What Happened on Harold?
As recently as December 19, Mark Rhoades believed that the deal for the development on the site of the Shattuck Cinemas (usually captioned with its side street address of 2211 Harold Way although the current building fronts on Shattuck)was going to go through. He sent this email to his contacts on the City of Berkeley Planning Department staff and others:
“All: This email is to let everyone know that balance of the plan check fee for the Harold Way plan check submittal is going to be paid on December 30th. I will be away so Joe Penner will have someone deliver the check midday on the 30th. In addition, Planning will be providing a letter. I will send a meeting request for this event shortly. Happy Holidays everyone!”
Rhoades is the former COB Planning Department manager who now functions in the private sector as the expediter for corporations seeking permits for developments in Berkeley. Many of his former colleagues are still working for the city, so Rhoades’ name and contacts open doors in Planning for his clients.
However for 2211 Harold Way, aka Berkeley Plaza, insider advocacy has not turned out to be enough.
Few projects in the recent history of Berkeley have aroused so much opposition as this one. The use permit for this project was finally approved at a chaotic Berkeley City Council meeting in December of 2015 after months of heated hearings. Conditions of approval included reconstructing the ten theaters currently on the site as the Shattuck Cinemas, a provision which project opponents, many of them film buffs, demanded.
The next step was supposed to be securing a building permit within two years and paying the plan check fees associated with such permits. The Planning Department staff had the power to extend that time limit without the approval of the city council, and managers did grant two one-year extensions to the applicant, doing business as HSR (Hill Street Realty) Berkeley Investments LLC, but in the end, which came on New Year’s Eve, the company didn’t come through with the required fees.
In many ways, this deal was a classic example of the bait-and-switch method of land use regulation. The putative “developer” describes itself thus on its website: “Hill Street Realty (”HSR”) is a privately held real estate investment, management and development firm founded in 2001. HSR employs institutional discipline and entrepreneurial execution to generate attractive risk-adjusted returns from commercial real estate for its partners & investors.”
What this means, in ordinary language, is that in this case the company assembled parcels of real estate in downtown Berkeley and secured an “entitlement” to develop the property (in this case, got a use permit) and ever since has been trying to flip the entitled property to someone else to build and manage. This time they just couldn’t find a buyer.
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