LOS ANGELES — Construction of a controversial homeless housing project in West Los Angeles remained in limbo Wednesday after a local business owner filed a claim alleging the city violated state law.

What You Need To Know

  • Construction of the Midvale Housing Project, a 33-unit interim housing facility in the Rancho-Pico area, started two weeks ago, but as of Tuesday, any further work has been suspended, according to the Midvale-Pico Coalition

  • Leiauna Anderson, a leader of the coalition, called it a “big victory” for local businesses

  • The Los Angeles City Attorney’s Office did not immediately respond to a request for comment, nor did the office of City Councilwoman Katy Yaroslavsky, who represents the Fifth District

  • Nearly a dozen business owners and managers of nearby stores filed declarations with the court to highlight how the loss of the parking lot has negatively impacted their businesses, according to the Midvale-Pico Coalition

Construction of the Midvale Housing Project, a 33-unit interim housing facility in the Rancho-Pico area, started two weeks ago, but as of Tuesday, any further work has been suspended, according to the Midvale-Pico Coalition, a group formed to advocate against the project. Leiauna Anderson, a leader of the coalition, called it a “big victory” for local businesses.

The Los Angeles City Attorney’s Office did not immediately respond to a request for comment, nor did the office of City Councilwoman Katy Yaroslavsky, who represents the Fifth District. In 2023, the councilwoman spearheaded plans for the interim housing facility, citing a need to bolster shelter and beds for unhoused residents in her district.

Bureau of Engineering personnel identified a city-owned parking lot, located at 2377 Midvale Ave. near Pico and Westwood boulevards, for construction of the facility, which would feature amenities such as laundry units, storage, a pet area, office/case management conferencing space, dining areas and security fencing. The City Council previously allocated $4.6 million to support the project.

In the lawsuit filed in the Los Angeles Superior Court, Brian Collesano, owner of Saucy Bird, a restaurant and catering company located directly across the street from the Midvale Housing Project, sought a temporary restraining order to prevent its completion. Attorney Darin Margules is representing Collesano in the case.

The lawsuit said the city violated California’s eminent domain law when it changed the use of the parcel of land from parking to housing without holding public hearings.

Nearly a dozen business owners and managers of nearby stores filed declarations with the court to highlight how the loss of the parking lot has negatively impacted their businesses, according to the Midvale-Pico Coalition.

Superior Court Judge Curtis Kin set Sept. 25 for another hearing to determine whether the temporary restraining order should become permanent, as well as to possibly return the city-owned parcel back to its original use as a parking lot rather than for interim housing.

Yaroslavsky previously said she would work to address business owners’ concerns in the area where street parking is limited. The lot benefited more than two-dozen businesses, according to the Midvale-Pico Coalition.

“She left the businesses high and dry with no parking for their customers,” Anderson said in a statement. “She fabricated a phony solution that didn’t work. Shame on her.”