Tag Archives: Economic Development Committee

Joe Buscaino Moves To Sell Off Two City-Owned Parcels In CD15 To Private Developers For Some Nonsensical Purpose He’s Calling Economic Development – And They’re In Freaking Opportunity Zones So Not Only Is The Grift Turned Up To Eleven But The Sale Will Likely Support Gentrification And Displacement – And Half The Money From Such Sales Goes Straight Into The Councilmember’s Discretionary Slush Funds – Which Are Used Among Other Things For Projects To Boost Incumbent Popularity Before Elections – This Is What City Councilmembers Do With Our Public Land – Enrich Themselves And Their Zillionaire Cronies – Instead Of Building Social Housing On It – And A Loophole In Council’s Recent Motion To Require City Property To Be Used For Affordable Housing Is Finally Revealed!

In 2017 the Federal Government created the latest entry in a long series of programs leveraging various combinations of tax cuts and economic incentives to enrich zillionaires at the expense of poor urban communities of color. The current incarnation is known as an Opportunity Zone. Opportunity Zones, like their predecessors, use powerful economic and policy tools to promote displacement, to incentivize gentrification, and to siphon money from the treasury to zillionaire coffers. The heroic economic justice activists in SAJE have done a great deal of deep and fundamental research into this program, including its likely effects on Los Angeles, published in a blockbuster report called Displacement Zones.

The Los Angeles muncipal government, which can fruitfully be conceptualized as an incredibly efficient alchemical process for transformatively combining human misery and real estate into zillionaire gold,1 is, as you’d expect, right on top of this newly created opportunity for grift. And, also as you’d expect, they’ve hidden many parts of the process from the public, not by carrying them out in the proverbial but by now outmoded smoke-filled rooms, but by obscuring them beneath multiple layers of semantically empty words, distributing pieces of the process across multiple council files, mostly supplementary, in the effectively-unsearchable-by-design Council File Management System, and so on.2

But with careful attention to the City’s various announcements and close reading of motions it’s occasionally possible to become aware of some of their moves. This is how I learned that in June 2019 Joe Buscaino introduced a couple of motions with the phrase “City Economic Development / Asset Management Framework Review” in their titles, each along with a specific address. These are Council File 12-1549-S14, which is about 500 S. Mesa Street and Council File 12-1549-S15, which is about 1845 E. 103rd Street. Both motions note that the properties are located in Opportunity Zones. The motions instruct various City departments to evaluate the properties “for economic development purposes” according to some set of criteria called “the Asset Management Framework” and then report back to Council on their findings.

The report-backs hit the Council Files a few weeks ago (500 S. Mesa Street and 1845 E. 103rd Street). Both recommend, as they seem to have been intended to do, that the City issue a request for proposals to use the properties for economic development, potentially through private development. The fact that the two reports are identically worded except for a few specific details about the properties suggests that not much care was taken in their creation. This supports the view that the outcomes of the evaluations were predetermined. The fact that the criteria for what counts as economic development are so vague supports the view that the ultimate point is to sell these valuable parcels off to some developer with a superficially plausible story about tax benefits or whatever.

And the fact that the City is going to sell the properties to private developers3 supports the view that the goal is grift rather than using City-owned resources to help residents of the City. It’s not like the City of Los Angeles itself can’t develop its properties for commercial use, which would support economic development just as much as if a private developer owned the land, or more because more of the money would go to the City. Just for instance, the City owns plenty of parking garages, many of which have retail space at street level. The City offers these for lease to commercial tenants, a proposition which must be of more value to the City than if a private developer is involved in any capacity and taking out profits.
Continue reading Joe Buscaino Moves To Sell Off Two City-Owned Parcels In CD15 To Private Developers For Some Nonsensical Purpose He’s Calling Economic Development – And They’re In Freaking Opportunity Zones So Not Only Is The Grift Turned Up To Eleven But The Sale Will Likely Support Gentrification And Displacement – And Half The Money From Such Sales Goes Straight Into The Councilmember’s Discretionary Slush Funds – Which Are Used Among Other Things For Projects To Boost Incumbent Popularity Before Elections – This Is What City Councilmembers Do With Our Public Land – Enrich Themselves And Their Zillionaire Cronies – Instead Of Building Social Housing On It – And A Loophole In Council’s Recent Motion To Require City Property To Be Used For Affordable Housing Is Finally Revealed!

