Corruption story gets more interesting *

The L.A. Times investigative team chasing the City Hall corruption story is out with a piece that says an engineering company, URS, has told the feds it lost business at LAX after refusing to contribute to Mayor Hahn's effort to defeat Valley secession. The company's executives also told prosecutors that the overture to donate originated with airport commissioner and Hahn fundraiser Ted Stein, and that they were told URS would "face serious problems" if they did not contribute. URS complained directly to Hahn about being improperly pressured, the Times' sources say. Stein and Hahn deny any wrongdoing. The story also says that harbor officials have received subpeonas this week to appear before federal and local grand juries looking into allegations of a "pay to play" environment at City Hall.

And: Hahn followed up with a round of media interviews Friday, telling the Daily News to expect an announcement soon on Stein's future and the Daily Breeze that Stein won't be fired but will be allowed to decide on his own if he should leave. Hahn allies and some city council members say that the controversy around Stein has become a liabliity for the mayor. Hahn also sat for Fox 11.