The scaled-back LA Times managed to marshal dozens of reporters, photographers and support staff for its extensive and often clever coverage of the Carmageddon non-story but has virtually ignored the extraordinary phone hacking scandal in Britain involving Rupert Murdoch and his News Corp. with its deep connections to Los Angeles.
Six months later, AEG Would it surprise Even more damaging to “With little Note that the project was built by a subsidiary so AEG and Anschutz have no
“The company that wants to build an NFL stadium in downtown Los
Angeles announced a milestone in mid-February: It had sold the first unit in
its nearby luxury condo project that towers above the skyline.
“Anschutz Entertainment Group neglected to acknowledge, however, that it
had bought the Ritz-Carlton-branded condo unit itself.”
has managed to sell 32 of the 224 condo units with a top price of nearly $6
million without mentioning what property records show: Buyers included Anschutz
himself, CEO Tim Leiweke and four other AEG executives, two of whom needed
financing from their employer.
anyone if Jan Perry, AEG’s own Councilwoman, or the AEG-sponsored Mayor Antonio
Villaraigosa soon showed up on the buyers’ list?
AEG’s myths about the success of LA Live is the disclosure that the company has
stiffed contractors who worked on the project.
revenue from selling condos, the company has been hit with stacks of unpaid
bills, county records show. In April and May alone, contractors filed at least
$7.4 million in mechanics’ liens against Olympic and Georgia Partners LLC, the
AEG subsidiary set up to develop the property. They detail unpaid plumbing
work, flooring and countertop installations, and other projects,” the
Associated Press reported.
liability. They plan the same strategy with the NFL stadium using a dummy Delaware
company as the owner so if it’s a bust, the losers will be the lenders and the
city which plans to borrow $300 million on top of the $450 million still owed
for the Convention Center.
It’s hard to believe
the City Council is prepared to hold a single public hearing on July 29 and
then sign off on a Memorandum of Understanding (MOU) with AEG by mid-August
without an environmental impact report, without a full study of costs and
benefits from a credible source, without making sure the city gets a significant
share of all revenue and guarantees against losses, without answers to the
dozens of questions that have so far gone unanswered.
The claim the MOU is
non-binding is specious. Time and again, developers, even small ones, have
gotten their way on the basis of having spent money on their projects after
agreeing to an MOU with the city and thus are entitled to go forward.
Does anyone think an
outfit with as much clout at City Hall as AEG won’t be able get the city to
give it terms in the MOU based on inadequate information and public
debate?
The press has a
responsibility to make sure that the public gets all the facts, like noting that
PKF Consulting which did the AEG study did the so-called
“independent” study for the city touting the economic benefits that
would come from giving the Wilshire Grand Hotel developer a massive bed tax
subsidy and huge digital billboard rights. The firm’s website describes it as a
specialist in advising hotel developments for hotel owners and operators,
financial institutions, real estate developers, investors, and governmental
agencies, which ought to tell you something about its objectivity.
Why does the FBI not investigate AEG and Jan Perry. Their deal will cost the city millions, more harmful than a few thousands collected by corrupt Building & Safety employees.
Of course there were allegations of Conflict of Interest related to the Grand Avenue Project in 2009: http://www.laweekly.com/2009-04-16/news/jan-perry-39-s-grand-avenue-conflict/
And Jan Perry did an improper Recusal on 1601 N Vine Street (Katersky) in the HCED Committee (Wesson) when she stated “out of an abundance of caution I will recuse myself” and then followed “I am extremely supportive of the project.” That statement just blew her recusal right out of the water.
The taxpayer/voters/constituents are paying for all of this as services are reduced. Now the City is contemplating changing liability of sidewalks to the property owner even though the City has right of way and easements and this has been in place for 100 years.
The Stadium Deal is really a Bailout Deal for AEG, just as the HUD Loans for CIM Group at the Kodak and Mid Town Crossing.
And AEG will sue LA if they don’t go through the deal since they will say that Los Angeles negotiated in bad faith. Especially for all of the money AEG invested in this negotiation.
And we won’t be able to analyze the numbers and the guarantee until after the City Council and Mayor approves it.
I can’t believe someone asked why FBI doesn’t investigate Perry/AEG. It shows the knowledge and maturity level of the people who read this blog. Ron, you whine about all this stuff. You aren’t gonna change a thing and you are become more whiny and less effective. You are retired. Why not move out of the city. It seems to be destroying you.
To Anonymous on July 20, 2011 12:19 PM,
Before you criticize Ron, look in the mirror.