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Gil Cedillo, Morrie Goldman, George Yu — CD1’s Unholy Trinity — Cedillo Met With Corrupt Huizar-Linked Lobbyist Goldman 25 Times Since Taking Office In July 2013 — George Yu Of The Chinatown BID Is A Client Of Goldman’s — They Eat Lunch With Cedillo And Hate On Street Vendors — Same Old Story At 200 N Spring Street — And Bonus Sleaze! — Morrie Goldman Brings Lightstone To Meet With Cedillo About A Giant Hotel Project Not Even In His District! — Cause Why Should Huizar Get All The Dirty Money?! — But There Are Things Too Sleazy Even For Cedillo! — Read On To Find Out What!

Morrie Goldman is a former Council staffer who now runs a lobbying firm called Urban Solutions. Of course lately he’s much-discussed because of his person-of-interest flavored links to José Huizar. And it turns out that Goldman hasn’t just been spending quality time with Huizar, but that he’s a regular dining companion of Gil Cedillo as well.

I recently obtained a whole slew of calendars from some of Cedillo’s staffies and, importantly, Cedillo himself. Take a look at what I have so far and especially see Cedillo’s appointment calendar from 2013 through 2018. The PDF is searchable, and just for kicks, search it for “Morrie.” You’ll see 25 hits, all for meetings with Morrie Goldman, at the finest restaurants, with clients, for drinks, and so on. This, of course, is evidence. It’ s just not yet clear what it’s evidence of.

Some of the clients are listed, e.g. Clear Channel is in there a lot, probably because everyone who’s not a politician hates them. United American Properties, which was, maybe still is, developing property in Westlake, also makes an appearance. But many of the listings don’t identify the issues to be discussed, some don’t even identify the clients whose issues Goldman is to lobby Cedillo on. Which is why calendars are always just a starting point. Emails are what’s needed!1

And not only did I manage to obtain these calendars, but I also got this fabulous spool of emails, mostly between Debbie Kim and Morrie Goldman, with special guest appearances by Goldman’s fellow Huizar-scandal-person-of-interest Art Gastelum!2 And there’s all kind of action in those emails, believe me! And some of the action involves an old friend of this blog, everybody’s favorite psychopathic rageball, Mr. George Yu of the Chinatown BID! Apparently the BID, or to be precise the property owners association, is Goldman’s client.3

And Goldman goes with Yu to meet Cedillo and eat lunch and talk about things like street vending, which all BIDdies hate, but which Yu hates more than the average BIDdie, cause, in addition to rage, Yu is just that much more than average filled with hate. From the evidence I have Goldman and Yu met with Cedillo three times since 2015 over street vending (one, two, and three). And what did Cedillo have to say about it to the BIDdies, especially given that he’s on the record as supporting legal street vending in Los Angeles? Well, I don’t know.4

And the emails also show that on January 29, 2016 Goldman sought a meeting for representatives from Lightstone with Cedillo. Lightstone is, of course, famous for its Fig + Pico project, right smack in the middle of Huizar’s CD14. This is the project for which the City agreed to more than $100 million in tax rebates. And why was Goldman so eager to introduce his clients to Cedillo when they were building in CD14?

Well, Goldman says in the emails that it’s because “they are actively looking at other sites” but I’m willing to bet some money that it had more to do with the fact that at that time Cedillo was on the Economic Development Committee, which voted to move the project forward on February 9, 2016, less than two weeks after Goldman started arranging the meeting.5

And finally there’s this snazzy little number from 2017, wherein Morrie Goldman invites Gil Cedillo to take part in a press conference that his client Clear Channel, the most criminally inclined billboard company in the history of billboard companies, is putting together to celebrate National Missing Children’s Day.6 But Cedillo staffers Fredy Ceja and Arturo Chavez, even though they agree that missing children are a good cause and so on, don’t think “the perception” is good for their boss. Turn the page to read a transcription of that one!
Continue reading Gil Cedillo, Morrie Goldman, George Yu — CD1’s Unholy Trinity — Cedillo Met With Corrupt Huizar-Linked Lobbyist Goldman 25 Times Since Taking Office In July 2013 — George Yu Of The Chinatown BID Is A Client Of Goldman’s — They Eat Lunch With Cedillo And Hate On Street Vendors — Same Old Story At 200 N Spring Street — And Bonus Sleaze! — Morrie Goldman Brings Lightstone To Meet With Cedillo About A Giant Hotel Project Not Even In His District! — Cause Why Should Huizar Get All The Dirty Money?! — But There Are Things Too Sleazy Even For Cedillo! — Read On To Find Out What!

