SANTA MONICA, CA — Gov. Gavin Newsom has confirmed his administration is negotiating over a controversial proposal that appears to give a special path forward to a Frank Gehry-designed Santa Monica development owned by a longtime political donor and state appointee.
"It's a work in progress," Newsom told reporters Wednesday, according to CalMatters. "We are in the process of negotiating and discussing it with them."
Newsom made the comments when questioned about the last-minute proposal and his connection to developer Jeff Worthe, whose Ocean Avenue project appears to meet the unusually specific requirements contained in draft budget trailer bill language obtained by Patch this week.
Newsom did not directly answer questions about his relationship with Worthe or why the proposal is being pursued so late in the legislative session, CalMatters reported. He said he had spoken with one lawmaker representing the area and received "healthy feedback."
The governor's acknowledgment comes as CalMatters reports that a company affiliated with Worthe spent $270,000 between January and June lobbying the Legislature and Newsom's office on Assemblymember Rick Chavez Zbur's AB 1740 and other budget issues.
Lobbyist Bob Giroux reported receiving the payments from Catalina Media Development LLC. The state's current lobbying directory lists Catalina Media Development II LLC as a client of Lang Hansen Giroux & Kidane, where Giroux is a registered lobbyist.
CalMatters reported that Worthe did not respond to its request for comment, and Giroux could not immediately be reached. There is no evidence establishing that the lobbying payments resulted in the proposed Santa Monica language.
The developments come one day after Patch reported that Zbur and state Sen. Ben Allen both strongly oppose the proposal, which would create a special streamlined Coastal Act review process for qualifying Santa Monica developments if the city's Local Coastal Program is not completed by Jan. 1, 2028.
The draft contains a remarkably specific requirement that an eligible project include a museum honoring Gehry, complete with his archives, designs or models and written authorization from the Gehry Living Trust or his estate.
Those requirements appear to point toward Worthe Real Estate Group's Ocean Avenue project, a Gehry-designed mixed-use development that includes housing, a hotel and cultural space.
Opposition is now spreading beyond Santa Monica's representatives. At least seven Assemblymembers signed an Aug. 26 letter to Newsom, Senate President pro Tempore Monique Limón and Assembly Speaker Robert Rivas urging them to stop the trailer bill proposal.
The lawmakers said the measure is "designed to benefit very specific projects within Santa Monica" and would constrain the Coastal Commission's ability to require changes or additional mitigation while interfering with the city's ongoing effort to complete its Local Coastal Program.
The letter was signed by Zbur and Assemblymembers Damon Connolly, Dawn Addis, Greg Hart, Ash Kalra, Gail Pellerin and Chris Rogers. Zbur's office told Patch additional lawmakers may add their names.
Worthe and his wife have donated more than $274,000 to Newsom's campaigns and inaugural fund between 2018 and 2022, according to campaign-finance records reviewed by CalMatters. Newsom also appointed Worthe to the California Privacy Protection Agency board in 2023 and the California High-Speed Rail Authority board in 2025.
Zbur told Patch earlier this week that he believes a developer is driving the renewed proposal and said he is trying to stop the language before it reaches a vote. "I'm doing everything I can to get this killed," Zbur said.
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