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Famed architect vanishes and leaves unpaid creditors behind.


Famed architect vanishes and leaves unpaid creditors behind

Internationally acclaimed architect Arthur Erickson Arthur Charles Erickson CC (born June 14, 1924, in Vancouver, British Columbia, Canada) is an internationally celebrated Canadian architect. He studied Asian languages at the University of British Columbia, and later earned a degree in architecture from McGill University , designer of the largest development project in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or , California Plaza The name California Plaza may refer to one of the following locations in Los Angeles:
  • Omni Los Angeles Hotel
  • One California Plaza
  • Two California Plaza
, has been evicted from his West Los Angeles
  • West Los Angeles, Los Angeles, California, a neighborhood of Los Angeles
  • West Los Angeles (region), a popularly identified region of Los Angeles, incorporating the neighborhood above
 office and has quietly left town, leaving behind a trail of angry and unpaid consultants.

"We get suspicious when we called over there (to Erickson's L.A. offices) and their phones had been disconnected," said Stephen Hellman, a Mid-Wilshire mechanical engineer who claims to be owed $100,000 by Erickson. "So my partner and I went over there and it looked like somebody had walked in and said, |Let's get out of here.' There were drawings left on the desks and papers everywhere. It wasn't an organized move."

A dumpster in the alley behind Arthur Erickson Architects' offices at 125 N. Robertson Blvd. was filled last week with blueprints, renderings, sketches and various architectural documents.

Erickson, in a phone interview from his offices in Vancouver, Canada, last week confirmed that he had been evicted from his L.A. offices.

"We had a dispute with the landlord and it wasn't handled properly; it was partially our fault," he conceded. "We just didn't get back to him in time and negotiate properly. He finally just got fed up because nobody would answer the phone."

Erickson claimed he was unaware that his unpaid creditors had not been kept informed of his L.A. office closing.

"It was my presumption that communication (with unpaid creditors) was being kept open," he said. "My area of expertise is design, not the business end. For that, I have to rely on others and, unfortunately, sometimes that doesn't work out."

Erickson would not identify the "business-end" person or persons responsible for not keeping his unpaid creditors informed.

Earl Walls, a laboratory design consultant in San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay.  who also claims to be owed money by Erickson, advised his fellow stiffed consultants to forget about collecting any time soon.

"Mr. Erickson is an excellent architect, but he's a lousy businessman," Walls asserted. "He's very apolegetic about the pickle he's in, but none of us (consultants) are getting paid."

Walls may be willing to write off Erickson's debt, but Hellman said he and his partner plan to actively pursue the matter. The two partners have arbitration clauses in their contracts with Erickson, so they are precluded from filing a lawsuit. But they have filed for a hearing with the American Arbitration Association The American Arbitration Association (AAA) is a private enterprise in the business of arbitration, and one of several arbitration organizations that administers arbitration proceedings. The AAA also administers mediation and other forms of alternative dispute resolution. , Hellman said.

George Hayakawa, principal of a mechanical/electrical engineering consultancy in West L.A., reported last week that his attorney is preparing a lawsuit against Erickson.

Despite what some might describe as a lynch mob awaiting Erickson in L.A., the deposed architect revealed last week that he is already planning a comeback to the City of Angels.

"We're currently negotiating a merger with a larger company in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. ," he said. "We'll probably try it on a trial-marriage basis for about three months, however, before making any kind of official public announcement."

Erickson would not identify his prospective L.A. merger partner.

Erickson is the latest of many distinguished architects to suffer financial distress Financial distress

Events preceding and including bankruptcy, such as violation of loan contracts.
.

Frank Lloyd Wright Frank Lloyd Wright, Jr. (March 30,1890, Oak Park, Illinois – May 31, 1978, Santa Monica, California), commonly known as Lloyd Wright, was an American architect who did most of his work in Southern California. , widely considered an architectural genius, was plagued with money problems throughout his celebrated career. Philadelphia architect Louis I Louis I, king of Bavaria
Louis I, 1786–1868, king of Bavaria (1825–48), son and successor of King Maximilian I. He was chiefly responsible for transforming Munich into one of the handsomest capitals of Europe and for making it a center of the
. Khan, another internationally acclaimed designer, had an estate worth a negative $500,000 when he died in 1973.

