Hearing Officer To Review Local Hiring on Walnut Street Project

Hearing Officer David Reyes, director of the city’s Planning and Community Development Department, has rescheduled a meeting with developers of a project at the site of the former Parson’s Corp. campus to discuss a local hiring initiative that has fallen short of agreed-upon hiring goals.

Per a development agreement, PPF OFF 100 West Walnut Lincoln Properties agreed to give priority hiring consideration to local workers and businesses, with the goal of directing 20 percent of building construction-related jobs and contracting opportunities to Pasadena residents and Pasadena-based businesses.

PPF also agreed to explore opportunities for mentoring and apprenticeships for participants so that the project would serve as a training ground and springboard for future employment and contracting opportunities for Pasadena residents.

The project will cover 6.4 acres and include a 210,000 square-foot in five stories of Class-A office space (known as 10 West Walnut). The project includes 400 residential units, 17,500 square feet of retail and dining space, and three levels of below-grade parking.

According to city documents, the purpose of the project is to transform a suburban-style campus with centralized buildings and expansive surface parking into “a pedestrian-oriented development with mix uses.”

According to the agenda, the purpose of the meeting is to “review the Development Agreement and determine whether the applicant, PPF OFF 100 West Walnut Lincoln Properties, has complied in good faith with the terms and conditions of the Development Agreement. specifically Section 10 (l).
That section lays out the local hiring initiative.

When contacted by Pasadena Now last week, the developers said, “Our team is currently putting together the next report for the project, which addresses the questions you laid out. It should be available in about a month. We will circle back at that time.”

Pasadena Now reported in February that 200 people attended a job fair held by the developers. At that time, the numbers were abysmal. Only 43 of the more than 3,000 workers hired for the project were Pasadena residents, according to a recent city staff report.

The project is in City Council District 3 which is represented by Councilmember John Kennedy. Kennedy has called for a review of local hiring on the project several times.

“I’ve only gotten anecdotal information,” said Kennedy. “They’re supposed to come before the City Council soon. And my concerns center around their commitment to have 20 percent local hire, 20 percent contracting, and 15 percent local sourcing of materials. As far as I’m concerned, thus far, they have been a dismal failure. And I have thought to refer companies, individuals, et cetera, to their outreach staff. And for the most part, it seems like I’m talking to deaf ear as it goes up the chain of command.

“The issue is that the top leadership of Lincoln Properties needs to make the simple decisions; ‘We will fully comply with the 20 percent local hire, 20 percent contracting and 15 percent local sourcing of materials.’ From day one, there has not been a commitment to that,” said Kennedy, who previously called the project “the largest real estate development project in the history of Pasadena.”

Kennedy said that he has sought the assistance of the city attorney and the city manager’s assistance in forcing Lincoln Properties to keep its commitment.

“There have been other entities that have developed along Fair Oaks who had similar requirements for opportunities for our community. Not only did they keep their commitment; they exceeded it,” Kennedy said.

If the company does not live up to its local hiring commitment, it could lead to a default of the agreement. City officials can grant written extensions to the agreement.

At the start of the state lockdown, Gov. Gavin Newsom deemed construction an essential business, which has allowed work to continue on the project.

Local hiring could be an economic shot in the arm for the city.
Pasadena’s unemployment rate dropped to 13.4 percent in August, down from a peak of 17 percent in April and May,
according to the U.S. Bureau of Labor Statistics.

The unemployment rate in August 2019 was 4.1 percent. The company has advertised outreached events in several media outlets, including Pasadena Now.

In January 2019, an outreach event was held at the American Legion Post No. 13, calling for Pasadena residents and businesses with construction experience.

Several local organizations were also contacted, including the
Flintridge Center, which has a pre-apprenticeship program for former prison inmates. Also contacted were the Pasadena Community Job Center on North Lake Avenue and Pasadena City College, where there is a construction trades program.

More than a year since then, hundreds of Pasadena locals visited Pasadena’s Flintridge Center Wednesday, Oct. 14, as officials with the 10 West Walnut project held a hiring fair.

“It is our goal to hire as many local residents as possible on the 10 West Walnut project,” said Catherine Rajan of the Construction Services Group, which is overseeing the hiring for the project.

“We have already connected many residents to opportunities, and we see significant opportunities ahead,” she added. “We are holding this trade fair to ensure that all members of the community who want to work are given the chance for economic growth as a result of this project.”