Category Archives: Business Improvement Districts

Many New Documents: CCEA Emails, Venice Beach BID Emails, Carol Schatz Freakout, Chua v. City of LA

A rare photograph of MK.org secret headquarters and Fortress of Solitude, located in an undisclosed location in the heart of North Central Hollywood.
A rare photograph of MK.org secret headquarters and Fortress of Solitude, located in an undisclosed location in the heart of North Central Hollywood.
Happy Thanksgiving, friends! Today I have an unanalyzed document dump for you. There’s a lot of fabulous material here, and I’ll be writing about much of it over1 the next few days. For now, though, there’s just a bare inventory, which you can find directly after the break.
Continue reading Many New Documents: CCEA Emails, Venice Beach BID Emails, Carol Schatz Freakout, Chua v. City of LA

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Donald Trump’s Election Inspires City of Los Angeles To Finally Move Forward With Long-Delayed Street Vending Legalization Despite BIDs’ Irrational Opposition. Street Vendors To Pay BIDs An Operations Fee. BIDs To Get Effective Veto Power Over Vending Within Their Boundaries.

Aren't you glad I didn't put a picture of freaking Donald Trump here?!  Not that Joe Buscaino is less ethically challenged, but at least his hair is prettier...
Aren’t you glad I didn’t put a picture of freaking Donald Trump here?! Not that Joe Buscaino is less ethically challenged, but at least his hair is prettier…
I know the headline sounds like a joke, but it’s not. The L.A. Times reported on it this morning, although their article, as is their wont, did not mention business improvement districts at all, and, at least briefly, I thought they were kidding. But this is the Los Angeles City Council we’re talking about, and they were not. Huizar and Price first made a motion to legalize street vending in November 2013, three years ago, and, over the last three years we have been subjected to an endless stream of hysterical, mendacious, probably illegal, lobbying by the BIDs and their ideological allies against the very idea. They even managed to get the Times itself to accept their misbegotten point of view as somehow legitimate. In response to this outpouring of unregistered lobbying behavior,2 the City Council essentially responded by ignoring the issue,3 as you can see from the council file, which has no official City action since October 2015, until yesterday, when Curren Price and Joe Buscaino slapped this little number on the table. It’s a letter, which does indeed refer, albeit obliquely, to Darth Cheeto himself:4
Despite the undeniable division and polarization that exists in our country right now, there is one common characteristic that is shared by Americans of every gender, race, ethnicity, religion, sexual orientation, gender identity, immigration status and political party: our entrepreneurial spirit. We value the notion that everyone deserves the opportunity to start a small business, on a level playing field, with failure or success determined by our own talent, hard work, and perseverance. At an early age. we teach our children concepts like overhead, profit, and loss by encouraging them to sell Girl Scout Cookies, candy bars, and lemonade. Yet, if they sell any of those on a public sidewalk in Los Angeles, they are committing a crime of the same seriousness as drunk driving.

They go on to urge the Council to go ahead and legalize street vending because otherwise Trump has already won, and I can’t say that I disagree:

Recent talks about changes to our nation’s immigration policy, including threats to deport millions of undocumented immigrants – starting with those with criminal records – has created significant fear amongst our immigrant communities. Continuing to impose criminal misdemeanor penalties for vending disproportionately affects, and unfairly punishes, undocumented immigrants, and could potentially put them at risk for deportation.

Furthermore, Buscaino and Price claim that:

The core question the Council must answer is whether sidewalk vending poses a threat so grave to public health, safety, and welfare that it is worth continuing to expend limited police and prosecutorial resources enforcing a citywide ban.

Which is also reasonable, but read a little deeper in the letter and you can see the fingerprints of the BIDs all over the damned thing. And, as usual, their input makes a lie of the whole thing. The BIDs’ version, which is the version that will be passed, is going to require the same amount if not more of our “limited police and prosecutorial resources” to enforce.
Continue reading Donald Trump’s Election Inspires City of Los Angeles To Finally Move Forward With Long-Delayed Street Vending Legalization Despite BIDs’ Irrational Opposition. Street Vendors To Pay BIDs An Operations Fee. BIDs To Get Effective Veto Power Over Vending Within Their Boundaries.

