Black Developers Refuse To Work With California Councilman Recorded Laughing at Racist Statements

Two Black real estate developers behind the proposed $1.6 Billion Angels Landing Project in downtown L.A. are refusing to work with a city councilman involved in a leaked recording that sent the city council into chaos.

According to Business News, developers Victor MacFarlane and R. Donahue Peebles sent a letter last week to Executive Council Chairman Mitch O’Farrell calling for the resignation of Councilman Kevin De Leon.

According to CBS News, Farrell stripped De Leon and Councilman Gil Cedillo of their committee assignments after they were caught in a leaked recording laughing after City Council President Nury Martinez compared the Black son of white council member Mike Bonin to a “changuito,” a Spanish term for a little monkey, and made other racist statements.

MacFarlane and Peebles are now refusing to work with De Leon in light of the leaked recording, adding that they fear a racial bias against them. The Angels Landing Project is in De Leon’s district and could not have proceeded without the support of De Leon and Martinez, who resigned last week amid numerous calls to step down, including from President Joe Biden.

In the letter provided to BLACK ENTERPRISE, the two men said another council member should oversee the approval process for the proposed skyscraper residential and hotel complex they want to finish in time for the 2028 summer Olympics.

However, according to Peebles, De Leon and Martinez have refused to meet with the two men for months.

“As two African Americans who have spent their careers championing inclusivity, we find their actions offensive to ourselves and to a number of dignified, deserving, respectable and proud individuals of our culture,” the developers wrote in the letter.

Pete Brown, a spokesperson for De Leon, dismissed the complaint by the Black developers, calling it a negotiation tactic. According to Brown, MacFarlane and Peebles are using the leaked recording to negotiate from a position of strength and force council members to agree on terms that may not favor the public interest.

“The notion that any delay in this project is due to a council member and not the developer’s inability to provide a proposal that meets City of Los Angeles and California Redevelopment Agency standards is outrageous,” Brown told Business News.

In the aftermath of the leaked recording, De Leon has refused to resign. In an interview with CBS Political reporter Tom Wait, the council member said he accepts responsibility for his actions.

“I accept my responsibility for a lot of that pain that exists today,” De Leon said. “I have to do the hard work. I have to repair. I have to help heal. I have to help restore.”

Brown added that it is not De Leon’s policy to not have direct contact with builders, something Peebles said is a surprise to him, adding every time the two men have tried to meet with the councilman, they’ve been given excuses but were never told he doesn’t meet with developers.

Furthermore, according to the developers, Angels Landing will have a major, positive economic impact on downtown Los Angeles and the city at large. Angels Landing is projected to create a $1.6 billion local economic infusion, as well as the following economic benefits:

• More than 8,300 new jobs would be created during Angels Landing’s construction.
• Workers associated with Angels Landing’s design and construction would earn an estimated
$731 million in direct, indirect and induced earnings.
• When Angels Landing is completed and open to the public, a permanent workforce will be
central to its operations.
• Angels Landing is committed to a minimum of 30% minority-owned and women-owned business
procurement, equating to a target of nearly $500 million for minority and women-owned
businesses – in a city where half the population is Latino.
• 20 percent affordable housing for Los Angeles residents.

“We stress that we want to bring Angels Landing to fruition,” the developers wrote.

“We still believe in Los Angeles and are demonstrating that by the millions of dollars we have committed to Angels Landing even during the
pandemic and by the billions of dollars we have previously invested in Los Angeles. But we can no
longer work with Council Member de León.”