & Development will reportedly cost $500 million and bring 520 units of new housing to the area, 78 of which will be affordable, plus approximately 45,000 square feet of retail and restaurant space along Ventura Boulevard.

It will rise adjacent to the Shops at Sportsmen’s Lodge – a 95,000-square-foot property, fully leased to tenants including Equinox, Erewhon, Sugarfish, Reformation and Vuori – another Midwood redevelopment project, which opened in December 2021.

The Residences at Sportsmen’s Lodge will require the demolition of the existing hotel and is intended to build off the success of the already repositioned shops.

“In general, the Studio City community, which is one of the highest resource areas in the city, has had very limited housing inventory and housing growth over recent history,” Scott Hayner, head of West Coast development at Midwood, says. “So, the additional 520 total units I think is very important to help build out the housing inventory and housing shortage in Studio City.”

In addition to new housing and retail offerings, the mid-century modern makeover, designed by Marmol Radziner in collaboration with Olin Studio, will feature a new direct connection between Ventura Boulevard and the Los Angeles Riverwalk pedestrian and cyclist path, as well as add more than 1,380 below-grade parking spaces.

“We’ve been a longstanding stakeholder in the Sportsmen’s Lodge site for 60-plus years,” Hayner says. “There’s a lot of history here. We feel very strongly about Studio City and are fully committed to the community. We are looking forward to bringing a new vibrant destination to Studio City with activated public spaces, top retailers, additional housing options, including affordable housing, and a direct connection to the Los Angeles River Walk path. The location itself is also on two major corridors, Coldwater Canyon and Ventura (Boulevard), which provides easy accessibility for the community.”

Activating Ventura Boulevard

The Residences at Sportsmen’s Lodge will be composed of three buildings, each ranging from three to seven stories, all featuring ground-floor retail.

Of the 520 units offered, 78 will be reserved very low-income affordable, with the remaining units priced market rate. Floorplans will reportedly range from studios up to two-bedrooms. 

“I think we all know that Los Angeles is facing a housing crisis, and a homeless crisis as well,” Sonnet Hui, general manager and vice president at Project Management Advisors Inc., says. “I think the only way to be able to address it is by providing more housing.”

Hui adds that, in Los Angeles, there’s a supply-and-demand imbalance when it comes to housing – categorized by a high demand but lack of supply, which in return drives up rental and housing costs and only exacerbates the county’s crisis.

In her opinion, mixed-income, mixed-use development projects like these are key in combatting that supply shortage and bridging the housing gap, in which people of varying income levels can coexist.

“I think that it is a much healthier society when people from mixed incomes can live side by side,” Hui says. “I think there’s a mutually beneficial symbiotic relationship that can be very helpful.”

‘Not in my backyard’

But despite Midwood’s intentions, many community members are displeased with the company’s decision to convert the 1960s hotel site, which is said to have been a gathering place for Hollywood stars including Clark Gable, Bette David, John Wayne and Katherine Hepburn.

Multiple Valley-based organizations have stepped forward to oppose the demolition of the Sportsmen’s Lodge, including the Studio City Residents Association and Unite Here Local 11, a union that represents hospitality workers.

“Our union strongly believes that the Sportsmen’s Lodge is a historic hotel that should be preserved,” Kurt Peterson, co-president of Unite Here Local 11, says. “As SurveyLA stated in 2013, the Lodge mirrored the Valley’s growth, served as a roadside attraction to the Valley’s vibrant automobile culture, and as one of the Valley’s earliest fine dining locations. It also represents the Valley’s important connection to the entertainment industry. We continue to believe that with the demolition of the Event Center, the historic hotel is an important remaining link to that history, and therefore should be preserved.”

Others opposed include neighbors who fear that the redevelopment will bring unwanted heights to their once-suburban community. Specifically, the affordable housing component of the project permits Midwood to push the scale of the development, allowing relief from zoning rules through density-bonus incentives.

A rendering of the Sportsmen’s Lodge redevelopment plan.

“I think what’s been really interesting to see (is that) the city of Los Angeles and the state have implemented a lot of incentives that actually incentivize private developers to provide affordable housing and create truly mixed-income, mixed-use developments that are built on their dime, and not the city or state’s dime,” Hui says. “I think it’s actually a pretty creative way of trying to address a really severe problem.”