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Kerry Morrison’s Ruinously Expensive Obsessions With Homeless Outreach And Guns Cause Severe Cutbacks In BID Patrol Service Even As Expenditures Go Up, Up, Up — HPOA/CHC Books Cooked In 2015 To Obscure This Trend — Time For An Intervention!

Kerry Morrison at the Central Hollywood Coalition board meeting on November 8, 2016.
Kerry Morrison at the Central Hollywood Coalition board meeting on November 8, 2016.
Watch and listen here5 to an interminable discussion at last Tuesday’s meeting of the Board of Directors of the Central Hollywood Coalition6 about how to pay the increasing cost of the armed BID Patrol while, at the same time, maintaining or expanding dedicated “homeless outreach” services, also provided by Andrews International. In particular, staff is asking the board to approve a 5% increase in the A/I budget for next year to cover salary increases and so on.

Here are some numbers. A/I pays its BID Patrol officers $31.50 an hour.7 Almost certainly the BID is paying A/I significantly more than that. Also note that base pay for A/I unarmed officers is $13 per hour. In other words, armed officers cost about 2.5 times as much as unarmed officers. If A/I’s markup to the BID is a percentage of its HR costs then this ratio will hold constant regardless of what the BID is actually paying.8 Now, most BIDs in the City of Los Angeles do not have armed security. In fact, as far as I can tell, the two HPOA BIDs run by Kerry Morrison are the only BIDs that do.9 We have written before about Kerry Morrison’s disturbing and utterly disproportionate love of guns, and that’s probably enough to explain her insistence on armed security despite the high cost.10 And the cost is very high. According to the Sunset & Vine BID’s 2015 independent audit, the BID paid $805,608 for security out of total annual expenditures of $1,542,735.11

And what do they get for that? It’s explained in this exchange from last week‘s meeting.12 It’s essentially four dedicated officers per fourteen hour day, backed up by officers from the Hollywood Entertainment District, with slightly less on Sundays. Assuming 8 hour days, and not adjusting for Sundays, this is 11,648 hours per year.13 Dividing this into the 2015 security expenditure yields a rate of $69.16. The 2013 contract between A/I and the HPOA gives the markup rate as 82% for BID patrol officers and 55% for supervisors, so this is roughly consistent with a base hourly rate of $31.50.14 Continue reading Kerry Morrison’s Ruinously Expensive Obsessions With Homeless Outreach And Guns Cause Severe Cutbacks In BID Patrol Service Even As Expenditures Go Up, Up, Up — HPOA/CHC Books Cooked In 2015 To Obscure This Trend — Time For An Intervention!

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City Ethics Commission Declines to File Civil Action Against Sokol and Lambert For Campaign Contributions

Sokol, Lambert, Bonin, others.
Sokol, Lambert, Bonin, others.
Perhaps you recall that Venice Beach BID proponents Carl Lambert and Mark Sokol famously made a lot of campaign contributions to various City politicians, many of whom were responsible for voting on the BID. It’s plausible that this violates LA City ethics laws, and my colleages and I filed a complaint with the Ethics Commission on the matter. The law gives the commission 40 days to decide if they will proceed. Yesterday, 38 days after the complaint was filed, the Ethics Commission announced that it did not intend to pursue a civil action. So that happened. You can read their email after the break, but it doesn’t, and this seems proper, say much.
Continue reading City Ethics Commission Declines to File Civil Action Against Sokol and Lambert For Campaign Contributions

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Venice Beach BID Hearing Roundup: Bonin Jettisons Deference, Implicatively Slams Hollywood, Downtown BIDs: “There’ve Been Good BIDs And There’ve Been Bad BIDs” And Hollywood? And Downtown? Not Good BIDs. Wesson/Englander Totalitarian Style Almost Causes Third Do-Over

A battle-weary Mike Bonin graciously acknowledges his ultimate victory this afternoon at the Venice Beach BID hearing.
A battle-weary Mike Bonin graciously acknowledges his ultimate victory this afternoon at the Venice Beach BID hearing.
Quick summary: Venice Beach BID hearing in August was messed up due to habitual arrogance of City Council. Heroic civil rights lawyer calls bullshit. City Attorney sees potential liability for City and advises a do-over. A bunch of other shenanigans, too many to name-check at this point, ensue. This morning the do-over hearing was held. You can watch it here on YouTube.

