ValleyVote Update for 3-1-01 |
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Here are a group of stories on how LA City operates the Greek Theater and banning Boy Scouts
Go ahead and sing the blues for the city of Los Angeles and the outrageous manipulation of the contract to run the Greek Theatre. Even under intense public pressure and incredible public scrutiny, City Hall can't bring itself to do the right thing.
So with the world watching, the city's Recreation and Parks Commission, without offering a sensible explanation, voted Wednesday to reopen the bidding process -- a move that squanders a golden opportunity and may end up getting the city less than what's already offered. As usual, the public interest was left out in the cold.
Obviously, the commission didn't want to close the process during an election season when so many people are running for office and so many chances exist to extract campaign donations for mayoral candidates, council candidates, city controller candidates and city attorney candidates. So many people with their hands out. So little time to make sure the public wins.
Now the Nederlander organization, which has held the lucrative contract for nearly three decades, can keep its sweetheart deal going with the city while the Parks Commission pretends to seek more bids and try to get the best deal for the public.
Perhaps it's lame-duck disease that keeps Mayor Richard Riordan from getting his act together to take charge of the situation or even to appoint a fifth commissioner to break the deadlock after Commission President Steve Soboroff resigned to focus on his mayoral campaign. City officials say the renewed bidding process could take at least six or seven months to complete, even if "fast-tracked."
That leaves open the question of who will operate the theater once the Nederlander contract expires Oct. 31, and when much-needed improvements to the theater will be completed. The House of Blues projected it would be able to return about $23.5 million to the city over the life of the 10-year contract, vs. the $18.5 million payback Nederlander anticipates.
House of Blues also proposed making about $11.1 million worth of capital improvements to the theater, compared with the $5.5 million Nederlander offered.
Maybe the mayor is waiting for a federal consent decree to run the Greek Theatre.
At this rate, one thing is certain: Somebody's going to sue the city. The taxpayers will be on the hook for millions in settlements instead of reaping millions in payments. And theatergoers will have to suffer the consequences of a city that can't get its act together. What a lousy way to run a city
By Beth Barrett Staff Writer
Rejecting two bids to operate the Greek Theatre, the Los Angeles Recreation and Parks Commission on Wednesday walked away from up to $11.1 million in capital improvements and $1 million more in city revenues annually with no guarantee the Griffith Park venue will have an operator after Oct. 31.
The 3-1 vote to reject the bids of longtime operator Nederlander-Greek Inc. and competitor House of Blues Concerts Inc. essentially erased a three-year selection process. House of Blues had been recommended by the staff of the Recreation and Parks Department, an independent panel and two consultants on the strength of its bid that guaranteed twice as much in capital improvements as Nederlander offered.
"I'm disappointed," said Ellen Oppenheim, general manager of the department. "This means uncertainties, delays and a short-term reduction of revenues." Oppenheim estimated it would take six to seven months under the best of conditions to return a new bid recommendation to the commission, which by that time is likely to consist of new members appointed by Mayor Richard Riordan's successor.
Other sources, however, expect Riordan to push the process more rapidly so it might be back before the commission within about 45 days. "This is too important of an issue to languish," said Ben Austin, Riordan's spokesman. "It will be resolved by the end of his term."
Riordan, whose term ends July 1, is expected to appoint a fifth member of the Recreation and Parks Commission soon to replace Steve Soboroff, who resigned to run for mayor. Soboroff had recused himself from voting, which resulted in a 2-2 deadlock.
Robert Nizich, a commissioner from San Pedro and a City Council candidate, provided the deciding vote to scuttle both bids, after his earlier motion in favor of House of Blues Concerts failed. Nizich said he was swayed by commission Vice President LeRoy Chase and Commissioner Maria Elena Durazo, a local union leader, both of whom questioned House of Blues Concerts' financial stability, despite its $11.1 million bank letter of credit.
"Two commissioners had concerns," said Nizich, who was cleared to vote on the matter in January after a Nederlander concessionaire that had contributed $500 to his campaign withdrew from the bid package. "I want it to be a fair and above-board playing field."
Chase and Durazo repeated those concerns Wednesday, adding the city might get better terms with a second competition.
But Commissioner Lisa Specht, who voted against rebidding the Greek, said the city was giving away a sure deal worth millions, with no assurance that new bids would be nearly as lucrative, nor that House of Blues Concerts would participate in a second round of bidding. "How will we feel in six months when we get a bid that's $6 million light in terms of capital and $5 million light on rent, or less?" Specht said. "How will we feel about the way we have served the people of the city of Los Angeles?"
House of Blues Concerts attorney George Mihlsten immediately threatened litigation if the city attempts to extend Nederlander's contract on an interim basis. "They have no legal right to extend, and if they attempt to do that, we'll take them to court," Mihlsten said. "We'll protect the rights of the citizens, which LeRoy (Chase) has given away."
Nederlander attorney Adam Burke, with the firm of Iverson Yoakum Papiano & Hatch, said the firm would have liked to win outright. "But if there are concerns it's best for everyone to resolve them, and there were real problems," Burke said.
