Why is Michael Ovitz giving Beverly Hills a bronze sculpture by renowned American artist Joel Shapiro?

Because he needs to replace the city’s Shapiro bronze worth $61,000 he took home.

In an apparent misunderstanding, Ovitz two years ago claimed a sculpture that was in the atrium of the former headquarters of Creative Artists Agency, which he built with several partners in 1989.

Beverly Hills requires developers of buildings with public spaces to install art. Developers pay for the art, but it is considered a donation to the city.

Now, after nearly two years of negotiations, the former Hollywood superagent has agreed to provide a replacement at least as expensive.

“He wasn’t aware he couldn’t remove the sculpture,” said city Recreation Services Manager Brad Meyerowitz, who took part in the negotiations.

A bronze in Shapiro’s signature style featuring rectangular shapes was installed and displayed for years in the atrium of the I.M. Pei-designed building at 9830 Wilshire Blvd.

However, when CAA moved to Century City in 2007 and Sony BMG Music Entertainment leased the building in 2008, the music company closed the lobby from the public. So, Ovitz, who left CAA in 1995 and is now a private investor, removed the piece. It wasn’t until summer 2009 that officials realized it was missing.

Ovitz, who is said to have a world-class contemporary art collection with pieces by Pablo Picasso, Jasper Johns and others, told the city’s Fine Arts Commission at a fall meeting that he was too attached to the sculpture to return it, said commission Chairwoman Judith Friedman.

Instead, he struck a compromise by offering to replace it with a similar one by Shapiro.

“This is the first time we’ve had something like this happen,” Friedman said.

The city is looking for an appropriate new location for the sculpture, which Ovitz already has purchased.

Now, the Fine Arts Commission is amending the ordinance’s wording to make clear that once public art is donated it cannot be taken back.

“We are changing (it) so that this never happens again,” Friedman said.

Attempts to reach Ovitz through his attorney were unsuccessful.