In the affluent Pacific Palisades, a proposal to rebuild a burned Shell gas station into the neighborhood’s tallest apartment building has sparked controversy. The plan, led by owner Justin Kohanoff, includes up to 100 apartments with units reserved for low-income residents. This proposal comes after a devastating fire in January destroyed 770 rent-controlled apartments, leaving many without affordable housing options.
Kohanoff’s vision for the site on Sunset Boulevard involves an eight-story building with a Cape Cod style design. While he is eager to begin construction, he anticipates significant opposition from the community. Before the fire, Pacific Palisades was known for its exclusivity, with homes averaging $3.5 million and a median household income of $325,000. The area had only two rental units classified as affordable housing.
The loss of rent-controlled apartments has raised concerns about the future of income diversity in the Palisades. According to Anthony Orlando, an associate professor at Cal Poly Pomona, natural disasters often lead to increased rents, making it difficult for middle-income earners to remain in the area.
The fire’s impact extended beyond residential properties, with real estate losses potentially exceeding $30 billion, according to a Times analysis. The destruction affected 56% of properties in the Palisades, including commercial buildings, churches, and schools.
As the community grapples with rebuilding, political and community leaders are handling the affordable housing issue delicately. Mayor Karen Bass has emphasized that any changes will be made with community input. Meanwhile, recovery czar Steve Soboroff supports more apartments but stresses that rebuilding is the priority.
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