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The South Park BID Solicited — Or Extorted — Donations Totalling $80,000 From Developers To Pay For Some Studies They Wanted Done — In Return The BID Sent Staffers To City Council Committee Meetings To Give Public Comment In Favor Of The Developers’ Projects — Using Talking Points Supplied By The Developers — Money Well Spent For The Developers I’m Guessing Since Councilmembers Probably Won’t Approve Projects BIDs Oppose — This Is One Way In Which The Illusion Of Community Buy-In Is Created And Maintained In Los Angeles — One Of The Developers Involved Was Lightstone Group — Whose Lobbyists Are Also Being Investigated In Relation To José Huizar — Because Of Course They Are

Here’s the short version. In 2017 the South Park BID wanted to lobby Metro concerning some transportation issues. To do this they needed some reports prepared by professionals who were going to charge them around $80,000. For whatever reason they didn’t want to pay out of the BID budget, so they hit up local developers for $5,000 contributions. In exchange the BID supported the developers’ various projects before City Council committees and commissions using talking points prepped by the developers to inform their public comments.

First, let’s talk about the two issues the BID was, and is, lobbying for. One is to establish an enhanced infrastructure financing district (EIFD)1 to fund transit improvements in the BID, in particular moving Pico Station underground.2 The BID’s “one pager”3 on the benefits to be gained from the EIFD can be read by clicking here and their presentation on “undergrounding” Pico Station is available here. The other issue has to do with improving connections between various presently disconnected-by-public-transit points Downtown. The BID’s presentation on that can be read here.

And of course before one goes a-lobbying one needs reports! Written by experts! And experts don’t come cheap, but they will provide proposals with estimates of the costs, and here are the two the BID obtained:

And based on these estimates, the South Park BID determined that it needed $80,000 to begin the report-making process. And for whatever reason, they also determined that they were only going to pay $5,000 themselves. The rest, saith the BID, they were going to raise from developers and maybe some other BIDs Downtown. And the story of this whole mess, told, as usual, in excruciating detail via transcriptions of emails, can be found after the break!
Continue reading The South Park BID Solicited — Or Extorted — Donations Totalling $80,000 From Developers To Pay For Some Studies They Wanted Done — In Return The BID Sent Staffers To City Council Committee Meetings To Give Public Comment In Favor Of The Developers’ Projects — Using Talking Points Supplied By The Developers — Money Well Spent For The Developers I’m Guessing Since Councilmembers Probably Won’t Approve Projects BIDs Oppose — This Is One Way In Which The Illusion Of Community Buy-In Is Created And Maintained In Los Angeles — One Of The Developers Involved Was Lightstone Group — Whose Lobbyists Are Also Being Investigated In Relation To José Huizar — Because Of Course They Are

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Once Again The City Of Los Angeles Was Pushed To The Very Brink Of The Precipice Of Batshit Insanity By Business Improvement Districts And Their Unhinged Obsession With Controlling Every Aspect Of Public Life In Los Angeles — And Unexpectedly Stepped Back And Just Said “No” — Is Holly Wolcott Going To Lose Her Job Over This?

As you’re no doubt aware, the City of Los Angeles has been trying for years to put together a proposed ordinance legalizing street vending.1 The problem, of course, is that business improvement districts and other zillionaire-associated pressure groups hate street vending with a passion that is so incomprehensible, so devoid of rationality, that no one can appease them. No matter what concessions the City gives them they want more. The absolutely unhinged nature of their psychotic demands are exemplified, e.g., in this tragic tale from the Westchester Town Center BID.