The new building will stand 94 feet high, taller than any other building in the area, and construction will involve excavating 430,000 cubic yards of dirt. According to Urbanize, the project may be the biggest seen in Studio City in recent memory; the Ventura-Cahuenga Boulevard Corridor Specific Plan has seen no residential construction since its inception more than 30 years ago.

Will It Bring Positive Change?

Other Valley groups believe the redevelopment will bring positive change to Studio City’s landscape, including the Valley Industry Commerce Association and the Valley Economic Alliance, both of which shared their strong support for the project prior to the April 4 city council hearing.

“Midwood has been an integral part of the Studio City fabric since the 1960s,” Stuart Waldman, president of VICA, said in a statement. “Their commitment to invest hundreds of millions of dollars into this project without seeking public funds for its affordable-housing component is not only commendable but a testament to their dedication to our community’s growth and well-being.”

Walking to your favorite shop or restaurant isn’t just convenient; it’s a lifestyle choice that the Residences at Sportsmen’s Lodge is set to encourage. By improving pedestrian access and connectivity, this project will significantly reduce congestion along Ventura Blvd., making our community safer, cleaner and more enjoyable for all,” Waldman adds. “This project represents a step forward in our collective vision for a more vibrant, inclusive and dynamic Studio City.”

Hayner says that while Midwood considered adaptive reuse, new construction was ultimately necessary to accommodate parking and maximize the site’s potential.

“It’s been a long timeframe to get approved,” Hayner says. “At this point, we are fully approved by the city council, which is a great step forward with the design and permitting to make this a reality.”

Midwood purchased the land from private developer Richard Weintraub in 2017. In 2019, the event center was demolished to make way for The Shops, which opened in 2021. While the Sportsmen’s Lodge remains today, the hotel itself has been nonoperational since 2020. Demolition of the hotel and construction of the Residences is scheduled to begin next year.

Businesses Are Busily Adopting AI

By
James Brock
-

The various ways that companies are  applying artificial intelligence is expanding across industries, including at businesses in the San Fernando Valley. Startups are putting the technology to use in sectors such as communications, manufacturing and health care in novel ways, and are seeing their operations grow rapidly. 

For example, Woodland Hills-based Lex Inc. is establishing new partnerships with universities for its AI-enabled word processor platform, Burbank-based mPulse Mobile Inc. is capitalizing on acquisitions to bolster its patient-engagement platform for health care providers and Sherman Oaks-based nFlux AI is leveraging computer vision to support factory work and manufacturing.

All of these companies are looking to situate their technology as a leader in their field and to find new ways to support human innovation. Some of the company leaders – such as Glendale-based Expper Technologies Inc. and nFlux AI – say that their mission is to supplement human workers’ abilities and increase their efficiency, rather than to replace them.

Expper says that its AI can fill in gaps in the health care system to support providers and improve patient care. Its product is an AI-enabled emotional-support robot called “Robin the Robot,” which works in pediatric units and elderly care facilities. Robin can be programmed to have the affect and communication style of a young child and is designed to interact with humans, help explain procedures and diagnoses, play games and tell stories and act as a supportive companion.

Robin the Robot

Expper chief executive and co-founder Karén Khachikyan notes Robin’s cost-efficiency: the product is available on a subscription basis, and Khachikyan says that it’s much less expensive than hiring additional staff members to provide emotional support to patients.

“The financial impact and positive impact of Robin is very, very big, because (facilities) see an increase in patient satisfaction as well (as a decrease in) staff burnout,” Khachikyan says. “Residents are often lonely, and they need extra care. Robin is a creature that is there to be their friend, to give them attention, to listen to them and make them feel good during difficult times.”

He adds that medical facilities often experience significant staff shortages and that Robin can help fill potential gaps in patient care.

“If technology can be used to provide real care, I think that’s the best thing that humanity can do,” Khachikyan says. “We’re living in historical times (with) how AI transformed technology … if it’s possible to make it affect our level of care or kindness, that would be amazing.”

Seyed Sajjadi, nFlux chief executive and founder, says his company’s goal is also to “amplify” human workers, rather than replace them. nFlux’s technology provides two computer vision-enabled products to employers. The first, called, nFlux Guide, can train workers to assemble a product. After that, nFlux Guide observes and analyzes assembly work to identify mistakes or errors as they happen, suggest fixes and prevent faulty or incorrectly made products from making it off the floor. The company’s platform is primarily used by manufacturers of medical devices, electronics and automotive parts.

