Pacific Palisades fire recovery is clouded by an imminent housing battle

Good morning. Here’s what you need to know to start your day.

• Pacific Palisades fire recovery is clouded by an imminent housing battle.
• L.A. County sues Southern California Edison over the Eaton fire.
• Eau L.A. L.A.! 11 fragrant spots for Angelenos to find — or create — the perfect scent.
• And here’s today’s e-newspaper.

Should building back better mean building more affordable housing?

It took firefighters 25 days to contain the blaze that ripped through Pacific Palisades. The fight over how to rebuild the wealthy community will be a much longer battle.

The Palisades fire destroyed more than 5,500 homes — mostly single-family residences, but also 1,300 multifamily units and mobile homes.

As debris gets cleared, claims get processed and property owners start planning new structures, different visions are emerging. For some, building back better should include more housing that’s affordable. But as Times reporter Liam Dillon chronicled this week, some residents and leaders are signaling familiar opposition to new affordable housing, as others suggest making the affluent enclave more exclusive.

“Before the fire, the average home in Pacific Palisades cost $3.5 million, the median household earned $325,000 and the total number of rental units restricted as affordable housing was two,” Liam wrote in his latest Times subscriber exclusive. “Landlords expect to struggle through a morass of bureaucracy to bring back their buildings, and confusion over possible income or rent restrictions only adds to the unpredictability.”

Workers in February watch the removal of debris from a home lost to the Palisades fire.

(Genaro Molina / Los Angeles Times)

Battle lines form, some cruder than others

One prominent figure in the rebuilding effort is billionaire developer Rick Caruso, who launched the nonprofit fire recovery foundation Steadfast LA last month.

Caruso has said he’s generally in favor of affordable housing, just not in Pacific Palisades, citing concern that “outside groups with no ties to the area” would hamper reconstruction work.

Joe Lonsdale, co-founder of data-mining company Palantir and a board member of Caruso’s new nonprofit, framed his critique against housing for low-income residents in a different way on social media, posting to X: “Sorry guys, no rebuilding your fancy houses that burned down by the ocean in LA until there’s a new crack den installed right in the middle of the neighborhood.”

Liam spoke with one local business owner who has grand plans for an apartment building where his burned out gas station now stands. Justin Kohanoff owns the station on Sunset Boulevard but told Liam he’d long hoped to build housing on the site. He envisions an eight-story building with up to 100 units, including some reserved for low-income residents, and plans to bring his proposal to the city in the coming months.

Justin Kohanoff, the owner of a Shell gas station in the Pacific Palisades, stands on the site of his destroyed property in February.

(Genaro Molina / Los Angeles Times)

“We have time on our hands so we can deal with the city and fight with them to build what we want to build,” Kohanoff said. “We know they’re not going to give it to us on a silver platter.”

As with previous debates over affordable housing, some Palisades residents have leaned into conspiracy theories, sparking reassurances from city and state leaders that rezoning would not be a top-down decision.

Developer Steve Soboroff, who is serving as Mayor Karen Bass’ (unpaid) recovery czar, expressed support for building more apartments in Pacific Palisades, though he told Liam it’s not the priority. But efforts to block affordable housing in the neighborhood are “elitist,” he added.

“In the deeds, it used to be, ‘No Jews and No Blacks,’” Soboroff told Liam. “What are they going to put in the deeds now, ‘No Affordable Housing?’ That stuff doesn’t hold muster.”

The density dilemma

One way to make homes more affordable is to build denser housing, like condos and apartment buildings so neighbors live closer together.

“Because of its wealth and high-quality amenities, Pacific Palisades fit the description of a community prioritized for affordable housing under state and local policies, with the potential for projects to receive financial and zoning incentives,” Liam explained.

But the majority of land zoned for housing in Pacific Palisades and the rest of L.A. (and across the state) permits only single-family homes. That’s a source of ongoing friction between affordable housing advocates and residents in those low-density neighborhoods who are quick to malign efforts to change the status quo in their communities.

Public safety will almost certainly play a role in future debates, as adding more residents means adding more cars to local roads that could not handle evacuation traffic during January’s fire.

A 75-unit apartment building that was covered by Los Angeles rent control laws was destroyed in the Palisades fire along Sunset Boulevard in the Pacific Palisades.

(Genaro Molina / Los Angeles Times)

Affected renters face a tough road ahead

Affordability had been possible for hundreds in Pacific Palisades through rent-controlled apartments.

But after the fire destroyed many of those units, resistance to affordable housing and skyrocketing construction costs present major challenges for landlords and their former tenants hoping to stay in the neighborhood.

And it’s unclear how local and state laws will help or hurt renters’ chances, Liam explained.

