Tag Archives: Municipal Lobbying Ordinance

The Fascinating Story Of How It Took Three Months And A Demand Letter From An Attorney To Get Rena Leddy To Disclose That The Fashion District BID Is Paying Steve Gibson Of Urban Place Consulting $215 Per Hour For BID Renewal Consulting, Which Is Less Than Larry Kosmont Gets But More Than Ed Henning

Late last year it occurred to me that BID consultants, who help BIDs with the City processes necessary to establish or renew a BID, are essentially engaging in lobbying activity as defined in the Municipal Lobbying Ordinance at LAMC §48.02 and yet none of them1 seemed to be registered with the Ethics Commission as required by LAMC §48.07(A).

I then spent months piecing together over 100 pages of evidence to show that BID consultant Tara Devine had violated this law. Subsequently it occurred to me that the contracts that the consultants sign with BIDs would provide essential evidence that they’d been acting as lobbyists, so I determined to request these from many renewing BIDs. This led me to the discovery, thanks to the incomparable Laurie Hughes of the Gateway to LA BID, that GTLA’s BID consultant, Larry Kosmont, actually was registered as a lobbyist and had disclosed his BID consultancy as lobbying in his required reporting. The San Pedro BID is also up for renewal, and has recently released a fairly complete set of BID renewal records.

This brings us to the Fashion District. On February 21, 2017 I emailed Rena Leddy to request, among other material:

… all records associated with the renewal process, including but not limited to communications between the BID and the consultant and/or the engineer, contracts with and invoices from the consultant or the engineer, materials prepared by the consultant or the engineer for the renewal process, databases and mailing lists prepared or used by the consultant or the engineer, and also any communications between the consultant and the engineer that aren’t already responsive to the first part of this request.

The story of what happened after that stretched out over three months and generated many many megabytes of discussion. Read on for a (far too) detailed and exceedingly well-documented narrative recounting, complete with a happy, happy ending!
Continue reading The Fascinating Story Of How It Took Three Months And A Demand Letter From An Attorney To Get Rena Leddy To Disclose That The Fashion District BID Is Paying Steve Gibson Of Urban Place Consulting $215 Per Hour For BID Renewal Consulting, Which Is Less Than Larry Kosmont Gets But More Than Ed Henning

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Relatively Complete Set Of Records Pertaining To Ongoing San Pedro Historic Waterfront BID Renewal Process Reveals Hitherto Unknown Details About Costs, Hours, Contract Terms, Etc. Heralding Plausible Case Against Edward Henning For Failure To Register As A Lobbyist But Not, Unfortunately, Against The BID Because They’re Not Paying Him Enough

Last month I learned that the San Pedro BID was paying Edward Henning $20,000 to handle their BID renewal process. This discovery was independently interesting, but also important for my ongoing research project of learning everything possible about BID consultancy with the ultimate goal of shopping as many BID consultants to the City Ethics Commission as possible, mostly for violations of LAMC §48.07, which requires that “[a]n individual who qualifies as a lobbyist shall register with the City Ethics Commission within 10 days after the end of the calendar month in which the individual qualifies as a lobbyist.”

In this clause, someone “qualifies as a lobbyist” when they, according to LAMC §48.02 are “compensated to spend 30 or more hours in any consecutive three-month period engaged in lobbying activities.”2 Note that today I’m mostly skipping the argument that BID consultancy qualifies as lobbying activities, but you can read about it in excruciating detail here.

Part of the evidence that I obtained last month were these two invoices from Edward Henning to the SPHWBID. As you can see, they span the time period from March 2016 through December 12, 2016 and bill for a total of 75 hours. That’s roughly 7.5 hours per month if distributed evenly across the billing period. This is not enough evidence to show that Edward Henning was required to register. In fact, if he did work about 7.5 hours a month he would not have been so required.

It’s precisely that issue that today’s document release shines some light on. The other day, San Pedro BID executive directrix Lorena Parker was kind enough to send me over 100 emails to and from Edward Henning.3 At first I thought I’d be able to pick out 3 consecutive months in which Edward Henning was compensated for 30 hours by assuming that the number of emails in a month was proportional to the number of hours worked. This didn’t pan out for a number of reasons, not least because I don’t yet have emails between Edward Henning and the City of LA that weren’t CC-ed to Lorena Parker. I can tell from internal evidence that there are some of these,4 and I have a pending CPRA request for them, but they’re not yet in hand.

