10 MONTEREY COUNTY WEEKLY DECEMBER 14-20, 2023 www.montereycountyweekly.com NEWS Between 2000 and 2010, on the heels of the closure of Fort Ord, Marina’s population dropped by 21 percent, bottoming out at 19,714 residents. During that same time, the city’s downtown, if one can call it that, flagged. Concurrently, in 2001, Marina City Council decided that an attractive, pedestrian-friendly downtown was critical to the city’s long-term prospects. Meetings were held and committees were formed, which all culminated in a Downtown Vitalization Specific Plan in 2006. At a Dec. 5 council meeting, as the hour was approaching midnight, the councilmembers stopped talking just long enough to allow two consultants who had come to the meeting from afar—one, a traffic engineer, and the other, a landscape architect—to give a presentation about a long-envisioned project that’s collected dust for more than a decade: revamping the commercial corridor of Del Monte Boulevard, which at one time was Highway 1, and it shows. City Manager Layne Long told the council, “This project really is a transformational project in our city,” adding that it’s been talked about since 2005. City Council will revisit the topic at its first meeting in February, Long says. As currently envisioned in the plan, on the southbound side heading toward Highway 1, the street would be narrowed from two lanes to one; on the northbound side, it would start to narrow after Palm Avenue. In surveys conducted by the city’s consultants, residents wanted drought tolerant plants that would look good all year, but also add some color. Pedestrian and sidewalk safety were also top priorities. Middle Ground Marina is finally dusting off its dream of making its downtown more vibrant and welcoming. By David Schmalz Since 2020, California’s Homekey program has created over 6,800 homes in the state for people who were living without housing or on the brink of losing their housing. The total awarded so far for projects either constructed or yet to be constructed is nearly $2 billion. In Monterey County alone, the state has awarded over $40 million in the last three years to create nearly 250 units in Salinas and King City. Unfortunately, those units may now be in jeopardy, since developer Shangri-La Industries has been racking up unpaid bills and defaulting on loans, as well as failing to pay property taxes. There are currently three active cases in Monterey County Superior Court where Shangri-La is named as a defendant, two involving unpaid bills for construction materials and work performed, and one for default on a loan at the first Homekey project in the county at 545 Work St. in Salinas. That project, sponsored by the City of Salinas, was awarded nearly $7 million by the state in 2020, toward the $12 million purchase price for the former Good Nite Inn. The deal included Shangri-La covering the rest of the purchase price, plus construction, and its partner nonprofit, Step Up, agreed to provide supportive services to residents. Shangri-La would remain the owner of the property, with units remaining affordable for 10 years. The plan was to create just over 100 units, and it was able to partially open in December 2020 to 64 residents. Unforeseen delays have prevented the project from being fully completed. To make up for the gap between the state’s award and the cost of purchasing the motel plus construction, Shangri-La took out loans, as it has done in all of its projects in the state. Medalist Partners Asset-Based Private Credit Fund is now suing Shangri-La for failing to pay the loan for 545 Work St., which with interest was $14.2 million at the time the case was filed on Nov. 8. According to court records, Medalist uncovered the fact that Shangri-La had not paid property taxes totaling $82,000. Medalist also asked the court to appoint a receiver for the property, removing control from Shangri-La. In a rebuttal to Medalist’s complaint, Shangri-La executives said in court documents that they are in the process of refinancing the loan and that they should be able to repay Medalist within weeks. (Shangri-La representatives did not respond to requests for interviews.) Two companies, Johnson Engineered Systems and Northstar Development and Construction, are suing over unpaid invoices for a project at 1030 Fairview Ave. in Salinas. Northstar is suing for breach of contract; the company claims it’s owed over $1.8 million. Subcontractor JES is claiming over $264,500 in allegedly unpaid invoices. Shangri-La has been awarded more than $70 million in capital costs by the state for projects in Monterey County and in Southern California. According to The Real Deal, a real estate news outlet, Shangri-La has failed to keep up payments on all its Homekey projects. “We are aware of these troubling reports regarding Shangri-La Industries,” a spokesperson for the state Department of Housing and Community Development says. “HCD is actively investigating apparent violations and cannot comment further at this time.” A Salinas Homekey project on Fairview Avenue sits unfinished. A contractor and subcontractor are suing Shangri-La for unpaid bills. Alarm Bells The developer behind Homekey housing projects is defaulting on bills and loans. By Pam Marino Making the median on Del Monte Boulevard in Marina safer and more aesthetically pleasing has long been a priority of the city’s elected officials. “We are aware of these troubling reports.” DANIEL DREIFUSS DANIEL DREIFUSS
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