The company’s second product, called nFlux Acuity, is an analytics tool that provides engineers with insights on their product or assembly line’s productivity. The data gathered can help those engineers look at ways to improve workers’ efficiency, address bottlenecks, identify common mistake or errors and see historical data on assembly progress.

“We’ve found a very good opportunity in manufacturing where, instead of replacing humans, we get to amplify them, and help the operators on the factory floor do their jobs a lot better,” Sajjadi says.

Some industries Trust AI less 

In some sectors, companies working with AI have had to work to show customers that the technology can be trusted. At mPulse, chief product and technology officer Sanjeev Sawai says his company has had to move slowly with its customer-facing AI. The platform develops AI-enabled digital-engagement tools to help health care and health insurance providers improve patient outcomes and reduce patient costs. Users can receive reminders to schedule appointments, adhere to medication regimens and learn about treatmens.

Sawai says one of mPulse’s challenges has been showing health care providers and professionals that that the results of its outcome-related programs are accurately constructed and contain no bias. He highlights that probabilistic models can often contain “distorted information” and that mPulse has had to work to show customers that its product is reliable. The second challenge involves health care providers’ “extreme caution” around using any patient-facing technology that could have unknown, negative impacts on health outcomes. 

“We have to walk slowly,” Sawai says. “(Providers) are also very sensitive about consumers’ privacy and security … I think we can propose a lot of things to do with AI, but health care is a fairly risk-averse and conservative industry. So, it takes some time (to show) that the AI is doing good things.”

Despite this challenge, mPulse has reached more than 100 million consumers. The company reported 106% year-over-year revenue growth in the fourth quarter, which it attributed to its acquisitions of health analytics platform Decision Point and health management and engagement platform Health Trio.

Hesitation or distrust of AI is not equal across all industries, though: in the communications sector, Lex chief executive and founder Nathan Baschez says that more universities are open to the use of AI. Lex’s AI-powered word processing and copy-editing platform is designed to serve as a high-powered editor that can help users brainstorm ideas, receive critiques, improve writing skills and generate new text. The company recently announced partnerships with the communications department of Tennessee-based Austin Peay State University, which is using Lex to edit university press releases, and with Brandeis University. Brandeis is using Lex in student writing seminars and is looking at the platform’s effects on students’ writing.

“Most universities take the stance that (AI) is a tool that people are going to use, and there’s a good way and a bad way to use it,” Baschez says. “Teaching students how to use it responsibly is key.”

Resources are needed for training

While AI can effectively create content, sort through information and more, the machine learning algorithms need to be trained with large amounts of data.

While text-generation AI has open-source data available, other AI companies may face more of a challenge. Chatsworth-based Machina Labs uses a combination of AI and robotics for machinery production, which allows factories to scale operations around changing product designs or assembly techniques quickly and easily.

When the company was first working to bring such technology to manufacturing, Chief Executive Edward Mehr says it faced the initial obstacle of finding manufacturing data it could use to train its AI. Machina ended up building its own datasets. The company set its system up to capture data and then trained its own AI on that consistently growing dataset.

“It was slightly harder than some of the SaaS companies out there because our data is not easily available,” Mehr says. “We had to figure out a way to build mechanical systems and physical systems that generate data, and those system had to be helpful (to customers) right off the bat, even without data.”

Companies working with AI in the Valley have access to a number of resources, including the Glendale-based Hero House accelerator, which is run by SmartGateVC and provides investment, guidance and networking opportunities to early-stage AI companies. At Burbank-based Disney Accelerator, which focuses on startups working with technology and media, four of this year’s five participants have an emphasis on AI application. 

Tech giants such as Glendale-based home services software provider ServiceTitan and Burbank-based media technology company Blu Digital Group have implemented notable ventures into AI in the last year in efforts to further serve customers and advance company growth. 

“I feel like we are finally entering this phase of AI now where … a huge progress had been made, seemingly overnight,” Baschez says. “We’ve been living in that world for a little over a year, and it’s starting to work its way into products, new companies are being created, like Lex, and then it’s working its way into existing companies’ product offerings. It’s fascinating to see.”

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