Nederlander representatives also urged the commission to involve Chief Administrative Analyst Ron Deaton, the council's top adviser, in the second-round bid analysis.
The City Council, led by council President John Ferraro, tried to award Nederlander a no-bid, five-year extension on Dec. 8, 1999, but was forced to rescind it in the face of a public referendum. Ferraro is a friend of Neil Papiano, who has a financial interest in Nederlander. Ferraro had no comment Wednesday, a spokesperson said.
Both firms have used their political connections in seeking the bid, including lobbyists who have run council members' campaigns.
By Beth Barrett Staff Writer
The fate of the historic Greek Theatre remained uncertain Wednesday when Recreation and Park commissioners again deadlocked 2-2 on awarding a 10-year contract that could upgrade the facility and add about $1 million to city revenue.
Short of a change of mind by a current commissioner, the deadlock sets the stage for Mayor Richard Riordan to appoint a successor to commission President Steve Soboroff who formally resigned Wednesday to pursue his mayoral campaign. Soboroff previously had declared a conflict over the Griffith Park theater.
In his final comments to the commission before an audience of more than 100, Soboroff said he'll urge Riordan to fill his position immediately. "I will ask him to speed up the replacement, and not to rebid the project," Soboroff said.
The mayor, said spokesman Ben Austin, will take steps to break the impasse, including the appointment of a new commissioner in a timely fashion. "Inaction is unacceptable in this situation," Austin said. "The mayor intends to move quickly to resolve the situations."
Commissioners Lisa Specht and Robert Nizich, a City Council candidate from the Harbor area, voted for the staff-recommended House of Blues Concerts Inc.; Vice President Leroy Chase and Maria Elena Durazo, a local union leader, voted for longtime operator Nederlander-Greek Inc.
Staff members, an independent panel and outside financial experts recommended House of Blues Concerts largely on guarantees of $11.1 million in capital improvements to the theater, or more than double the $5.5 million guaranteed by Nederlander. Both groups have offered about $1.5 million in rent each year, triple what Nederlander has paid.
Nederlander attorneys' challenge of the House of Blues Concerts' financial stability was persuasive, Chase said. He remained unswayed by the city's expert, Michael Willoughby of Business Valuation Services, who said House of Blues Concerts' financial package -- including an $11.1 million Bank of America letter of credit -- overall was superior.
Department of Parks and Recreation General Manager Ellen Oppenheim also said she continues to support House of Blues Concerts.
"There was tremendous thought, time and energy put into the recommendation by the panel and by the department," Oppenheim said. "There's no change in that recommendation." Commissioners said rebidding the contract would put in jeopardy millions of dollars in additional rent to the city, as well as capital improvements for the 2002 season.
City Council members, who were forced a year ago by the threat of a voter referendum to rescind a five-year, no-bid extension to Nederlander among charges it was a sweetheart deal, said the council again might have to become involved. Nederlander's current contract expires Oct. 30.
THE city of Los Angeles' Recreation and Parks Commission will choose today between two competing bids to run the Greek Theatre for the next decade. Both bids are for twice what was offered a year ago when the Daily News exposed -- and helped stop -- the sweetheart deal that council President John Ferraro was pushing through for some longtime pals.
The first bid is an $18 million offer from Nederlander-Greek Inc., which has been operating the venue for the past 25 years under very favorable terms, guaranteeing the city a paltry $50,000 a year. Payments have actually averaged more like $500,000, which is about 40 percent of what they should have been if bidding were competitive.
The second bid comes from House of Blues, Inc., which offers $5 million more, plus extensive renovations at the site.
House of Blues might have a better offer, but Nederlander has the support of the ailing Ferraro, who's never been shy about helping his friends. Nederlander's people question whether House of Blues has the financial wherewithal to make good on its offer and whether it will put its interest in the Universal Amphitheater ahead of the Greek.
House of Blues, the No. 2 concert venue operator behind SFX, which will be working with the Nederlander Group, offers evidence of its solvency, promises to put a new face on the Greek and commits a lot more money.
Anywhere else, when things are equal, money talks. But this is City Hall and nothing is ever quite what it seems.
For one, commission president and mayoral candidate Steve Soboroff, who should have resigned months ago, has been forced to recuse himself from the vote due to a conflict of interest. Should the remaining four members deadlock, Nederlander's current, bargain-basement contract will continue -- in perpetuity.
That calamitous outcome shouldn't even be a possibility. But Ferraro has a way of getting what he wants and the new City Charter takes the City Council out of play so it can't do much about the deal if its members had any integrity, collectively speaking.
So now it's up to three out of the four remaining commissioners to do the right thing.
It's asking a lot of anyone at City Hall to choose the public interest over the special interests, but every once in a while, the power brokers and influence peddlers surprise us. When they do, it's because they are afraid the voters will wake up and sweep City Hall clean. Perhaps their fear of your anger will carry this day.
Recently, I was talking to a longtime friend of mine that was appointed to the rank of sergeant for the Los Angeles Police Department. During the course of our conversation it was mentioned to me that the Explorer Scouts had no insurance. I was shocked at that statement as the city usually provided for that.
