J-Town Leaders Meet with New Otani Buyers
By GWEN MURANAKA
RAFU ENGLISH EDITOR IN CHIEF
Monday, Sept. 10, 2007

MARIO G. REYES/Rafu Shimpo
A view of Weller Court and New Otani Hotel and Garden in Little Tokyo.

A task force of Little Tokyo community leaders met informally on Tuesday with representatives of 3D Investments, who sought to ease concerns about their intentions following their purchase of the New Otani Hotel and Garden and Weller Court.
“They strongly said they are respectful coming into this community. They know they are outsiders and they wanted to express to us that their intentions are good and that they are ethical people who want to work with the community,” said Chris Aihara, Little Tokyo Community Council chair.

The meeting, called by 3D Investments, was attended by Nader and Faraz Daneshgar of 3D. Besides Aihara, Little Tokyo members included Irene Hirano, president and CEO of the Japanese American National Museum; Frances Hashimoto, owner of Mikawaya Confectionary and member of the Nisei Week executive committee; Bill Watanabe, executive director, Little Tokyo Service Center; Noriaki Ito, rinban of Higashi Honganji Buddhist Temple; Alan Kumamoto, new chair of the LTCC committee on planning and cultural preservation and Tom Kamei, former LTCC chair.

3D Investments, a Beverly Hills based family-owned real estate equity firm, made headlines last year when they bought several landmark properties within San Francisco’s Japantown area. They closed escrow with East West Development Corp on the New Otani on Aug. 17—less than a month after the finalization of the sale of Japanese Village Plaza to Malibu-based American Commercial Equities. The sales in quick succession have caused concern in the Little Tokyo community about maintaining the area’s Japanese American identity.
Aihara, who noted the next LTCC meeting is on Sept. 18, said 3D felt they are not ready to make a presentation before the council. An invitation was also extended to East West Development to attend the meeting.

“They (3D) said in 60 days they will be more ready to respond to questions,” Aihara noted.
Tuesday’s meeting was also attended by Ira Kleinrock of Palladium Hotel Group, which will be managing the hotel after the contract with New Otani expires in December. Aihara said they wouldn’t get into specific details about their plans for the New Otani; although they assured the group that the hotel is working with the Japanese Chamber of Commerce and would still conduct Oshogatsu (New Year’s) events as usual. 

Watanabe observed that while the issue of communication wasn’t raised, that 3D explained the way they do business.
“I think they wanted to show that they’re not evil or trying to hide, but they do have a certain style,” Watanabe said. “This is how they do business. They like a cloak of secrecy while they’re developing a deal.”
Takashi Ito, president of East West Development, said Wednesday in an interview in Japanese, that he understands the community’s concerns, but that they chose 3D Investments with the interests of Little Tokyo in mind.

“Before making the decision of selling the properties, we studied who all those potential buyers are. We talked to people in San Francisco and we talked to Kintesu. 3D has a good reputation and seems to be getting along with the Japanese community there, so we felt good about doing business with them,” said Ito.  

“Little Tokyo is becoming a more diverse place. It used to be the destination for Japanese tourists, because they could speak Japanese and use Japanese yen. But those days are gone. Now they stay in Santa Monica or Beverly Hills. I can understand how important it is to preserve the Japanese American identity here in Little Tokyo, but this is a new era. It’s not ‘Little Tokyo = Japanese’ any longer.”
On Wednesday, Los Angeles City Councilmember Jan Perry expressed serious concern about the lack of communication leading up to the sale of the New Otani Hotel and Weller Court. In an interview with The Rafu Shimpo, Perry, whose district includes Little Tokyo, said, “I was disgusted to find out the way it was sold, in the sense that the community has been so supportive of the hotel. It was shocking to find out and I hope that it is not an action that sets a tone for the future.”

Perry said she has yet to be contacted by East West Development Corp., or 3D Investments, who quietly closed escrow on the Japanese-themed hotel and shopping complex, following weeks of  rumors and speculation within the Little Tokyo community.
“The first I heard about it was from a reporter. That’s pretty bad,” Perry said. “At some point they will have to talk with me about what they need from the city.”

The New Otani Hotel, opened in 1977, is the site of many Japanese American community events and most recently hosted the Nisei Week Awards Dinner and Pioneer Luncheon.
Perry said, “The reason (the New Otani) has been so successful is the support of the community. The new owners are going to have to recognize that.”

Perry said she would “stand firm” on preserving Little Tokyo’s cultural identity.
“I am very committed to making sure the community is respected and that the history and culture of the area is preserved. This is one of three of the last remaining Japantowns in California,” Perry stated.