So everyone made their comments, and they weren’t all that different from the first time, although Mike Bonin managed not to lose his shit and compare the BID opposition to Trump supporters.15 But nevertheless, there were a few surprising moments. Recall that the first hearing was invalidated because third-smartest-guy-in-the-room Herb Wesson cut off public comment too early. So this time, Mitch Englander, who is Council president pro tem,16 after all the speaker cards had been called, announced to the world at large:17

Mitch Englander on the dais getting whispered advice from a deputy city attorney.  What does it say about our City that almost 15% of our Councilmembers are named Mitch?  Nothing good, friends, nothing good.
Mitch Englander on the dais getting whispered advice from a deputy city attorney. What does it say about our City that almost 15% of our Councilmembers are named Mitch? Nothing good, friends, nothing good.

I wanna be extra careful on this one given the problems with the last public hearing. Is there anybody here who filled out a card or tried to speak or
[unintelligible] has not been heard yet?

And then the other one, Wesson or Englander, seeing that sanest of habitual gadflies, Eric Preven, indicating that he would like to speak, announced:

Ah, Mr. Preven, you actually spoke to the Council already for your maximum of three minutes per the Council rules.

And Preven said no. And everyone in the room wondered whether they were really going to take the risk of messing everything up for a second time just to prevent Eric Preven from speaking for one more minute after we’d all been there almost an hour already. Well, the Deputy City Attorney told the two prezzes to CTFO, and they folded, for Christ’s sake, and let Eric Preven speak.

But far more interesting than that was Bonin’s victory speech.18 In particular, maybe since he was feeling a little conciliatory, he said:
Continue reading Venice Beach BID Hearing Roundup: Bonin Jettisons Deference, Implicatively Slams Hollywood, Downtown BIDs: “There’ve Been Good BIDs And There’ve Been Bad BIDs” And Hollywood? And Downtown? Not Good BIDs. Wesson/Englander Totalitarian Style Almost Causes Third Do-Over

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Central Avenue Historic BID May Provide Insight Into The Process By Which BIDs Evolved From Whatever They Were Originally Conceived To Be Into Weaponized Shock Troops Of The Zillionaire Real-Estate Power Elite

Sherri Franklin of the Urban Design Center, consultant to the Central Avenue Historic BID, speaks at the November 2, 2016 meeting of the Board of Directors.
Sherri Franklin of the Urban Design Center, consultant to the Central Avenue Historic BID, speaks at the November 2, 2016 meeting of the Board of Directors. I apologize for the crappy image quality. I didn’t plan to film.
After I spent some time looking into the Central Avenue Historic BID in the context of potential political goals for the post-approval Venice Beach BID, I thought it would be interesting to learn more about this newborn BID.19 The meetings are held at CD9’s district office at 4301 S. Central,20 so on a very pleasant evening last Thursday, I took the 210 out of Hollywood to MLK and Crenshaw, where I boarded the 705 to Central and Vernon from whence a couple blocks North on Central to watch the Board of Directors conduct their business.21 The meeting was scheduled to start at 5:30, but that evidently included some preliminaries, because when I got there at about 10 to 622 they hadn’t started yet.

Anyway, take a look at the agenda. You can see that they’re talking about the kind of things that one would expect BIDs to talk about from, e.g., reading the Wikipedia page on BIDs,23 like branding and marketing, cleaning the streets, having Halloween events, and so on. And watch this short clip of the meeting.24 That’s Sherri Franklin of the Urban Design Center, the BID consultant, who also seems to be functioning as executive director, talking about some kind of partnership the BID’s working on with Hollywood Community Housing Corporation involving affordable housing at the corner of Central and Jefferson.25

Allan Muhammad, security director for the Central Avenue Historic District BID.
Allan Muhammad, security director for the Central Avenue Historic District BID.
And then you can watch here as BID security director Allan Muhammad introduces his employees, and then they proceed to hand out sample Halloween bags to everyone in the room. They didn’t once discuss custodial arrests, handcuffs, social engineering, mass relocations, self-aggrandizing 5150 holds, or any of the other hard-edged tactics of which the City’s older and ever so much more dangerous BIDs are so enamored. And even though I only got 15 minutes on tape of the 90 minutes I was there26 they didn’t really have anything objectionable to say even during the parts of the meeting I didn’t record. They talked about parking, they talked about their phone bills, they talked about how it was hard for the BID to patronize local businesses because they mostly only accepted cash.27