In March of this year the Central City Association distilled all these lunatic demands into a concise three page document. They include, among many other things, the ability to exclude street vendors from any part of the City for no reason, the ability to confiscate their carts if they look at the BID patrol crosseyed, the ability for property owners to veto their presence for no reason, and the requirement that street vendors pay extra money to business improvement districts for the privilege of operating within their boundaries.

Now, the City Council, usually willing to do whatever BIDdies ask them to do, has had to be somewhat more circumspect when it comes to street vending because of the intense public scrutiny. The state-level Democratic Party, e.g., has taken up general legalization as a social and economic justice issue, leading to the overwhelming passage of Ricardo Lara’s SB-946 a couple weeks ago.2 But more circumspect or not, they still have to give the BIDdies some respect or they’ll cut off their access to that rich source of campaign contributions.

This is probably why the Economic Development Committee asked the City Clerk to report back on how to make street vendors who operate within BIDs pay extra fees that would go to the BIDs as, I don’t know, like protection money or something. These report-backs typically reflect the deep psychosis of this City’s zillionaires, who really seem to think that their thoughts and feelings are objectively important rather than being only contextually important, with the context, of course, being campaign contributions.3

So what a surprise it was to learn that Holly Wolcott has filed a gem of a report, which calmly and decisively explains to the City Council that actually any such fee scheme would be illegal. What?! Wolcott explicitly suggests that if street vendors in BIDs create extra costs for the BIDs the BIDs can budget money to pay for them but they cannot legally force the vendors to pay.

Holly Wolcott, pretty famously, recently flipped out over the fact that the Venice Beach BID collected far more than a million dollars for 2017 and then didn’t actually do anything at all. She schemed successfully to force the BID to refund the unspent money, and, in the midst of a great deal of personal tension between the BIDdies and the Clerk’s office, the money was in fact refunded. Perhaps this uncharacteristically non-BID-agreeing-with report-back is more of the same? I’m not sure, but it sure is welcome. Turn the page for a transcription of Holly Wolcott’s peculiarly sensible report!
Continue reading Once Again The City Of Los Angeles Was Pushed To The Very Brink Of The Precipice Of Batshit Insanity By Business Improvement Districts And Their Unhinged Obsession With Controlling Every Aspect Of Public Life In Los Angeles — And Unexpectedly Stepped Back And Just Said “No” — Is Holly Wolcott Going To Lose Her Job Over This?

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The Venice Beach BID Annual Planning Report Provides An Opportunity For Mike Bonin To Unilaterally Remove Properties From The BID Or Reduce Their Assessments To Zero — This Could Happen This Month If Mike Bonin Will Do It!— No Zoning Change Required Even!— Maybe Some Constituent Pressure Will Convince Bonin To Use This Power?


Business improvement districts in California are required by the Property and Business Improvement District Law of 1994 at §36650 to submit an annual planning report to the City every year. The reports must subsequently be approved by the City Council.

One function of these reports is to explain how the BID will spend its money in the coming year, but they have another important purpose. According to the statute:

The report may propose changes, including, but not limited to, the boundaries of the property and business improvement district or any benefit zones within the district, the basis and method of levying the assessments, and any changes in the classification of property, including any categories of business, if a classification is used.

In other words BIDs are allowed to remove properties entirely or reduce their assessments, presumably all the way to zero if they so choose, merely by stating that they’ll do so in their annual planning report.

Now, the Venice Beach BID approved their APR at their April 13, 2018 meeting and submitted it to the City on April 30. They didn’t propose any changes in boundaries or assessment methods. But it turns out that, according to the law, they don’t have the final say. The statute says at §36650(c) that:

The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified.

So that means that not only can the BID use the APR to remove properties or to reduce their assessments even down to zero, but the City Council can do that also, even without the BID’s approval. And the way things work in the City of Los Angeles, that means that Mike Bonin himself can make the changes. There’s no way his colleagues are going to oppose him on a matter that affects only his district. Read on to see how this might actually lead to properties being removed from the BID this year!
Continue reading The Venice Beach BID Annual Planning Report Provides An Opportunity For Mike Bonin To Unilaterally Remove Properties From The BID Or Reduce Their Assessments To Zero — This Could Happen This Month If Mike Bonin Will Do It!— No Zoning Change Required Even!— Maybe Some Constituent Pressure Will Convince Bonin To Use This Power?

