Mayor Balancing the Needs of Labor and Business Interests

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Call it a mixed bag.


In his first year in office, Los Angeles Mayor Antonio Villaraigosa has managed to rack up some accomplishments on the business front, especially in pushing major development projects. That and his focus on education a key concern for employers have earned him some positive marks from the business community.


But business leaders say they would like to see more of a focus on their issues from Villaraigosa in the next few months. And they are disappointed that he has not opposed what they see as anti-business laws coming out of the City Council.


Still, given Villaraigosa’s popularity and his highly public efforts to market and bring funds to the city, the criticism has been muted. Also, the business community largely supports his goal of gaining more control over the Los Angeles Unified School District.


But there is criticism nonetheless.


“We’re pleased with the energy level he’s brought to the job and with the leadership he’s taken on infrastructure and education. But we don’t think that he has a clear business agenda or strategy, and we’d like to see him develop that,” said Ron Gastelum, executive vice president of the L.A. Area Chamber of Commerce.


The chamber and other business groups are now drafting some recommendations they planning to present to Villaraigosa later this summer. Gastelum refused to disclose what they are. The recommendations aren’t intended as criticism of the mayor, Gastelum said, but rather an effort to get Villaraigosa’s attention.


In an interview last week, Villaraigosa said he would welcome any input from the business community. But he took issue with the claim that he’s lacking a clear business agenda.


“We have to attract new business and tax revenues to the city and we have to do that by supporting key industries: trade, tourism and entertainment,” Villaraigosa said. “These are the industries that are key to the vitality of this city.”



Myriad accomplishments


In a report, the mayor’s business team said that it has helped close dozens of deals resulting in $150 million in business capitalization and/or investment in Los Angeles and roughly 3,000 jobs retained, grown or attracted to the city.


One of those efforts is relocating Sunrider International, a manufacturer of herbal products based in Industry, to Los Angeles, by offering assistance with permitting and other incentives. The company brought 500 jobs with it.


Villaraigosa personally cited other accomplishments of his administration over the past year. Among these: downtown projects like the Grand Avenue plan, a convention center hotel and the L.A. Live! project next to the Staples Center. Villaraigosa also pointed to deals that cleared the way for redevelopment of the Mid-Town Shopping Plaza south of Hancock Park and the Valley Plaza in North Hollywood.


“It’s central that we prioritize our efforts on larger projects that deliver a great deal of bang for the buck,” Villaraigosa said.


Last week, the mayor added, he sat down with the president of Costco Wholesale Corp., to find new Costco locales throughout the city. “We’re going to compete with any city in the region to ensure that we’re doing whatever we can to support and attract great businesses like Costco.”


Villaraigosa also has played an active role in marketing Los Angeles to businesses and convention planners, including personally calling several convention organizers. Officials with the non-profit L.A. Inc. formerly the Los Angeles Convention and Visitors Bureau credit the mayor for helping close agreements reached over the past year for 22 future conventions.


But Villaraigosa has drawn the highest marks from business for his efforts to bring more state and federal funds to Los Angeles.


“He’s visiting Sacramento and Washington D.C. seeing to it that Los Angeles gets its fair share,” said Bob Scott, chairman of the Valley Industry and Commerce Association.


Scott and other business leaders cited Villaraigosa’s lobbying to get several billion dollars in public transit and port-related funds for the Los Angeles region in the massive infrastructure bond package that’s on the November ballot.


Some business leaders say Villaraigosa has not been forceful enough with the City Council, which over the past year has passed ordinances requiring major grocery stores to retain workers after ownership changes and a moratorium on condominium conversions by owners of downtown residential hotels.


The council is also mulling requiring commercial building owners to provide higher wages and benefits to security guards and requiring hotels along Century Boulevard near Los Angeles International Airport to pay their workers the city’s living wage.


“We were disappointed with his signing of the grocery worker retention ordinance,” Scott said. “He and the council think they are helping workers, but they are probably scaring away more revenues and jobs than they are generating. It makes the cities of Burbank and Calabasas all that more attractive.”


Villaraigosa defended his signing of the grocery worker retention ordinance and condo conversion moratorium, saying it’s part of his balancing act as mayor.


“I’m really aggressive about bringing businesses to Los Angeles, about easing permitting for development projects,” he said. “But I’m also very keen on the need to grow and prosper together. This must be a business-friendly city, but also one that balances the needs of businesses with the health and vitality of the people who live in it.”

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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