STADIUM BONDS: Under a draft memorandum of understanding between the city of Los Angeles and Anschutz Entertainment Group, the developer will take more responsibility and risk for financing a $1 billion football stadium and a new wing of the Los Angeles Convention Center. The MOU would require the city to issue $195 million in bonds – which would be paid from revenue from the project – down from the $350 million first proposed. An additional $80 million in bonds would be the responsibility of AEG. If the company fails to pay the taxes necessary to cover those bond payments, the city could foreclose on AEG’s L.A. Live complex. The project could provide the city about $410 million in new revenue over a 30-year period.
ACQUIRED: Brickman Group, a national commercial landscape management company based in Gaithersburg, Md., has acquired Dworsky Cos., a large L.A. commercial landscape services firm, for an undisclosed amount. Dworsky Cos. was founded in 2002 by Dave Dworsky, who has been in the commercial landscaping industry more than 20 years. Its client list includes the Hughes Center, Sun America and Equity Office Properties.
MAYOR’S RACE: The Austin Beutner for Mayor Exploratory Committee has reported that it raised $405,034 in its first 11 weeks of operation. Beutner’s 579 donors as of June 30 include former Mayor Richard Riordan, philanthropist Eli Broad and former Los Angeles Area Chamber of Commerce Chairman David Fleming, the committee said in its first campaign finance report. Beutner is considered a strong contender to draw support from the business community. He made his fortune running a private equity firm, served as first deputy mayor and jobs czar for Mayor Antonio Villaraigosa for more than a year before resigning in April to consider a run for the office when Villaraigosa terms out in 2013.
JOBLESS RATE: Education-related layoffs pushed Los Angeles County’s unemployment rate back up to 12 percent in June and led to a drop of 9,500 payroll jobs, according to state figures. With little growth in other areas of the economy, these cutbacks forced the jobless rate up to 12 percent in June from a revised 11.9 percent in May. Seasonal layoffs in education as the school year drew to an end resulted in the loss of roughly 20,000 jobs. There also were slight declines in wholesale trade, retail employment, and state and local government. Manufacturing employment was one of the few bright spots, gaining 3,000 jobs. Business services and entertainment also posted slight increases.
ASSESSMENTS: Los Angeles County’s total property values rose during 2010 after two years of decline, according to county figures. County Assessor John Noguez said that property values in the region rose 1.5 percent to $1.1 trillion from Jan. 1, 2010, to Jan. 1 of this year. About three-fourths of the $16.2 billion jump in values came from residential sales transactions. Properties that hadn’t been sold in several years were reassessed at higher values when they sold. The increase is good news for the coffers of struggling local governments, which generally receive about 1 percent of assessed home values in property taxes.
NEW CEO: Meruelo Maddux Properties Inc. has named Matt Caverly its chief executive. He had been serving in that post on an interim basis. He has more than 20 years of experience in the real estate industry, and most recently led the acquisitions department at Hackman Capital in West Los Angeles. His appointment came as a creditors’ plan of reorganization went into effect. MMPI Acquisition LLC has bought 55 percent of outstanding shares of the L.A. company, which is a significant owner of property in downtown Los Angeles. Founder and former Chief Executive Richard Meruelo, his management team and board resigned last month as part of the reorganization.
BOLLYWOOD BUYOUT: Walt Disney Co. has offered to pay as much as $454 million to buy out the remaining half of Indian media company UTV Software Communications Ltd. Disney already owns 50.4 percent of the Mumbai company, which operates TV channels, and makes and distributes movies, TV programs and video games. The Burbank media giant is hoping that UTV will provide it greater visibility in south Asia. Under the deal, UTV Chief Executive Rohinton “Ronnie” Screwvala, a major shareholder, would become Disney’s chief of operations in India.
NEW ROLE: Response Genetics Inc. Chief Executive Kathleen Danenberg has resigned to focus on research and development at the company she helped found in 1999. She will be executive scientific and technology officer at the L.A. developer of molecular diagnostic tests. Vice President Denise McNairn will serve as interim chief executive until a replacement is found.
EARNINGS: Skechers USA Inc. reported a second quarter net loss of $30 million, compared with net income of $40.2 million a year ago. Revenue fell 14 percent to $434 million. … CB Richard Ellis Group Inc. reported second quarter net income of $61.2 million, 11 percent higher than a year ago. Revenue rose 21 percent to $1.42 billion. … DreamWorks Animation SKG Inc. reported second quarter net income of $34.1 million, 42 percent higher than a year ago. Revenue rose 38 percent to $218 million. … Northrop Grumman Corp. reported second quarter net income of $520 million, 30 percent lower than a year ago. Revenue fell 9.6 percent to $6.56 billion. … Occidental Petroleum Corp. reported second quarter net income of $1.82 billion, 71 percent higher than a year ago. Revenue rose 34 percent to $6.17 billion. … Avery Dennison Corp. reported second quarter net income of $73.3 million, 13 percent lower than a year ago. Revenue rose 2.7 percent to $1.73 billion. … Jacobs Engineering Group Inc. reported fiscal third quarter net income of $90.7 million, 377 percent higher than a year ago. Revenue rose 8 percent to $2.7 billion.
