This is how politics works. Donors get the contracts and the people get the bill.
“Furthermore, the incentive agreements were designed to encourage the development of hotels near the Convention Center. But after many years, the goal of 8,000 rooms appears to have been reached with 7,400 rooms already online and another 3,000 rooms in the pipeline that do not require any subsidies.
What is particularly galling is that Blumenfield, the chair of the Budget and Finance Committee, would sponsor a motion that would cost our cash strapped City $68 million. But then again, this is not surprising since he is the person most responsible for the City’s budget shortfall and Structural Deficit. As a self-proclaimed budget hawk who is in charge of overseeing the City’s finances, how could he even begin to approve this giveaway to the developers of this very profitable venture when the City is broke and on the brink of declaring a Financial Emergency.
L.A. is hundreds of million in deficit. Yet here are two Democrats forcing the city to lose another $68 million.
Bob Blumenfield and the $68 Million Giveaway to Hotel Developer
Jack Humphreville, City Watch, 12/5/24 https://www.citywatchla.com/la-watchdog/29975-bob-blumenfield-and-the-68-million-giveaway-to-hotel-developer
LA WATCHDOG – The City of Los Angeles is broke according to an editorial in The Times. And more than likely, the City will have to declare a Financial Emergency when it raids the already depleted Reserve Fund and its Emergency Reserve Account to cover over expenditures, additional liability claims, and revenue shortfalls.
Yet despite the City’s dire financial situation, the City Council approved a motion sponsored by Councilmen Kevin de Leon and Bob Blumenfield to enter into a Development Incentive Agreement with the developers of the Venice Hope Hotel without any discussion of the economics of this development. Pursuant to this agreement with the well-heeled developer, the City will kick back a portion of the 14% hotel tax for the next 15 to 25 years. Instead, these funds could be used for homeless services, affordable housing, the repair of our streets and sidewalks, and even deficit reduction.
The proposed hotel is located within walking distance of the Convention Center and is part of a $300 million development that includes a 300-room hotel and a 23 story, 250-unit apartment complex, both of which appear to be profitable ventures and not in need of any subsidies.
Furthermore, the incentive agreements were designed to encourage the development of hotels near the Convention Center. But after many years, the goal of 8,000 rooms appears to have been reached with 7,400 rooms already online and another 3,000 rooms in the pipeline that do not require any subsidies.
What is particularly galling is that Blumenfield, the chair of the Budget and Finance Committee, would sponsor a motion that would cost our cash strapped City $68 million. But then again, this is not surprising since he is the person most responsible for the City’s budget shortfall and Structural Deficit. As a self-proclaimed budget hawk who is in charge of overseeing the City’s finances, how could he even begin to approve this giveaway to the developers of this very profitable venture when the City is broke and on the brink of declaring a Financial Emergency.
What is now a homerun for the developer will be a grand slam if the subsidies are approved by the Harris-Dawson led City Council and Mayor Bass.
Finally, will the newly elected Ysabel Jurado oppose this pork laden giveaway that is in her Council District? Or will she use these funds for her priorities that include affordable and homeless housing and limiting the impact of climate change on underserved communities in her district?
(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee, the Budget and DWP representative for the Greater Wilshire Neighborhood Council, and a Neighborhood Council Budget Advocate.