Could this be what a BID looks like as BIDs were intended to look? Well, the very question is based on a false assumption. And there were foreshadowings of bad news to come. And on the way home, and for the last few days, it’s got me thinking about what BIDs were meant to be,28how BIDs29 evolve under selective pressure, and how it’s probably inevitable that this BID is going to end up like the worst of the Downtown BIDs, the worst of the Hollywood BIDs. The short version is that BIDs probably started out as helpful tools, but as a wise woman once said, “every tool is a weapon if you hold it right.” So turn the page if you’re still interested…
Continue reading Central Avenue Historic BID May Provide Insight Into The Process By Which BIDs Evolved From Whatever They Were Originally Conceived To Be Into Weaponized Shock Troops Of The Zillionaire Real-Estate Power Elite

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Crucial Breakthrough In Anti-BID CPRA Pragmatics From City Clerk: Miranda Paster Accepts My Argument And Thereby Releases Mailing List For South Los Angeles Industrial Tract BID!

Standard Plating at 826 E 62nd Street in the South Los Angeles Industrial Tract BID.
Standard Plating at 826 E 62nd Street in the South Los Angeles Industrial Tract BID.
One of the primary problems faced by anti-BID activists is that it is next to impossible to find out how to get in touch with the property owners involved in the BID. It’s politically necessary to do so because as matters stand now they are the only people who can get rid of a BID, so we have to be able to send them propaganda.30 This problem was crucial in the (ongoing) struggle against the Venice Beach BID,31 with both the City and CD11 claiming that the mailing list was not a public record. I chipped away and chipped away at this and finally, a couple months ago, Miranda Paster accepted my arguments and handed over the list.

For technical reasons, though, that victory was not applicable to BIDs in general.32 You can read the details in the above-linked-to post. So the next step is to find a way to get a mailing list for any BID. This is still ongoing, but today another one of my intermediate, more restricted, strategies was successful. It’s based on this June 15, 2015 report from Miranda Paster to Holly Wolcott.33 The crucial bit is the statement that:

On June 18, 2015, staff mailed out notice of public hearing and ballot packages for the renewal of the South Los Angeles Industrial Tract and Granada Hills Business Improvement District and notice of public meeting and public hearing for the renewal of the Los Angeles Tourism Marketing District.

Recall that for months, Miranda Paster put me off the mailing list for the Venice Beach BID by claiming that it was the property of shadowy BID consultant Tara Devine and not, therefore, a public record. Thus the success of these requests hinges on the precise definition of what a public record is, and for that and subsequent discussion, you have to turn the page.
Continue reading Crucial Breakthrough In Anti-BID CPRA Pragmatics From City Clerk: Miranda Paster Accepts My Argument And Thereby Releases Mailing List For South Los Angeles Industrial Tract BID!

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The Hollywood Property Owners Alliance Domain Has Expired And Is Parked At Godaddy And We Are Gaining Even More Internet Credibilities Over The Poor Sad Little BID Peoples Of The Hollywood Property Owners Alliance!

Screenshots or it did not happen!! Friends, this is what it looks like to be a loser on the Internets!  It is bad enough that you even register your domain with Godaddy, but if you let it expire and get parked for all the world to see?!  Losers!  Losers squared!!  Losers to the power of n, friends!!!
Screenshots or it did not happen!! Friends, this is what it looks like to be a loser on the Internets! It is bad enough that you even register your domain with Godaddy, but if you let it expire and get parked for all the world to see?! Losers! Losers squared!! Losers to the power of n, friends!!!
Good morning, friends!! It has been almost exactly two months since last I wrote to you with technical-geek-news about the successes and winnerousness of your heroes here at MK.org relative to the failures and loserosity of your zeroes over there at the Hollywood Property Owners Alliance. Well, things are going from bad for them to worse for them and from better for us to really really exceedingly better for us!

