Wednesday, April 2, 2014

Can Los Angeles Be Saved? By David Hernandez


By David Hernandez, April 2, 2014

“Can Los Angeles be saved?” is a question that transcends the passing of time, politicians and crisis.

My conclusion is an astounding yes, but with conditions to first be overcome.

The challenge facing the city is twofold, each with a long and destructive history. Both have become institutionalized and, like an evil and corroding thread, the very fabric of Los Angeles governance has it woven into the mindset of those charged with the duty to govern.

First is the “Blighted City Syndrome.” The term “blighted” has long been an official label assigned to business districts that have fallen into bad states of repair. Kind of like the “broken windows theory” on steroids except with an agenda to allow the condition to worsen.

To understand this syndrome, one must learn the process as it had existed for decades.  Once an area is officially deemed blighted, a Community Redevelopment Agency district was formed. The tax base generated by the existing blighted area was frozen at the current level. The CRA then began the process to improve and revitalize the area. Bonds are sold on the bond market to raise funds to hire developers to purchase the properties and then build new and improved districts. The CRA was not required to go to the voters in order to get approval for the bonds. Remember, the City of Los Angeles must get voter approval in order to sell bonds, but it was not so with the CRA.

The construction was done by politically-connected contractors chosen by the CRA.

The more blight, the more money to be made by those involved in the process from selling the bonds to building the structures.

This process had been in place for decades and, for the most part, unnoticed by the residents of Los Angeles.

The additional taxes coming from the improved projects did not go to provide funding for basic services such as police, fire, street services, etc. The additional revenue went to the CRA to service the debt created by the selling of the bonds.

This process created an incentive to allow the blight to spread and flourish. This program came to an abrupt halt as a result of the governor and State Assembly passing legislation to disband the CRA. This has left communities like the Valley Plaza in North Hollywood looking like a ghost town.

The mindset of those serving the city must be changed, blight was and is bad for a community and must be addressed at the onset.

Next is the “Convenience Store” scenario. After stopping at the 7-Eleven you are approached by an individual with an oblivious substance abuse problem. The individual asks for money to buy food. You respond no, and follow by saying they will just use the money for drugs. The individual responds no, they have money for drugs, they need money for food.

The City of Los Angeles seems to have money for their pet projects but wants more of your money for basic services. Just review the projects funded under the American Recovery and Reinvestment Act.

Politicians go to Washington to ask for billions for the L.A. River, but want to increase taxes to pave our streets.  

End the Blighted City Syndrome and the Convenience Store mindset and the City of Los Angeles will be saved.

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Related:  The Elder Statement: Report: L.A. in “Crisis” -- 10 Steps to Fix It

Related:  The Elder Statement: 10 Steps To Save L.A.-- The 14 + Peter Ueborroth, City Czar


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