“A Newsom executive order from last month implies that all rent-controlled housing that burned down in the Palisades must be covered by rent control if it’s rebuilt,” he wrote. “City legal officials have indicated the opposite through City Atty. Hydee Feldstein Soto’s sponsorship of new state legislation that, if signed into law, would apply rent-control rules to rebuilt apartments.”

You can read more from Liam about rebuilding and affordability in Pacific Palisades in his Times subscriber exclusive.

Today’s top stories

Edison electrical lines and transmission towers can be seen near the origin of the Eaton fire in Eaton Canyon in February.

(Allen J. Schaben/Los Angeles Times)

L.A. County sues Southern California Edison over the Eaton fire

• The lawsuit is the latest to allege that Edison’s equipment caused the blaze, which destroyed about 9,000 homes and killed 17 people.
• Residents have filed more than 40 lawsuits against the utility, focusing on transmission towers where the first flames were spotted.
• The lawsuit marks the third time the county has sued Edison since 2018.

California farmers backed Trump. Now, his tariffs could hurt them

• The tariffs come as California farmers are already rattled by worries that a massive deportation effort — which Trump promised during his campaign — could decimate the ranks of low-wage farmworkers who plant and harvest crops.
• Still, many farmers, who backed Trump by large margins in the 2024 election, were reluctant to speak openly about their concerns, for fear of being seen as criticizing him or because they hope the administration will protect farmers as it has in the past.

What else is going on

• Parents are blaming Snapchat for their teens’ fentanyl deaths. Will an L.A. lawsuit shape the future of social media?
• George Lowe, the voice actor beloved for his irreverent Space Ghost, has died at 67.
• Alec Baldwin should testify in a ‘Rust’ wrongful death suit, Gloria Allred says.
• Veterans speak out on the Trump administration’s plans to cut the VA’s budget.
• Los Angeles launches an effort to encourage starter homes on city-owned vacant lots.
• One day after President Trump’s sweeping tariffs took effect, Mexico reacts with fear and defiance.
• Trump delays Canada and Mexico auto tariffs for one month as a temporary reprieve following pleas from industry leaders.
• Trump’s address to Congress revived false or misleading claims on immigration.
• The Supreme Court turned down an appeal from the Trump administration over disbursing foreign funds.
• The Justice Department launches investigation into allegations of antisemitism at the University of California.
• Pasadena high school seniors, Steve Carell has a surprise for you: free prom tickets.
• A high-end San Diego County resort bans children from overnight stays.

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Commentary and opinions

• President Trump brags about American power and respect while he trades it away, writes columnist Jackie Calmes.
• California’s rooftop solar infighting is a colossal waste of time, columnist Sammy Roth writes.
• In Trump’s address to Congress, boredom meets terror — and Democrats do nothing, columnist Anita Chabria writes.

This morning’s must reads

(Stephanie Jones / Los Angeles Times; Getty / JB Lacroix)

Justin Baldoni’s tumultuous road to the center of a Hollywood scandal. Last year’s romantic drama “It Ends with Us” was supposed to be the culmination of Baldoni’s transformation into a multihyphenate force. But despite grossing over $350 million worldwide after its August release, the success of “It Ends With Us” has been overshadowed by a bitter, escalating feud between Baldoni and his co-star Blake Lively.

Other must reads

• RFK Jr. wants to make food safer. Trump wants to make it cheaper. Can we have both?
• The rise and fall of L.A.-based fashion pioneer Forever 21.
• Control issues? These two simple words could help.

How can we make this newsletter more useful? Send comments to [email protected].

For your downtime

A wide range of scents line the front wall at the Institute for Art and Olfaction in Chinatown.

(Solomon O. Smith/For The Times)

Going out

• 👃🏽😌Eau L.A. L.A.! 11 fragrant spots for Angelenos to find — or create — the perfect scent.
• 🍸14 unique martinis redefining the classic cocktail in L.A.

Staying in

• 📖From dad Donovan’s rejection to a toxic relationship with Anthony Kiedis, Gen X it girl Ione Skye bares all in her new book, “Say Everything.”
• 🎬Inside the downfall of mommy vlogger Ruby Franke: 8 takeaways from the Hulu docuseries.
• 🦪 Here’s a recipe for Sandy Ho’s funky fresh oysters.
• ✏️ Get our free daily crossword puzzle, sudoku, word search and arcade games.

A question for you: What’s your favorite local restaurant?

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And finally ... from our archives

Shaquille O’Neal poses with Jerry West after signing with the Lakers on July 19, 1996, at the Forum.

(Andrew D. Bernstein / NBAE via Getty Images)

On March 6, 1972, legendary basketball player Shaquille O’Neal was born. When the Lakers signed O’Neal away from the Orlando Magic in 1996, former Times reporter Mark Heisler wrote about how the team “hit the shaqpot” by giving him a $120-million, seven-year contract that tilted the balance of power in the NBA.

Have a great day, from the Essential California team

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