Land + Corruption = L.A.

Government redevelopment agencies? Most folks don't even know they exist, much less what they do. Frankly, the notion of obscure government entities quietly pairing public money with private developers should send shivers down any taxpayer's spine. And guess what? The LAT found widespread instances of corruption, questionable spending, and poor accountability. Here's how the front-page piece opens:

It was a redevelopment deal with an unusual form of payment: plain white envelopes stuffed with cash and delivered to a go-between at a preschool. And that was only part of what developer Randy Wang said he paid to Temple City officials who "repeatedly solicited bribes" in return for their support of his $75-million Piazza mall project. His allegations led to criminal charges against then-Mayor Judy Wong and three other people, all but one of whom have pleaded guilty or no contest to bribery, perjury or other crimes. Wong recently was sentenced to 16 months in state prison, the harshest penalty so far.

Proponents say that redevelopment has helped revive neighborhoods, including Pasadena's Old Town and San Diego's Gaslamp Quarter. But those shining examples mask all the disasters.

Redevelopment agencies in California multiplied after 1978, when Proposition 13 limited local governments' power to raise taxes and prompted them to find new sources of revenue. But many smaller cities that established agencies could not afford skilled people to run them. "Just because someone is running it doesn't mean they're qualified to manage large amounts of money," said Stanislaus County Supervisor Jeff Grover about the redevelopment agency in Riverbank, a city of 22,000 in the Central Valley.

More by Mark Lacter:
American-US Air settlement with DOJ includes small tweak at LAX
Socal housing market going nowhere fast
Amazon keeps pushing for faster L.A. delivery
Another rugged quarter for Tribune Co. papers
How does Stanford compete with the big boys?
Those awful infographics that promise to explain and only distort
Best to low-ball today's employment report
Further fallout from airport shootings
Crazy opening for Twitter*
Should Twitter be valued at $18 billion?
Recent Politics stories:
Obama meets with victims of LAX shooting*
Maria Elena Durazo profile names a key name *
President Obama's arrival timed to rush hour (again)
Obama will visit DreamWorks Animation, Magic's home
Some USC students wish they were invited to Bush speech

New at LA Observed
On the Media Page
Go to Media

On the Politics Page
Go to Politics
Arts and culture

Sign up for daily email from LA Observed

Enter your email address:

Delivered by FeedBurner


Advertisement
Mark Lacter
Mark Lacter created the LA Biz Observed blog in 2006. He posted until the day before his death on Nov. 13, 2013.
 
Mark Lacter, business writer and editor was 59
The multi-talented Mark Lacter
LA Observed on Twitter and Facebook