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Echo Park BID Formation Process Rolls On, With Economic Development Committee Just Yesterday, At Behest Of CD13 Rep Mitch O’Freaking Farrell, Recommending Allocation Of God Only Knows How Much Money To Civitas To Complete The Establishment Process

It’s been almost two years now since our esteemed City Council breathed new life into the inchoate Echo Park BID in May 2016 in response to a letter from the Echo Park Chamber of Commerce, who is apparently the BID proponent group for this mishegas. Well, that infusion of cash into its zombie veins apparently wasn’t enough to send it lurching off into what passes for the civic life of this fair but wounded City of ours.

Thus, evidently, CD13 rep Mitch O’Freaking Farrell found it necessary a few weeks ago to move in Council that the BID formation contract with Civitas Advisors, who’s acting as the BID consultant,1 be extended.2 Yesterday, the Economic Development Committee approved3 Mitchie’s motion and sent a report to the full Council for their sadly inevitable approval.

The original Echo Park BID formation materials are collected in CF 10-0154 and for all this contract extension voodoo they started a supplemental, which is at CF 10-0154-S1. Turn the page for a transcription of O’Farrell’s motion from February 27 as well as of an interesting selection from the Committee’s report which sheds some light on where things stand.

Continue reading Echo Park BID Formation Process Rolls On, With Economic Development Committee Just Yesterday, At Behest Of CD13 Rep Mitch O’Freaking Farrell, Recommending Allocation Of God Only Knows How Much Money To Civitas To Complete The Establishment Process

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It Appears That East Hollywood BID Director Nicole Shahenian Lied To Los Angeles City Clerk Holly Wolcott About The Circumstances Of The Preparation Of The EHBID’s 2015 Annual Planning Report And, As Shahenian Was A Registered Lobbyist At The Time, Thereby Violated LAMC 48.04(B)

Nicole Shahenian, you got some splainin’ to do!
The background to this post is unavoidably technical and lengthy. If you’re already familiar with the Annual Planning Report process for BIDs as mandated by Streets and Highways Code §36650, you may want to skip directly to the report I submitted to the City Ethics Commission this morning.

One requirement that the Property and Business Improvement District Law places on BIDs, found at §36650, is the submission of annual planning reports (“APRs”) to the City Council:

The owners’ association shall cause to be prepared a report for each fiscal year, except the first year, for which assessments are to be levied and collected to pay the costs of the improvements, maintenance, and activities described in the report. … The report shall be filed with the clerk … The city council may approve the report as filed by the owners’ association or may modify any particular contained in the report and approve it as modified.

And it seems that the BID isn’t allowed to spend money on stuff that’s not discussed in the APR, so it’s not a trivial matter.

The way this piece of code plays out in Los Angeles is that, first, a BID director submits the APR to the Clerk along with a formulaic cover letter. For instance, here is the one submitted by Nicole Shahenian on December 30, 2014 to accompany the East Hollywood BID’s APR for 2015. This is essentially the same letter submitted by all BIDs:

Dear Ms. Wolcott:
As required by the Property and Business Improvement District Law of 1994, California Streets and Highways Code Section 36650, the Board of Directors of the East Hollywood Business Improvement District has caused this East Hollywood Business Improvement District Annual Planning Report to be prepared at its meeting of December 29, 2014.

And don’t forget that state law requires the City Council to adopt the report either with or without modifications. In Los Angeles this part of the process is initiated by the Clerk sending another form letter to City Council, recommending that they adopt the BID’s APR. It’s my impression that the Clerk doesn’t recommend modifications to the report at this stage. These seem to be handled by Miranda Paster before the APR is submitted to Council, as in this example involving the Media District BID. Anyway, take a look at Holly Wolcott’s January 14, 2015 recommendation to City Council with respect to the East Hollywood BID’s APR. Like every such document, this states:

The attached Annual Planning Report, which was approved by the District’s Board at their meeting on December 29, 2014, complies with the requirements of the State Law and reports that programs will continue, as outlined in the Management District Plan adopted by the District property owners.

And it goes on from there to recommend:

That the City Council:

  1. FIND that the attached Annual Planning Report for the East Hollywood Property Business Improvement District’s 2015 fiscal year complies with the requirements of the State Law.
  2. ADOPT the attached Annual Planning Report for the East Hollywood Property Business Improvement District’s 2015 fiscal year, pursuant to the State Law.


