Governor Committed to California’s Air Bases

Gov. Arnold Schwarzenegger pledged his support for Los Angeles Air Force Base on Tuesday, promising to do everything in his power to preserve the facility and keep other California bases out of the upcoming base realignment and closure process, reported the Daily Breeze. In a speech at Northrop Grumman in Redondo Beach, he said in previous base closure rounds, California “paid a heavy price,” losing 24 bases and 99,000 jobs. President Bush is expected by March 15 to name a nine-member federal commission, which will visit and analyze bases recommended for closure by May 16.

Developers Unveil Vision for Downtown


Developers on Tuesday unveiled their first scale model of a $1.2 billion downtown project to transform the area around the Walt Disney Concert Hall into a bustling nightlife district featuring gardens and envisioned as the city’s “great new gathering place,” the Daily News of Los Angeles reported. Preliminary proposals call for the creation of a 16-acre park in the Civic Center as well as nearly 2,400 housing units, a large banquet/event facility and 600,000 square feet of office-tower space.

Rains Douse Agriculture Livelihoods


Steady rains over the past two months are drowning the livelihoods of farmworkers and fruit stand owners from Santa Clarita through Ventura County’s Heritage Valley, reported the Daily News of Los Angeles. According to the Ventura County Agriculture Commissioner’s Office, the winter storms have caused more than $51.9 million in crop damage, including $6 million to citrus and $4 million to avocados, since Jan. 19. That number will increase as officials survey losses from the past week.

Web Ad Sales Click to Record $9.6 Billion in 2004


Online ad sales surged 32 percent last year over 2003, setting a record that has stood since the height of the Internet bubble, said The Hollywood Reporter. The gain suggests the Internet is taking market share away from TV and other established media. Marketers spent $9.6 billion to advertise on the Net last year, up from $7.3 billion in 2003. In the fourth quarter of 2004, $2.2 billion was spent, an increase of 24 percent over the comparable quarter a year earlier.

State Probing Two Title Insurers


State Insurance Commissioner John Garamendi said Tuesday that he was investigating title insurers Fidelity National Financial Inc. and LandAmerica Financial Group Inc. as part of a probe into alleged kickbacks paid to builders, lenders and realtors in exchange for client referrals, the Los Angeles Times said. Garamendi said the companies had been involved in complex arrangements that amounted to paying bribes for referrals while jacking up the cost of title insurance for home buyers. He issued subpoenas ordering the companies to produce documents and to have their executives appear at a public hearing in April.

Hot Season May Bring Southland Blackouts


Parts of Southern California could endure blackouts this summer if the region suffers from unusually hot weather, state energy officials said Tuesday. Power supplies in areas served by Southern California Edison Co. and San Diego Gas & Electric Co. could come up short by 1.5 percent during periods of peak demand in September, according to the forecast, which was released at a special hearing of the Senate Energy, Utilities and Communications Committee. The potential for rolling blackouts like those during the energy crisis of 2000 and 2001 could be even greater if bottlenecks continue to jam the state’s overtaxed power transmission lines, the Los Angeles Times reported.

Virgin to Add Store to Hollywood & Highland


Virgin Entertainment Group Inc. will open a new entertainment-oriented “megastore” in Hollywood this fall at Hollywood & Highland to attract more shoppers, the Los Angeles Times reported. The 22,000-square-foot store, which will be announced Wednesday, will sit between Grauman’s Chinese Theatre and the Kodak Theatre. It will take space that is now occupied by a duty-free store in a 10-year, $7-million lease agreement with landlord CIM Group. Virgin’s new store will focus on the Los Angeles music scene and include a stage for live performances.

NASD Fines Piper Jaffray, Quick & Reilly Over Preferred-Fund Sales


The NASD on Tuesday fined brokerages Quick & Reilly and Piper Jaffray Cos. for giving preferred sales treatment to mutual funds in exchange for commission-generating stock trades and other payments, the Associated Press reported. The fines by the NASD are the latest in a crackdown on long-standing revenue-sharing deals between brokerages and fund companies. On Tuesday, Quick & Reilly was fined $570,000; Piper Jaffray was fined $275,000. Neither firm admitted nor denied the charges against them.

Ad Agency Execs Convicted of Fraud


Two former senior executives at advertising agency Ogilvy & Mather were convicted of conspiring to overbill the government for a campaign warning children about drugs, the Associated Press reported. Thomas Early and Shona Seifert each face up to five years in prison on multiple counts of fraud, false claims and false statements. Sentencing was set for May 16 in U.S. District Court in New York.