Read on for more detail on the unregistered lobbying case as well as a new theory that I thought at first might actually get the BID itself in some trouble rather than just the consultant. I don’t think it’ll work out in this particular case, but it has interesting implications for the future. Bad scene for the BIDdies and lulz5 all round for humanity!
Continue reading Relatively Complete Set Of Records Pertaining To Ongoing San Pedro Historic Waterfront BID Renewal Process Reveals Hitherto Unknown Details About Costs, Hours, Contract Terms, Etc. Heralding Plausible Case Against Edward Henning For Failure To Register As A Lobbyist But Not, Unfortunately, Against The BID Because They’re Not Paying Him Enough

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Tales From The BONC-Side Part 1: In Which Scott Gray And Debbie Welsch Of Capital Foresight Reveal Themselves As Whiny Ignorant Little Liars And John Howland, Formerly Of The Central City Association, Reveals That He May Be Whiny, He May Be Ignorant, He May Be Little, But He’s Not A Liar, At Least Not When He Would Violate LAMC §48.04(B) By Lying

Background: You can read my previous stories on the Skid Row Neighborhood Council formation effort and also see Gale Holland’s article in the Times for a more balanced perspective.

As you may recall, I’ve been tracking the illegal lobbying carried out by and on behalf of various shady downtown zillionaires with the support and connivance of the staff of various downtown business improvement districts in opposition to the Skid Row Neighborhood Council formation effort. As part of their creepy conspiracy, the usual motley crew of zillionaires and zillionaire-identified-groupies showed up at the March 20, 2017 meeting of the Board of Neighborhood Commissioners (affectionately known as BONC) to speak what passes for their minds in zillionairelandia.

In the ordinary course of events, BONC posts audio of their meetings on the open internet, but, for whatever reason, when I took a look a few weeks ago, the March 20 meeting did not appear. After a few weeks worth of pleasant emails with various City employees, though, the audio has now been posted. I also published it on Archive.Org along with a copy of the minutes so you can follow along if you wish.

There’s a lot of interesting stuff in there, some of it inspiring, most of it horrifying in that special spine-tingly manner that glimpses into the seething caucasian-hot liquid id-core of the local politics of resentment are wont to horrify. I plan to write occasionally on episodes from this meeting, as the mood strikes, and today’s story concerns comments by Scott Gray and Debbie Welsch of shadowy zillionaire real estate conspiracy Capital Foresight,6 and shadowy lobbyist-to-the-zillionaires, John Howland.7

The gist of the matter is this, though. Debbie Welsch and Scott Gray told lie after lie, some of them beyond surreal in their fundamental disconnect with reality. On the other hand, John Howland, who at the time of the meeting was employed as a registered lobbyist with CCA, mostly, although he is quite an evil fellow indeed, told the truth. This is arguably less due to his inherent honesty than it is to the fact that registered lobbyists are required to sign a form upon registration acknowledging that they are aware of LAMC §48.04(B), which states that:

No lobbyist or lobbying firm subject to the requirements of the Article shall…[f]raudulently deceive or attempt to deceive any City official with regard to any material fact pertinent to any pending or proposed municipal legislation.

Anyway, after the break you will find embedded audio and transcriptions of the comments of all three of these dimwits, along with as much detailed mockery as I was able to type before I had to run off to the loo to eat lunch backwards​.
Continue reading Tales From The BONC-Side Part 1: In Which Scott Gray And Debbie Welsch Of Capital Foresight Reveal Themselves As Whiny Ignorant Little Liars And John Howland, Formerly Of The Central City Association, Reveals That He May Be Whiny, He May Be Ignorant, He May Be Little, But He’s Not A Liar, At Least Not When He Would Violate LAMC §48.04(B) By Lying

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Historic Core BID Executive Directrix Blair Besten Seems OK With The Crimes Of Her Employers, E.g. HCBID Board Members Ruben “The Homicidal Slumlord” Islas And Michael “Asshole Buddy With Ultra-Corrupt Tax Assessor John Noguez” Delijani, Even While Claiming That “The increase in crime lowers the morale of the neighborhood”

The fact that, as I reported on Friday, Blair Besten, batty little fusspot queen of the Historic Core BID, along with her ne’er-do-well companions in corruption, Estela Lopez and Michael Delijani, were meeting as early as January 2017 with CD14 Councilswordsman José Huizar to oppose the Skid Row Neighborhood Council more or less overshadowed the parallel discovery that, at roughly the same time, Ms. Blair Besten was also setting up a meeting between Mr. José and Ruben Islas, one of her bosses from the HCBID Board of Directors.8

Now, Ruben “the homicidal slumlord” Islas is famous not just for whatever it is he does to be a zillionaire, but also for the fact that he and a bunch of his co-conspirators were arrested and charged with manslaughter and a host of other crimes in 2010 related to the fact that the slums they were then lording over were in such bad shape that three people died as a result. This incident followed the now-seen-to-be-cruelly-ironic series of criminal counts filed against Islas‘s firm for roughly similar misconduct by then-City-Attorney Rockard Delgadillo, lately working under the table as an anti-human lobbyist for a shadowy Downtown law firm.