First of all, they have let their domain expire! See it parked at Godaddy in the screenshot above. Now, this is probably not a permanent situation. Indeed, their whois record from this morning shows that the domain was renewed yesterday, and I suppose it will once again point at their website as soon as the DNS records propagate. However, things must be all falling to pieces over there for this even to have happened. Kerry Morrison has long been the kind of leader about whom even her detractors will concede that she will keep the metaphorical trains running on time, and keeping a domain name registered is one of the simplest trains of all. Is there not autorenewal at Godaddy? Did someone let their credit card expire? Enquiring minds wanna to know!34 Of course, even without evidence we are happy to take credit for this lapse and any other chaos they may be experiencing over there at their secret headquarters. They are like those little bugs that scurry all about when their subterranean antics are exposed to public view by having their rock lifted up by curious students of slimy undergrounditude!

And as long as I am writing about this domain name expiry drama, I thought I would take another look at their Alexa rankings in relation to our Alexa rankings. You may recall that two months ago they were doing badly and we were doing betterly. In particular, they were at 682,470 in the U.S. and we were at 657,525. Furthermore, we were at 4,630,498 in the world.35 Well, now check it out!
Continue reading The Hollywood Property Owners Alliance Domain Has Expired And Is Parked At Godaddy And We Are Gaining Even More Internet Credibilities Over The Poor Sad Little BID Peoples Of The Hollywood Property Owners Alliance!

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The Venice Beach BID Hearing Is Scheduled For November 8, 2016 At 10 A.M. And Here Is Some Anti-BID Material That’s Being Circulated

anti_venice_beach_bid_flyer_screenshotIf you’ve been following the story of the Venice Beach BID at all you will know that the first hearing that the City held on this matter was shown to be invalid via some sharp lawyering by superhero public interest attorney Shayla Myers and that subsequently the City had to call a complete do-over of the process. Well, the time for the do-over hearing is rapidly approaching. It will be held at City Hall on Tuesday, November 8, at 10 a.m. If you can fit it in I hope you can show up and voice your opposition.

And your opposition is being heard by the City. For instance, City Clerk Holly Wolcott was recently quoted in the Argonaut to the effect that

… the drama surrounding the Venice Beach BID is unprecedented. “Since I’ve been in office, we’ve never seen the level of turnout we had for the BID nor had a BID ordinance repealed for these reasons,” she said.

Whether or not we’re ultimately successful in preventing this BID36 is less important than to show the City that they can no longer expect that their BID-building shenanigans will unfold unopposed in the quiet of their formerly smoke-filled back rooms. It’s important to show them that what Wolcott thinks is an anomaly may well be the new normal.

Finally, as they have been doing all along, the fine folks at Venice Community Housing are leaders in the anti-BID movement, and they’ve produced and/or distributed some useful information, to which you can find links after the break.
Continue reading The Venice Beach BID Hearing Is Scheduled For November 8, 2016 At 10 A.M. And Here Is Some Anti-BID Material That’s Being Circulated

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David Ryu’s Staff Evidently Considered and Rejected Lisa Schechter’s and Media District BID’s (Illegal, Unethical) Plea For A Council Motion Regarding Oversize Vehicle Parking In February 2016

Lisa Schechter in February 2016, right around the time that David Ryu's staff was quite sensibly deciding to ignore her illegal and unethical lobbying to ban RV's in the Media District.
Lisa Schechter in February 2016, right around the time that David Ryu’s staff was quite sensibly deciding to ignore her illegal and unethical lobbying to attack homeless people by banning RVs in the Media District.
Recall that in August 2016, Mitch O’Farrell and Mike Bonin introduced a motion in Council to attack the homeless by prohibiting RVs from parking overnight in the Media District BID. This was as a result of lobbying by Lisa Schechter, now executive directrix of the Hollywood Media District BID, but formerly Tom LaBonge’s high muckety-muck for something or another. The full story is here. At the time I wondered why David Ryu hadn’t seconded the motion, given that (a) Schechter had lobbied him heavily to do so, and (b) a significant part of the Media District BID is in CD4:

[His non-involvement] suggests the possibility that Ryu isn’t as invested in pleasing these BIDdies as O’Farrell is. Or maybe he’s sitting it out because his staff has made him aware that Schechter’s up to something sneaky.

Well, I recently obtained emails from CD4 that bear on the matter. These are heavily redacted, but interestingly, as is sometimes the case, the redactions themselves tell part of the story.
Continue reading David Ryu’s Staff Evidently Considered and Rejected Lisa Schechter’s and Media District BID’s (Illegal, Unethical) Plea For A Council Motion Regarding Oversize Vehicle Parking In February 2016

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