But there are a number of problems with this story. First, it appears that the East Hollywood BID Board of Directors did not actually meet on December 29, 2014. In fact, it appears that they did not meet at all in December 2014. Of course, it’s notoriously difficult to prove a negative, but I’m going to give it a go.
Continue reading It Appears That East Hollywood BID Director Nicole Shahenian Lied To Los Angeles City Clerk Holly Wolcott About The Circumstances Of The Preparation Of The EHBID’s 2015 Annual Planning Report And, As Shahenian Was A Registered Lobbyist At The Time, Thereby Violated LAMC 48.04(B)

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First Step Toward Establishing Venice Beach BID to be Taken in Council This Morning

The beautiful Venice arcades on Windward Avenue, soon to be patrolled by BID goons in jellybean-colored tee-shirts.
The beautiful Venice arcades on Windward Avenue, soon to be patrolled by BID goons in jellybean-colored tee-shirts.
In its meeting today the City Council is slated to act on CF 16-0749, establishing a property-based Business Improvement District in Venice. This is a tragic but expected development in the ongoing degradation of what was once the loveliest neighborhood in this city. The impending clash between BID security and the politically organized, aware, and active homeless population of Venice is going to be cataclysmic. Once this BID is up and running I will be covering it extensively.
Continue reading First Step Toward Establishing Venice Beach BID to be Taken in Council This Morning

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Epic Fact-Finding Journey to Echo Park to Document What Will Be Lost if the Proposed BID is Established and Call to Political Action!

If the BID is established forget about food trucks.  BIDs freaking hate food trucks.  Especially if they're near a restaurant, like this one on Logan Street North of Sunset is.
If the BID is established forget about food trucks. BIDs freaking hate food trucks. Especially if they’re near a restaurant, like this one on Logan Street North of Sunset is.
If the Echo Park BID is established forget about little old ladies selling flowers, like this one on Sunset Blvd. just West of Echo Park Avenue.  BIDs freaking hate little old ladies!
If the Echo Park BID is established forget about little old ladies selling flowers, like this one on Sunset Blvd. just West of Echo Park Avenue. BIDs freaking hate little old ladies!
If the Echo Park BID is established forget about signs like this.  BIDs freaking hate signs on the sidewalk.
If the Echo Park BID is established forget about signs like this. BIDs freaking hate signs on the sidewalk.
If the BID is established in Echo Park say goodbye to RVs around the Park itself.  BIDs freaking hate RVs.
If the BID is established in Echo Park say goodbye to RVs around the Park itself. BIDs freaking hate RVs.
Due to some kind-hearted click bait1 bestowed by loyal FOMs Esotouric, my colleagues’ recent post on the resurgence of the long-dormant proposed Echo Park Business Improvement District has turned out to be one of our most popular posts of 2016. The colleagues left out some absolutely essential information and so I’m following up on their behalves. Also I used the whole situation as an excuse to ride the 704 Eastbound to Echo Park Avenue and Sunset Blvd. to check out the situation on the ground.

First the essential info: This thing is on the agenda for the Economic Development Committee meeting on Tuesday, May 10, in room 1010 in City Hall. You can go tell them what you think about it. Unfortunately I have other commitments, and I’m sure approval is a foregone conclusion, but there’s the info if you want it.

Second, as you can see from the images accompanying this post, if the BID’s approved a lot of stuff is going to change out there. They’re going to chase off taco trucks. BIDs hate taco trucks with a passion that’s hard to understand. They even, believe it or not, hate taco trucks parked on private property. Showing an astonishing ignorance of the rights of property owners in a free society, they’ve been known to express amazement that they’re not against the law.

If the BID is approved, sidewalk signs have got to go. BIDs freaking hate sidewalk signs. In fact, one of the very first things Kerry Morrison did in the 1990s after the Hollywood Entertainment District BID was established was to go after businesses with signs on the sidewalk. Why? Who the hell knows? It offended her sense of order or something. Why should Echo Park expect anything different.
Continue reading Epic Fact-Finding Journey to Echo Park to Document What Will Be Lost if the Proposed BID is Established and Call to Political Action!

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