Villaraigosa Advisers Span Labor, Business

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If Antonio Villaraigosa manages to hold on to his substantial lead and become L.A.’s new mayor on May 17, he will bring with him a core group of confidantes some of them lifelong friends from labor and politics, others part of an expanding circle of business advisers.


But like so much about Villaraigosa, it’s dangerous to read too much into his associations. His style is to reach into different camps, listen to their views and come to his own conclusions.


Entrepreneurs like fast-food entrepreneur Andrew Cherng and mortgage king Roland Arnall have little in common with longtime labor activists like Maria Elena Durazo or progressive politicians like Assembly Speaker Fabian Nu & #324;ez, City Councilman Martin Ludlow or state Assemblywoman Karen Bass.


“His closest advisers aren’t all of the same ideology and they often have

conflicting agendas,” said Jimmy Blackman, chief of staff for Villaraigosa’s City Council office. “In many cases, the only way these people know each other is through Antonio.”


Although labor leaders are among Villaraigosa’s closest and most enduring advisers, he doesn’t always side with them on policy. Last fall, Villaraigosa voted against the plan by incumbent Mayor James Hahn and City Councilwoman Cindy Miscikowski to overhaul Los Angeles International Airport, despite near unanimous support for the plan among labor.

“I’m willing to say no to labor when it’s for the greater good of the city,” Villaraigosa said at the time and has since repeated.


This view has cost Villaraigosa support among labor leaders that he grew up alongside. Durazo, who has been described as Villaraigosa’s comadre, hasn’t actually endorsed anyone for mayor even though she is one of his most longstanding allies, and speaks with him regularly.


Her husband, L.A. County Federation of Labor chief Miguel Contreras, has endorsed Hahn, who placed Contreras on the commission overseeing LAX in 2003.



‘Inner circle’


Along with Durazo, Villaraigosa’s inner circle of seven or eight closest advisers includes Nu & #324;ez, Ludlow, County Supervisor Gloria Molina, former city commissioner and now campaign volunteer Cynthia Ruiz and attorney and lifelong friend Jesus Qui & #324;ones.


Since he’s been on the City Council, the group has been expanded to include staff members like Blackman, Deputy Chief of Staff Lisa Sarno and policy consultant Jim Bickhart.


“He will take some input, come to a decision in his gut and then run that decision by his advisors,” said transportation guru Nick Patsaouras, another confidante. “I tell him the facts, even if they are not the most pleasant in the world,” Patsaouras said.


Among a wider circle of voices Villaraigosa listens to periodically are former Department of Water & Power chief David Freeman, labor attorney and activist Larry Frank and former L.A. Mayor Richard Riordan.


The makeup of this group has changed frequently as Villaraigosa’s career has moved from labor leader to transit official to Assembly Speaker and then recently to City Councilman.


While the break with labor during the campaign surely hurt him, his longstanding ties with Contreras may help them patch things up if he wins.


Another on-again, off-again relationship has been with Hertzberg, with whom he patched up a falling-out after the primary ended. Earlier this month, Hertzberg gave his endorsement and there’s been an infusion of advisors from the Hertzberg camp, including attorney and frequent city commissioner Lee Kanon Alpert.


“There is no rigid structure among his advisors, no preset meetings,” just a lot of informal calls, quick stops for coffee and impromptu meetings, said Blackman. “When he has an idea he wants to run by someone, he reaches for his Trio (combination cell phone/Palm Pilot) and calls them up.”


It’s a style more reminiscent of Riordan, though less centered on the private sector. Riordan was well-known for turning to his wealthy friends in the investment world often using these contacts to bypass official channels in the city bureaucracy.


By contrast, incumbent Mayor James Hahn tends to rely on his paid staff. Hahn does have a small group of outside advisors most prominent among them is attorney George Kieffer, the former chairman of the L.A. Area Chamber of Commerce.


Villaraigosa himself did not return calls seeking comment. In a Business Journal interview earlier this year, he said that if he were elected mayor, attracting and retaining business would be “a focus of my administration.”


He said he would consult frequently with the business community, putting together a council of economic advisers “to address the macro issues, like how we build out the economy and how we prepare for the 21st century.”



Political ties


Villaraigosa emphasizes his ability to carry weight in Sacramento and Washington, and his political allies range from Assembly Speaker Nu & #324;ez, former U.S. Housing and Urban Development Secretary Henry Cisneros to City Councilmember Jack Weiss (who was one of the first to endorse him).


Former state Assemblyman Richard Katz, who first encountered Villaraigosa on the board of the predecessor to the Metropolitan Transportation Authority, said he talks with him frequently on transportation and political issues.


“If he has a question, he picks up the phone and if I see something that might be helpful, I’ll pick up the phone and tell him,” Katz said. “It’s also a two-way street. I’ve called him several times seeking advice or we’ve exchanged advice over coffee.”


Early in his legislative career, Villaraigosa also made a point of reaching out to the business community. As Assembly Speaker, he drew on the advice of billionaire businessmen Eli Broad and Ron Burkle. Both supported him during his first mayoral run.


After he lost, Villaraigosa went to work briefly for Broad, who was trying to get a biomedical park near County-USC Medical Center off the ground. Broad, though, is backing Hahn this time.


More recently, Villaraigosa has formed a close friendship with Cherng, co-founder of the Panda Express restaurant chain. And earlier this month former basketball superstar and inner city investor Earvin “Magic” Johnson endorsed him and promised to provide advice on how to turn around blighted inner city areas, among other business issues.


At times, some of Villaraigosa’s relationships have turned controversial. In last week’s mayoral debate, Hahn brought up Villaraigosa’s ties to Arnall, founder of Ameriquest Capital Corp., which is under investigation in several states for allegations of deceptive mortgage practices. Villaraigosa has since tried to distance himself.


Hahn also mentioned contributions from Cadiz Inc., a Santa Monica-based company that launched a failed bid to build an underground water reservoir beneath the Mojave Desert. Cadiz chief executive Keith Brackpool has been an informal advisor to Villaraigosa on water issues.

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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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