Voters Strike Down Measure S

LOS ANGELES—Voters struck down Measure S at the ballot box yesterday. Also known as the Neighborhood Integrity Initiative, the development measure would have placed a two-year moratorium on any development that would require an exemption to the general plan. Many high-profile public officials spoke out in opposition to the measure, along with the majority of the commercial real estate industry. The measure was defeated with nearly 70% of the vote.

“I think that Mayor Garcetti, the City Council and the L.A. Times did a yeoman's job of really calling Measure S out for what it was,” Mark Tarczynski, EVP at Colliers International and a development expert in Downtown Los Angeles, tells GlobeSt.com. “I have renewed faith in the voters to recognize that this was nothing more than a petty squabble between a guy that doesn't want to lose his view of the Hollywood sign and the City Council.”

The possibility of a development moratorium discouraged new project starts during the last several months. Now, that the measure has failed, Tarczynski is confident that activity will begin again. “There has been a collective pause where developers have held their breath and have been inactive, or at least somewhat inactive,” he says. “They have all been waiting to see the results of Measure S. Now, they have a green light to move forward.”

In addition to lost returns for developers, Measure S drew such opposition in the real estate community because it would exacerbate the supply/demand imbalance in the city. “We have a chronic housing shortage,” says Tarczynski. “We need to continue to build housing, and the way to drive housing prices down is to build more supply. Measure S would have locked in the current status quo, which would have meant zero to little housing development. That would have driven housing prices up tremendously, and things would have been even more unaffordable. Now that Measure S hasn't passed, hopefully, we will reach a point where supply will meet demand and housing prices will be more affordable.”

Although the measure didn't pass, it did shine a light on the development issues in Los Angeles. In addition to the moratorium, the measure would have also required that the general plan be updated every 10 years. Tarczynski says that was an aspect of the measure that he could support. “What really needs to happen is the City Council needs to do its job and update the general plan, once ever 10 years would be good, and update zoning to bring the city into modern times,” he explains. “I am hoping that this is a shot across bow, and City Council will update the zoning laws. If that happens, we will actually get some sane housing development where people can actually live. The Measure S threat really shows City Council that there are people out there that are concerned about zoning laws.”

LOS ANGELES—Voters struck down Measure S at the ballot box yesterday. Also known as the Neighborhood Integrity Initiative, the development measure would have placed a two-year moratorium on any development that would require an exemption to the general plan. Many high-profile public officials spoke out in opposition to the measure, along with the majority of the commercial real estate industry. The measure was defeated with nearly 70% of the vote.

“I think that Mayor Garcetti, the City Council and the L.A. Times did a yeoman's job of really calling Measure S out for what it was,” Mark Tarczynski, EVP at Colliers International and a development expert in Downtown Los Angeles, tells GlobeSt.com. “I have renewed faith in the voters to recognize that this was nothing more than a petty squabble between a guy that doesn't want to lose his view of the Hollywood sign and the City Council.”

The possibility of a development moratorium discouraged new project starts during the last several months. Now, that the measure has failed, Tarczynski is confident that activity will begin again. “There has been a collective pause where developers have held their breath and have been inactive, or at least somewhat inactive,” he says. “They have all been waiting to see the results of Measure S. Now, they have a green light to move forward.”

In addition to lost returns for developers, Measure S drew such opposition in the real estate community because it would exacerbate the supply/demand imbalance in the city. “We have a chronic housing shortage,” says Tarczynski. “We need to continue to build housing, and the way to drive housing prices down is to build more supply. Measure S would have locked in the current status quo, which would have meant zero to little housing development. That would have driven housing prices up tremendously, and things would have been even more unaffordable. Now that Measure S hasn't passed, hopefully, we will reach a point where supply will meet demand and housing prices will be more affordable.”

Although the measure didn't pass, it did shine a light on the development issues in Los Angeles. In addition to the moratorium, the measure would have also required that the general plan be updated every 10 years. Tarczynski says that was an aspect of the measure that he could support. “What really needs to happen is the City Council needs to do its job and update the general plan, once ever 10 years would be good, and update zoning to bring the city into modern times,” he explains. “I am hoping that this is a shot across bow, and City Council will update the zoning laws. If that happens, we will actually get some sane housing development where people can actually live. The Measure S threat really shows City Council that there are people out there that are concerned about zoning laws.”