New developers purchase land near Happy Face Hill

After being on hold for nearly two years, a project to build 66 condominiums on the eastern end of Simi will move forward under new developers.

Last month, a handful of investors bought the property adjacent to Simi’s Happy Face Hill that was owned by Encino-based developer Larwin Co. until the company went bankrupt and had to turn over the piece of real estate to the bank.

Palmdale 47th LLC now owns the graded land at the north end of Kuehner Drive and clearly visible from the 118 Freeway.

The acquisition means the city was not successful in its attempt to purchase the 10.2-acre property to preserve it as a natural gateway into Simi’s eastern entrance.

“The city certainly had an interest in the land if it was at a price that was . . . an affordable price to the city,” City Manager Mike Sedell said.

Councilmember Glen Becerra was particularly interested in the purchase of the property. He hoped the site could be used for active recreation—in partnership with the park district—or kept as passive open space.

“For me, it was a great opportunity with kind of a disappointing outcome that we weren’t able to secure that property for the city,” Becerra said, adding that purchasing the parcel was the only legal way for the city to obtain the property and ward off any development.

The city explored the option in part because the failing real estate market had brought down the price of the land. Becerra said $1 million or $2 million would have been a “reasonable” price for the city to spend on the property.

Another motivating factor behind the city’s efforts was the community’s response to the development both before and after it was approved.

Some residents spoke out in passionate protest, citing the removal of native oak trees, the shrinking amount of open land for wildlife and aesthetic enjoyment, and an obstructed view of the mountains as their main concerns

Because the property negotiations were held in closed session, Sedell couldn’t say why the city was unable to secure the land or why the bank chose to sell the property to developers instead.

He did say that the council has no interest in taking a property through eminent domain and that if there is a willing buyer and seller, the city won’t stand in the way.

The City Council approved the development by a 4-1 vote in April 2005.

The decision came after Larwin had scaled down the number of condos from 90 in 2003 and 75 in January 2005 to the 66 outlined in the final plan.

Councilmember Barbra Williamson was the sole dissenter, objecting particularly to the proposed location.

But in November 2007, after months of grading work had already been completed, Larwin decided to halt construction due to poor housing market conditions. The delay was to last only until spring 2008, but in the end the developer had to completely abandon the project.

Though the site has new owners, the conditions of approval on the land still stand, Sedell said.

“They have to develop it with what’s been approved there or come back to the council,” he said.

Conditions include a high level of landscaping, particularly along the front of the development, and a road built by the developer from Mount Sinai Memorial Park, off Yosemite Avenue, to Kuehner Drive.

“If they’re going to build, they are going to have to build the very highquality project that was approved,” Becerra said.

Jon Friedman, operating manager of Palmdale 47th LLC, said he has no intention of modifying the project.

“Our plans are to take the project exactly how it was approved, dust off the architecture, engineering and landscape plans that have been sitting for over two years, reinstate them and hopefully next spring or summer build the project,” said Friedman, a Thousand Oaks resident.

He estimated that it would take about two years to build and sell the 66 town houses, but added that the time frame is ultimately a function of the market.

Still, he said he believes there’s a desire for smaller, attached homes that are within a first-time homebuyer’s price range. In addition, seven of the units will be affordable to lower-income families.

“Between the land and the quality of the architecture and providing some affordable housing, I think it will be an A-plus project,” Friedman said. “We have been in town for a long time, and we understand the dynamics, and we will do whatever we need to do to make the residents happy.”

Friedman would not comment on how much the investors paid for the property.

Longtime Simi Valley resident Tom Richard, who regularly uses the trails near Happy Face Hill, said he had mixed feelings about the development resuming.

“They’ve relandscaped the hill, and I guess that’s progress. I liked it the way it was,” he said. “I prefer that they didn’t do anything, that they just left it free space like that.”

Richard added that he hopes the gate at the end of Mount Sinai Drive will be unlocked and that the trails will be extended and maintained.