And similarly, the other one of Ms. Blair Besten’s bosses whose name has come up a lot recently, that is to say furtive hereditary imperialist downtown zillionaire Michael Delijani, has also availed himself of Blair Besten’s probably-illegally-exercised9 skills at relationship building with CD14 repster10 José Huizar. Just see here for six pages of blathering between Blair Besten and various CD14 staffers about a meeting she’s trying to arrange between the CM and the Delijani.

Michael Delijani has also been involved in some exceedingly shady-if-as-yet-unindicted activities in relation to the deep corruption in the office of the LA County Assessor as personified by former assessor, now jailbird, John Noguez. The details are too involved to discuss here, but essentially Noguez reduced zillionaires’ property tax bills in exchange for campaign contributions, and a bunch of the deals were made at fundraising events for Noguez at Michael Delijani’s house. Delijani himself gave Noguez more than $20,000, and you can draw your own conclusions from that.

As far as I can see, Michael Delijani has never been convicted of a crime related to the bribery of Noguez. And it’s true that Ruben Islas’s manslaughter charges were dropped, and also, as part of a deal in which the corporation itself pleaded guilty, Delgadillo’s criminal charges were also dropped against the firm’s principals, including Ruben “the Alexandria Hotel assassin” Islas. So in some technical sense, these guys are not criminals. But in some strong but nontechnical sense they certainly are criminals, and Blair Besten is certainly a hypocrite when it comes to these zillionaire bad BID boys.
Continue reading Historic Core BID Executive Directrix Blair Besten Seems OK With The Crimes Of Her Employers, E.g. HCBID Board Members Ruben “The Homicidal Slumlord” Islas And Michael “Asshole Buddy With Ultra-Corrupt Tax Assessor John Noguez” Delijani, Even While Claiming That “The increase in crime lowers the morale of the neighborhood”

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Complaint Filed This Morning With City Ethics Commission About Liner Law’s Failure To Disclose So-Called United DTLA As Client. Also Matthew Nichols Appears To Have Lobbied Before Incorporation Of United DTLA, Possibly Requiring Disclosure Of Actual Human Clients As Well

Last weekend I outlined what seem to be serious violations of the Municipal Lobbying Ordinance by registered lobbying firm Liner Law and its sleazeballs-for-hire Rockard J. Delgadillo and his creepy little sadly-not-imaginary playmate, Mr. Matthew T. Nichols in the course of the zillionaire downtown real estate cabal’s cowardly moronic greedheaded campaign against the Skid Row Neighborhood Council. Well, this morning I finished up an actual complaint on this matter and filed it with the Ethics Commission, and it is available on Archive.Org for your reading pleasure!

If you read my earlier article most of this material will be familiar to you, but there’s at least one major new thing, which only occurred to me yesterday. Recall that according to Delgadillo and Nichols, the client who was paying them to oppose the Skid Row Neighborhood Council was a shady anonymous Delaware-incorporated LLC known as United DTLA. According to Delaware state records, United DTLA was incorporated on March 3, 2017.

Matthew Nichols monitoring a City meeting on SRNC formation on February 15, 2017, almost three weeks before United DTLA was even incorporated. This is potentially huge! Click to enlarge.
This means that if and when Liner, Matthew Nichols, and Rockard Delgadillo file their required client disclosures for lobbying that they carried out after March 3, they’re going to disclose nothing more than United DTLA, that shady anonymous Delaware corporation. However, that shady anonymous Delaware corporation did not exist on February 15, 2017, on which day Matthew T. Nichols attended a Town Hall meeting about the Skid Row Neighborhood Council sponsored by the Department of Neighborhood Empowerment. And according to the definition of “lobbying activity” found in the Municipal Lobbying Ordinance at LAMC §48.02, the following is included:

… attending or monitoring City meetings, hearings or other events.