"When you practice architecture as a very high art, as opposed to a business, it's very difficult not to go into debt," explained Jack MacAllister, a partner at the architectural firm An architectural firm is a company which employs one or more licensed architects and practices the profession of architecture. History
Architects (master builders) have existed since early in recorded history. The earliest recorded architects include Imhotep (c.
 of Anshen & Allen and a long-time friend of Erickson. "The attention architects of (Erickson's) caliber pay to detail becomes almost obsessive, and rarely do the fees cover that. It's a very sad thing to see."

Erickson was cruising at stratospheric strat·o·spher·ic  
adj.
1. Of, relating to, or characteristic of the stratosphere.

2. Extremely or unreasonably high: "money borrowed at today's stratospheric rates of interest" 
 heights during the sky's-the-limit 1980s, branching out from his Vancouver roots by opening a Toronto office and then, in 1982, a Los Angeles office.

In 1986, the American Institute of Architects The American Institute of Architects (AIA) is a professional organization for architects in the United States. Organized in 1857, the Institute conducts various activities and programs to support the profession and enhance its public image, including periodically awarding the AIA  named Erickson the recipient of its highest honor, the Gold Medal gold medal

traditional first prize. [Western Cult: Misc.]

See : Prize
, declaring him the top architect in the land.

His Robson Square and Courthouse, a sprawling government complex in Vancouver, was featured in Time magazine.

As recently as early 1989, Erickson's L.A. office was booming, too. Some 45 architects were pumping full-steam-ahead on plans and revisions for California Plaza, the San Diego Convention Center The San Diego Convention Center is the main convention center for the city of San Diego, California. It is located in the Marina district of downtown San Diego near the Gaslamp Quarter, at 111 West Harbor Drive. , two Metro Rail substations, Kaiser Permanente Kaiser Permanente is an integrated managed care organization, based in Oakland, California, founded in 1945 by industrialist Henry J. Kaiser and physician Sidney R. Garfield.  Medical Center in Baldwin Hills and a raft of West Coast university projects.

But then the recession hit; construction lending screeched to a halt; and Erickson, along with scores of other architects, fell on hard times.

The third phase of California Plaza, sometimes referred to as Rockefeller Center of the West, was delayed several times. Funding could not be found for the project's proposed $20 million-plus dance gallery.

Erickson finally had to shut down his Toronto office in late 1989, and now his L.A. office has suffered the same fate.

He was able to stave off closure of the L.A. office by telling local consultants that he had not yet been paid by his developer-clients. But at least one of those consulting firms, frustrated by Erickson's continued non-payment, took matters into its own hands.

"Erickson owed us money for consulting work we performed on two state-funded projects, one at UC Irvine and one at West Washington University," explained Hellman. "He kept telling us he hadn't been paid (by the universities). So we decided to call the universities ourselves, and they told us the funds had already been distributed (to Erickson)."

Erickson said his firm is still actively working on eight Southland projects.

"We have about half a dozen architects working on those projects in the L.A. area," Erickson said. "At the moment, some of them are working out of clients' offices, and some are working at home."

Ed Carfagno, who ran Erickson's L.A. office for about a year, was fired last October in a cost-cutting move.

Carfagno, who now works at Rossetti Associates/Architects Planners in Santa Monica, said the Persian Gulf War Persian Gulf War
 or Gulf War

(1990–91) International conflict triggered by Iraq's invasion of Kuwait in August 1990. Though justified by Iraqi leader Saddam Hussein on grounds that Kuwait was historically part of Iraq, the invasion was presumed to be
 may have been the crushing blow for Erickson's L.A. office.

"We were within an inch of starting work on a new headquarters building for the Kuwait Oil Ministry when Hussein invaded," Carfagno recounted. "The money was on the books, but that project never happened."

PHOTO : Designs for Cal Plaza in a dumpster outside Arthur Erickson's office: The best laid plans . . .
COPYRIGHT 1991 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:Arthur Erickson
Author:Stremfel, Michael
Publication:Los Angeles Business Journal
Date:Jun 24, 1991
Words:1070
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