Why don’t you submit evidence to the FBI?
The problem is you, not Ron Kaye. His has done his job and then some by exposing this corruption.
You are the whiner, not Ron.
The FBI has an office in West LA (Westwood next to the 405 and VA Complex) that investigates corruption.
So get off of your ass and take articles and any other items that you have been reading and demand an investigation.
BOYCOTT AEG PLAIN AND SIMPLE. Don’t go to their restaurants, don’t go to games stay the hell away from that area. Send this story all over the story and demand the media do their job. I’m surpurised David Z is acting as the pr guy for AEG. He’s usually really balanced but not on this one. And yes to the Mayor’s staffers who seem to want to post and go after Ron, why don’t you just go to another site you lame brain.
At least, Ron has educated the general public about City Hall corruption, which has never been covered elsewhere. So 12.19, may be you would like to enlighten us about the corruption Ron has exposed. If you don’t like the exposure, you have the choice of reading the major dailies who don’t care if this city goes into bankruptcy thanks to deals such as AEG. But I think, you were talking about the optimism and hope the commenters on this blog hold about corruption being punished. If our FBI is as corrupt as you believe it to be, then society as a whole pays the price. So be it. Ignorance is bliss & let’s wring our hands & give up.
And to those of you disgruntled City Employees, you can seek Whistle Blower protection status and step up to the plate with information.
You can also submit information to anyone, including Ron Kaye (his email address) is listed on the right side of this webpage as ron@ronkayela.com
James McCuen, not being a city employee, you don’t understand how corrupt the city is. I took a corruption case to the Personnel Department & all the way to the Ethics Commission. Never again. They always rule in favor of the Department and the employee becomes the pariah.
Some of you think Ron is a complainer. Why are you complaining yourselves about Ron and rest of us who are tryiing to fix our problems?
Sorry, but I can only beleive that you are one of the ones we are complaining about, People connected to the city becausse they work here were never hired to take us for everything you can get. Shame on you.
City employees are vested in getting all the money they can make off the taxpayers. The city family does’nt want to be exposed. They all make out handsomely. This is why they keep coming up with inventive ways to fine and tax you. The General Fund is a gold mine for them and them only. Hardly any of that collected money makes it out of City Hall. The biggest rip-off artists are the LAPD & LAFD.
To July 20, 2011 1:42 PM,
I am sad to hear that and empathize with you who tried to do the right thing only to get punished.
Given that the only hope would be for an external investigation such as that by the FBI hoping to turn lower level employees to get the “big fish.”
However, as we have witnessed in Los Angeles with Development projects and in Private Industry, the “little guy” takes the fall and the crooks at the top get away with their open corruption.
At least in Chicago with all of its known corruption, you will see an elected official or high-level executive indicted.
And just to revise my “Whistle Blower” protection comment, those of you “in the know” can report things anonymously – At the very least to Ron Kaye for his exposure or to an outside source.
As “July 20, 2011 1:42 PM” pointed out the City Ethics Commission made of Mayoral appointees is a joke. And the LA County DA is overwhelmed and seems content with going after small Cities such as Bell (which was deserved) and ignore the largest City in California, Los Angeles.
“City Council President Eric Garcetti has sent out a list of conditions he would like to see met before AEG’s proposal for the NFL stadium to be known as Farmers Field (and construction of a replacement Convention Center hall) is approved”.
To those who think Garcetti is doing something credible and is on the people’s side, read this paragraph again. APPROVAL is a given. Why even bother fooling anyone Garcetti? Conditions are worth their negotiating power only when the other party does not know that their project will be approved. His intervention is as worthless as him.
Ron Kaye!!!! You rock. We’ll give you the damn Rams back!!!
The company’s proposal calls for the city to issue up to $300 million in bonds to finance the demolition and relocation of the convention center hall the stadium would displace.
“AEG officials have said they would ask the city to let it use stadium ground lease payments, new property tax revenue and money from its convention center signage rights to repay those bonds.”
Key words: Let it USE. I’m so sorry daddy but you have to pay the Whore.
so if it’s a bust, the losers will be the lenders and the city which plans to borrow $300 million on top of the $450 million still owed for the Convention Center.
If AEG want the Convention Center that’s worth 450 million that a debt the City can capitalize on as a precursor to potential losses
Let AEG buy and pay the fair value of the Convention Center, which ofcourse would include assumption of debt. No bond issue & their stadium, if approved to pay taxes to the city. I would call that the bottom negotiating step.
Our City Council, every one of them, are self-serving con-artists in partnership with AEG. Shameful.