So if Matthew Nichols was carrying out compensated lobbying activities on February 15 but his putative client wasn’t even conjured into existence until March 3, he’s going to have to disclose someone other than United DTLA. And what’s the chance that this other client will be anonymous? Very low, I’m guessing, since if the zillionaires already had an anonymous entity through which to hire lobbyists, why would they go and invent a new one a few weeks later? I suppose we’ll find out, although don’t hold breath, friends. The Ethics Commission moves slowly, but it certainly does move.

And another newly uncovered bit of information is that both Delgadillo and Nichols not only attended the March 22, 2017 meeting of City Council’s Rules and Elections Committee, but they both spoke. Although Nichols didn’t say much. His entire speech is quoted in the cartoon that decorates the beginning of this post. As a special bonus for reading this far, turn the page for images of the speaker cards filled out by these two dimwits and also actual audio recordings of their comments!
Continue reading Complaint Filed This Morning With City Ethics Commission About Liner Law’s Failure To Disclose So-Called United DTLA As Client. Also Matthew Nichols Appears To Have Lobbied Before Incorporation Of United DTLA, Possibly Requiring Disclosure Of Actual Human Clients As Well

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Lobbying Firm Liner LLP And Lobbyist Matthew Nichols Seem To Have Violated The LA Muncipal Lobbying Ordinance While Working Against The Skid Row Neighborhood Council On Behalf Of Shady Delaware-Incorporated Anonymous Shell Corporation United DTLA And It Appears At Least Plausible That Rocky Delgadillo Did Also

The Los Angeles Municipal Lobbying Ordinance, known to the cognoscenti as the MLO and found at Article 8 of the LAMC,11 regulates professional paid lobbyists in the City of Los Angeles.12 It also regulates so-called lobbying firms, which are companies that employ lobbyists to lobby on behalf of paying clients.13

One requirement that the MLO puts on lobbying firms and lobbyists is registration with the City.14 In particular, it is required15 that:

A lobbyist or lobbying firm shall register each client on whose behalf or from which the lobbyist or lobbying firm receives or becomes entitled to receive $250 or more in a calendar quarter for engaging in lobbying activities related to attempting to influence municipal legislation.

Note also that you might rightly wonder if the Skid Row Neighborhood Council Formation process counts as “municipal legislation.” It does, but the reason’s a little technical.16 Also, note that Liner LLP is a lobbying firm and they filed the required registration form for 2017, listing all their clients. And, although Rocky Delgadillo is employed by Liner, he’s not registered as a lobbyist himself. However, when he wrote his famous letter to DONE advocating against the SRNC he wrote as a Liner employee.

It’s almost certain that Liner received the negligible sum of $250 from their client, United DTLA, for their services. According to the MLO,17 then, Liner is required to disclose “The client’s name, business or residence address, and business or residence telephone number” as well as “The item or items of municipal legislation for which the firm was retained to represent the client.” But look again at Liner’s registration form. There is nothing there about their client, United DTLA.

Naturally, though, it’s possible that lobbying firms might add clients after they file their annual registrations. In this case they registered on January 1, 2017, but certainly didn’t start representing United DTLA until around February and quite possibly not until March. The law has a procedure for this kind of thing:18
Lobbyists and lobbying firms shall file amendments to their registration statements within 10 days of any change in information required to be set forth on the registration statement.

Take yet another look at Liner’s registration form. You can see that it was amended on April 27, which is long after Liner’s representation of United DTLA began, but there is no mention of this client. This is the first likely violation of the MLO arising from Liner’s anti-SRNC work.
Continue reading Lobbying Firm Liner LLP And Lobbyist Matthew Nichols Seem To Have Violated The LA Muncipal Lobbying Ordinance While Working Against The Skid Row Neighborhood Council On Behalf Of Shady Delaware-Incorporated Anonymous Shell Corporation United DTLA And It Appears At Least Plausible That Rocky Delgadillo Did Also

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The San Pedro BID Is Paying BID Consultant Edward Henning Only $20,000 To Handle Their Impending Renewal. This Is 64% Less Than The Fashion District Will Pay Urban Place Consulting And 75% Less Than The South Park BID Will Pay Tara Devine. Why The Huge Variation In Compensation For A Job Whose Elements Are Delineated By The City?

You may recall that Edward Henning is an engineer who works with a number of BID consultants on BID establishment and renewal, writing the engineer’s reports required by Streets and Highways Code §36622(n). I’ve previously reported, e.g., that he seems to get paid about $9,000 for writing these things.19 Well, TIL that Ed Henning is also a BID consultant his own self!

