Hooray for Hollywood!

May 4, 2010 by Tom Bowden

Every once in a while, the news contains a little gem that illustrates how peacefully and rationally people can get along when they respect each other’s property rights.

Here’s the background: A real estate developer in California had been making plans to erect houses on Cahuenga Peak, the barren hillside where the famous “HOLLYWOOD” sign was erected back in 1923 (ironically, to advertise a real estate development). The sign, of course, is a cultural icon, evoking the sunny and glamorous city where the film industry flourished. “The Hollywood sign represents the dreams of millions,” said Playboy magazine founder Hugh Hefner. “It’s a symbol. It is as the Eiffel Tower is to Paris. It represents the movies.”

Historical preservationists knew that the planned housing would spoil the wilderness setting that has long been part of the Hollywood sign’s appeal. But instead of demanding that a government agency block the development, the sign’s fans raised money privately and bought the surrounding land, all 138 acres of it, from the developer. It cost them a bundle: $12.5 million. But it was worth it to the donors—including Hefner, who gave the last $900,000 needed to push the fund-raising over the top. And the developer’s property rights were not violated in the process.

What a contrast with the way other historical preservationists have treated Steve Jobs, the CEO of Apple. Back in 2001, he sought permission to demolish his Woodside, California house—a rambling, ramshackle 1920s structure that was too big and expensive for his needs—and replace it with a smaller, modern home. Overnight, a preservationist pressure group sprang up and convinced local authorities to block the demolition. Almost a decade later, the project is still embroiled in litigation, while the house sits empty and decaying.

Let this consensual bargain involving the Hollywood sign be an inspiration to historical preservationists everywhere: Property rights are not your enemy but your friend. Ownership carries with it the exclusive right to decide how property is used and disposed of. When you own historically significant property, you can simply refuse to sell it to any developer who might demolish or despoil the history you cherish.

Image: WikiMedia Commons