SUBWAY NEWS: A $4.2 billion project to build a subway between downtown Los Angeles and Westwood took a major step forward when the Metropolitan Transportation Authority approved a preliminary route plan. The recommended route would run between the Wilshire/Western Metro station to the Westwood Veterans Administration Hospital, a distance of nine miles. The board expects a one-year environmental review period, with construction starting as soon as 2013. The plan would extend the current Metro system to Beverly Hills, Century City and Westwood. A one-way trip from downtown to Westwood is forecast to take 25 minutes. Metro will pay for the project with money from Measure R, which will serve as collateral and payment for long-term bonds and federal loans.
TAXIS: Los Angeles City Council voted to maintain the status quo by extending the city’s nine cab franchises for five years, brushing aside opposition from unions and some drivers. The city won commitments from the taxicab companies to convert 80 percent of their fleets to “green” vehicles – gas-electric hybrids or cars using other alternative fuels – within the contract period. The franchises are worth $180 million in annual fare revenue from the 2,303 licensed taxis operating in the city.
MIRAMAX: Mike Lang, a former News Corp. business development executive with a background in digital media, is in talks to become chief executive of Miramax Films once the acquisition of the independent film studio closes. Lang has been helping to lead negotiations with Miramax owner Walt Disney Co. on behalf of Filmyard Holdings, whose partners include construction magnate Ron Tutor, No. 44 on this year’s list of the Business Journal’s “Wealthiest Angelenos,” and private equity fund Colony Capital. Lang is one of several candidates up for senior executive positions at the new Miramax. Filmyard partners have also held talks with Jim Packer, co-president of worldwide television for Metro-Goldwyn-Mayer.
VC UPDATE: Venture capital firms invested $206 million in local companies through 26 investments during the third quarter, according to data from Dow Jones VentureSource. The most recent quarter represents a dollar value decrease of 36 percent from the second quarter, when $324 million was invested through 30 deals. During the first nine months of 2010, more than $675 million was invested in L.A. startups, an increase of 37 percent compared with the same period last year.
BANKING: OneWest Bank, the savings and loan created last year from the assets of failed IndyMac Bancorp, has hired Joseph Otting as chief executive. Previously, Otting was vice chairman and head of commercial banking for U.S. Bank. He moved from U.S. Bank’s Minneapolis headquarters to Los Angeles in 2008 to lead the bank’s Southern California expansion, which was driven by the acquisition of several failed institutions, including California National Bank. He replaces Terry Laughlin.
PASSING: State Sen. Jenny Oropeza, D-Long Beach, has died. She was 53. The immediate cause of death was not disclosed, but she had suffered from a blood clot in her stomach and had been absent from the legislature for months. Oropeza’s name will remain on the Nov. 2 ballot as the Democratic candidate in the 28th District.
ACQUISITION: 3M Co. closed its tender offer to buy shares of Pasadena-based Cogent Inc. after securing 65 million shares or 72 percent of Cogent’s outstanding stock. The price was $10.50 per share. 3M, an industrial conglomerate in St. Paul, Minn., will eventually buy all the shares and Cogent, a maker of security identification systems, will become a 3M subsidiary. Cogent Chief Executive Ming Hsieh sold his 39 percent stake in the tender offer.
RETAIL: Sport Chalet has secured a new $65 million credit agreement that will lower its annual interest expense by about $800,000, the company announced. Lender Bank of America increased available credit to $65 million from $45 million and granted La Canada-Flintridge-based Sport Chalet lower interest rates and more flexible terms. The new agreement lasts until October 2014.
JOBS REPORT: The unemployment rate in Los Angeles County remained unchanged in September at 12.6 percent. The county posted a modest gain of 11,600 payroll jobs, mostly new teachers for the start of the school year. Gains in school jobs were partly offset by drops in construction, leisure and hospitality, and manufacturing jobs. The county’s unemployment rate was slightly higher than its 12.1 percent rate a year ago.
EARNINGS: Teledyne Technologies reported third quarter net income of $30 million, compared with $35 million the year before. Revenue rose 3.4 percent to $444 million… DreamWorks Animation SKG reported third quarter net income of $40 million, compared with $20 million a year ago. Revenue rose 40 percent to $189 million. … Jakks Pacific reported third quarter net income of $40.4 million compared with $33.7 million the year before. Revenue fell 0.5 percent to $349 million. … Amgen Inc. reported net third quarter income of $1.24 billion, down from $1.39 billion a year ago. Revenue was flat at $3.81 billion. … Avery Dennison Co. reported third quarter net income of $64 million compared with $63 million a year ago. Revenue was up 5 percent to $1.64 billion. … CB Richard Ellis Group Inc. reported net income of $57 million compared with $12.4 million in the same quarter a year ago. Revenue was up 24 percent to $1.3 billion.
CORRECTIONS
An article in the Oct. 25 edition headlined “Building Storm” incorrectly stated that the Pacific Palisades Community Council was part of an alliance with L.A. Neighbors United, which opposes proposed zoning code changes. The group is not part of the alliance, and expects to vote on its position regarding the changes this month.
An article in the Oct. 25 edition headlined “Wealthy Angeleno Loses Appeal in Trust Lawsuit” incorrectly stated Neil Kadisha’s former position at Qualcomm Inc. Kadisha was a member of the board of directors.