The story begins with Lorena Parker, executive director of the San Pedro Historic Waterfront BID, sending me the contract that Ed Henning and her BID signed for consulting services, along with some ancillary information:

These materials are also available on the Archive, which is useful because of OCR and so forth. And that’s today’s goodies. Turn the page for discussion!
Continue reading The San Pedro BID Is Paying BID Consultant Edward Henning Only $20,000 To Handle Their Impending Renewal. This Is 64% Less Than The Fashion District Will Pay Urban Place Consulting And 75% Less Than The South Park BID Will Pay Tara Devine. Why The Huge Variation In Compensation For A Job Whose Elements Are Delineated By The City?

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Urban Place Consulting Set To Earn $55,712.20 For Dealing With The 2017/2018 Fashion District BID Renewal Process According To Contract, Which May Also Shed Light On The Intersection Between BID Consultancy And L.A.’s Muncipal Lobbying Ordinance

The Fashion District BID in Downtown Los Angeles is set to expire at the end of 2018. This means that they’ll be collecting petitions roughly in the first quarter of 2018 and going to City Council approximately in the Summer of 2018. The process is complicated for property-based BIDs and usually requires a consultant, and the consultant has to start early. The Fashion District is using Urban Place Consulting.20 Work began on the process in January 2017.

Thanks to the competence, kindness, and evident commitment to transparency of the Fashion District BID’s executive director, Rena Masten Leddy,21 we have copies of (at least most of) the FDBID’s contract with UPC22 as well as the first three months worth of invoices. You can get these:

Crucially, the contract reveals that the Fashion District will pay UPC more than $55,000 over the course of the two year process. The contract is supposed to include a schedule of hourly rates and the invoices are supposed to include an hourly breakdown, but, at least so far, they do not.

Apart from the general interest created by the essential role that BID renewal plays in the life cycle of BIDs, this kind of data is also crucial to my ongoing study of the intersection between the BID renewal process in Los Angeles and the Municipal Lobbying Ordinance. Turn the page for a brief discussion of those issues as well as a brief outline of the renewal process itself.
Continue reading Urban Place Consulting Set To Earn $55,712.20 For Dealing With The 2017/2018 Fashion District BID Renewal Process According To Contract, Which May Also Shed Light On The Intersection Between BID Consultancy And L.A.’s Muncipal Lobbying Ordinance

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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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How I Reported Shadowy BID Consultant Tara Devine To Los Angeles City Attorney Mike Feuer For Knowingly And Fraudently Deceiving Mike Bonin With Regard To A Material Fact Pertinent To The Establishment Of The Star-Crossed Venice Beach BID

“I’ll be damned if I’m ever going to say, ‘It’s not my job,’” Feuer told the Times editorial board. We like that attitude. All L.A. residents should.
If you want to skip the explaining and go straight to the complaint, here it is.

Friends, take a look at the exceedingly fascinating LAMC § 48.04(B). This lovely little slab of ethicalliciousness illegalizes any occasion when a lobbyist might:

Fraudulently deceive or attempt to deceive any City official with regard to any material fact pertinent to any pending or proposed municipal legislation.

And of course, you recall what a lobbyist is, it’s a technical term in this setting.23 Lobbyists are defined in LAMC §48.02 to be:

any individual who is compensated to spend 30 or more hours in any consecutive three-month period engaged in lobbying activities which include at least one direct communication with a City official or employee, conducted either personally or through agents, for the purpose of attempting to influence municipal legislation on behalf of any person.

Well, as you may recall, I spent the last two months assembling a highly detailed argument that Tara Devine met this definition. If that’s right, and I certainly think that it is, she’s also forbidden from fraudulently deceiving Mike Bonin, e.g., about material facts in regard to the formation of the Venice Beach BID which, as I’m sure you know, requires legislation for the BID to be brought into existence.

The argument is that she got everyone to believe that it was required under state law to include commercially zoned properties in the BID, even though not only is this not true, not only did she know it was not true, but her having convinced everyone of this led to more properties being in the BID, which increased the amount of money under the control of her clients, the Venice Beach Property Owners Association. If you’re still interested enough to follow me into the weeds, turn the page!
Continue reading How I Reported Shadowy BID Consultant Tara Devine To Los Angeles City Attorney Mike Feuer For Knowingly And Fraudently Deceiving Mike Bonin With Regard To A Material Fact Pertinent To The Establishment Of The Star-Crossed Venice Beach BID

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