I was informed that Jackie Goldberg got on her high horse again and denounced the Boy Scouts (Explorer Scouts are a division of the Boy Scouts of America) because they don't allow homosexuals as Scout leaders.
Now if the Supreme Court can allow that, then why does the city of Los Angeles have to get rid of the Explorer Scout program because Goldberg doesn't go along with the Supreme Court?
It really got me angry. I come from a family of Los Angeles police officers, and I know firsthand as to how happy it made an officer when he was capable of reaching a young adult and showed him or her the right way.
Why would Jackie Goldberg want to take that away from an officer and the child who was helped in leading to the path of good instead of being a gang member and being gunned down before they are 18?
Dan L. Lestelle Reserve Los Angeles Police Officer Sunland
Did I miss something? To my way of thinking, the Boy Scout ban was the most controversial City Council vote in years. It is my sincere hope that none of the 11 council members who supported that vote ever be elected again. Meanwhile, Joel Wachs, who I would like to support as mayor, was conveniently absent when that vote was taken. How does he stand on this issue? Is he with the people, or the politically correct? Why has the media given him a free ride just because he had the good sense to avoid the issue?
If the Valley is doomed to life in Los Angeles, it is time we found politicians sympathetic to our ideas. We cannot make these choices in the dark.
Michael Guetzow Woodland Hills
I've got a huge surprise for Jackie Goldberg. The Boy Scouts of America has always been an organization tied to religion. If, as she claims, she's been affiliated with the Scouts for 35 years, she should have figured that out long before now.
Now she's shocked that the Scouts actually went "all the way to the U.S. Supreme Court" to enforce their right to remain an organization with religious ties. Of course, she's not impressed by the fact that they won that right. Now, as her last damaging hurrah to the city before she moves on to destroy the state, she wants to toss the Scouts out of the city for doing what they have the legal right to do.
Jerry Schwartz Granada Hills
Do you suppose the City Council might reconsider severing ties with the Boy Scouts if the phrase "Now we don our gay apparel" was added to the beginning of the Scout oath?
Harry Moak Simi Valley
So our noble City Council has caved in to Jackie Goldberg and gone on the attack against the Boy Scouts. This politically correct action strikes at the heart of one of the organizations that have done the most to teach ethics and morals to generations of young men, a task which has been largely abandoned by a great many parents and schools. This move will also be counterproductive for its intended purpose.
Goldberg states that "I do not do this with great joy." Frankly, Goldberg, I do not believe you.
J.W. Bott West Hills
I'm very troubled when I read that the Boy Scouts of America "discriminate," because they do not. The United States Supreme Court declared that the Boy Scouts do not discriminate. They also affirmed that the Boy Scouts have every right to set moral standards of conduct for their leadership.
Among other things, this means that Scout leaders cannot openly promote their sexual lifestyles, whether they are heterosexual or homosexual. Goldberg and her City Council (they're not mine) have discriminated against an American institution. How long are we going to tolerate the arrogant actions of this immoral city government?
B. Thorpe Sun Valley
First we relinquish our police to federal control and now we tell the Boy Scouts to stay out of our parks. Did it ever occur to the likes of Jackie Goldberg that the intolerance she wants to correct is being done with gross intolerance on her part? This is not about the Boy Scouts' alleged closed minds it is about a nominal minority group of people who feel that their elitist agenda should be forced on all of us.
think it is time for secession of the Valley as council members are so far out of touch with the mainstream citizenry only an act of divine intervention could probably wake them up. And though the angels lend us their name for our city, the probability of them coming to the hell the council is turning this into is remote.
John K. Taylor Woodland Hills
By Rick Orlov Staff Writer
Questioning the role of the Boy Scouts of America in city programs, a Los Angeles City Council panel moved closer on Tuesday to recommending that the city sever all ties with the organization.
Councilwoman Jackie Goldberg said she does not believe the city should be in the position of helping the group because of its policies on religion and sexual orientation, which have been upheld by the U.S. Supreme Court.
"This is an organization that fought all the way to the United States Supreme Court for its right to discriminate," said Goldberg, who is a lesbian. "They thought there would be no consequences. Well, there has to be.
"I take no joy in this. I helped bring Scouting programs into school and still believe they do great good for many young people. I just don't think we should support a group that discriminates based on someone not believing in God or having a different sexual orientation."
Goldberg, who chairs the City Council's Personnel Committee, urged that the city's Recreation and Parks Department no longer provide free meeting rooms for Scout troops.
Beyond that, however, she recommended that the Los Angeles Police Department sever its ties with a subsidiary of the Boy Scouts and develop its own program for its estimated 200 Explorers.
The Explorer program is run through the Learning for Life program of the Boy Scouts and does not engage in discrimination, officials said. But Goldberg said she was concerned about a $7 fee paid by each Explorer for insurance and whether any of that money went to the Boy Scouts.
Officials with the Boy Scouts did not return telephone calls Tuesday. Goldberg was skeptical the Boy Scouts would change their policies.
"If you can get the Boy Scouts to drop its discrimination, I would have no problem with continuing our relationship. I just don't think it will happen when an organization decides to go all the way to the Supreme Court to defend itself," she said.
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