We do not have any detailed information on which to make a sound and informed decision. And until that time, no deal. Or maybe this deal would look good on the ballot.
Yes, Ron, it would be so much better for Los Angeles if we just went back to the way downtown was before Staples and La Live was built.
Good times, bro.
We should do that.
You guys are right.
La Live and Staples and the new downtown obviously sucks.
We get it.
You guys are right.
So why should we want to add something even more spectacular to it?
You guys are right.
Silly on us, the rest of us residents who actually love going to our new wonderful downtown.
We are so dumb for loving the progress, the dreams and the vision.
We should side with you, someone obviously against anything and everything.
Good job, Ron. Your vision is just…..awesome.
So typical that subcontractors have to file $7.4M in mechanics liens, to try and just maybe, someday, with luck, collect from these wealthy developers…that alone is the RED FLAG, that says LA taxpayers will follow suit.
Let them solicit venture capital.
Absolutely NO DEAL !
To July 20, 2011 10:07 PM,
You typify the false choices – Either AEG’s plans or nothing.
Another choice would be “NO BUILD” on the Football stadium in Downtown.
Selecting “NO BUILD” or “build it without anything from the City of LA Taxpayers (including land and bonds),” also retains a very nice downtown.
You still have all the “wonderful” things, tall buildings, historical buildings without more signage, traffic/gridlock, and further puting the City in debt and with risk with subsidizing the repayment of bonds with sales tax revenue just as Mid Town Crossing.
I have a better “plan” for AEG and Perry: Offer any Angelino who owns a home with equity in it
the full cash value of the equity (up to $100,000) if they’ll just sell their damn house AND LEAVE L.A. PERMANENTLY! The homeowner is the VICTIM of AEG and Perry’s CRA (not even counting the CD9 homeless and renters) as they won’t let these homeowners VOTE AND CHOSE THEIR OWN REPRESENTATION! AEG buys and owns that. So, a VALUE on denying the ‘one person one vote’ rule of law needs to be set…that would do it. Because EVERYONE I speak to WANTS THE HELL OUT OF HERE, BUT CAN’T SELL AND GET $$$ TO DO THE MOVE! The AEG/Perry con artists BROKE THE CITY, SO LIKE A STORE” YOU BREAK IT, YOU OWN IT, YOU PAY FOR IT.” Time for L.A.’s real victims TO GET THE MEANS TO GET THE HELL OUT OF THIS NO WIN SITUATION CALLED “THE CITY OF ANGELES.”
But all these posts show AEG and “Hamburger” Perry one SCARRY THOUGHT—YOU are GETTING IT!
If they want this deal so badly then have Anschultz GUARANTEE THE BOND. AEG and Liewke said he doesn’t want to. But they want the City to make sure the payment on the bond is met and if not we get sucked under. HELLL NOO!!! Everyone needs to email their council idiot and tell them this is a NO DEAL. The fact AEG and the CITY aren’t making the reports available to the public or anyone else like a unbias person to review is a huge red flag.
Each one of the 95 Neighborhood Councils should have at least 1 rep at the City Council meeting when they decide on signing the MOU for AEG. I noticed that when AEG goes to council there are few people there. Its about time all you NC reps who are supposed be rep’ing the people of Los Angeles get down to City Hall and represent the people against this piece of AEG corrupt deal. I’m shocked the media simply prints and says what AEG puts out without questioning any of it. Why isn’t another entitity not connected to the city or this deal reviewing for the People?
To July 21, 2011 6:35 AM,
During last week’s council session, Gerry Miller the CLA specifically mentioned that one of the issues that the City is negotiating is “guarantees.”
I don’t trust a single word from anyone whose $300,000+ paycheck comes from the City Council. No different than AEG’s consultant promising economic riches to the city.
The big money to stop this deal between AEG and the City of LA is the competing field, Grand Crossing. That is why Jan Perry was so concerned about “requiring” the Brown Act instead of attempting to follow it.
One advantage Grand Crossing has is that the State legislature put in a override of Environmental (CEQA) requirements.
Now Krekorian and others said that he wants a full Environmental review. Let’s see how that plays out.
Am I wrong, or are they proposing to build the new West Hall directly on top of Pico Blvd?
If that were the case, the Hall would be extremely vulnerable to a terror attack.
What does Homeland Security say about this plan? Maybe we should ask them!
To July 21, 2011 3:49 PM,
I’m not following you on your Security issue. Is about the Convention Center being vulnerable or the Proposed Stadium (Farmer’s field)?
And why specifically would it be vulnerable?