News of the Week

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NEW MANAGEMENT: The Los Angeles City Council unanimously voted to turn over management of the Los Angeles Convention Center to L.A. Live operator Anschutz Entertainment Group, despite objections that AEG might gain an unfair advantage in filling its hotel rooms while booking conventions. AEG owns the JW Marriott and Ritz Carlton hotels at L.A. Live. Representatives of other downtown L.A. hotels told council members that they were concerned that AEG’s hotels would have an unfair advantage.

CONTRACT: The governing board of the California Science Center, landlord of the Los Angeles Memorial Coliseum, has approved giving USC control of the Coliseum under a long-term lease. The deal has been criticized by officials at the nearby Science Center, California African American Museum and Exposition Park, which fear the loss of parking revenue.

JOB FIGURES: Los Angeles County’s unemployment rate fell to 9.6 percent in May, down from 11.1 percent a year ago and 9.9 percent in April. Data from the state’s Employment Development Department indicates that the employment gains were tempered by unexpectedly large job losses in the entertainment industry, which caused employer payrolls to shrink by more than 15,000 jobs. Despite the decline, the county’s two largest cities, Los Angeles and Long Beach, still have double-digit unemployment of 10.2 percent.

EDISON LAYOFFS: Southern California Edison said that it will eliminate 600 nonunion jobs this summer as it winds down operations at the soon-to-be-shuttered San Onofre nuclear power plant. The division of Rosemead’s Edison International said the facility’s workforce eventually will be cut from 1,500 to 400 by next year. The company plans to negotiate with unions on transition plans for additional affected union members. Edison laid off about 730 San Onofre employees in August after two nuclear units were taken off line in January 2012 when a leak was discovered.

PILOT FILMING: The number of TV pilots shot in Los Angeles picked up dramatically this year, thanks to an industrywide boom in pilot production. Permitting agency FilmLA said 96 broadcast and cable television pilots were filmed in the region during the fall-spring pilot production season. Production days rose 40 percent compared with the same period last year. Despite the increase, Los Angeles still faced challenges from runaway production with only an estimated 52 percent of pilots filmed in North America taking place here.

ACQUISITION: BreitBurn Energy Partners LP said that it will acquire interests in a pair of Whiting Petroleum Corp. oil fields in Oklahoma and related assets for about $860 million. The L.A. oil and gas partnership said the acquisition creates long-term value and will significantly boost distributable cash flow to investors. The deal, which will be funded from an expanded credit facility, far surpasses BreitBurn’s earlier announced $500 million acquisition target for 2013 as well as increases the company’s geographic presence to nine states.

ROCK SUIT: Blackheart Records Group Inc., Joan Jett’s label, has sued Hot Topic Inc. in New York federal court, accusing the apparel chain of not compensating it for use of the Blackheart name for a lingerie line. The City of Industry retailer, which has compensated Jett in the past for use of her image on T-shirts, contends that Blackheart Records abandoned its trademark filings years ago for apparel and accessories, and Hot Topic now owns 11 registered trademarks for use of the Blackheart name.

COURT RULING: Alan Casden has won a court ruling against a former partner seeking to recoup losses from a failed real estate venture. A judge in U.S. District Court for the Southern District of New York said that the L.A. developer did not owe $12 million to Madeleine LLC for an allegedly defaulted loan. Madeleine, a subsidiary of New York’s Cerberus Partners LP, provided a $25 million loan in 2002 in a joint venture of Madeleine, Casden and Apartment Investment and Management Co. Inc. of Denver. Casden agreed to give up proceeds from half of his 20 percent stake in the joint venture in exchange for the loan.

CIVIL SUIT: The Securities and Exchange Commission has charged Burbank medical imaging device developer Imaging3 Inc. and Chief Executive Dean Janes with civil fraud. The regulator contends that during a 2010 conference call with analysts, Janes improperly downplayed concerns that the Food and Drug Administration had with the company’s experimental three-dimensional scanner. Imaging3 filed for Chapter 11 bankruptcy last year.

SOLD: CIM Group said that it has sold Sunset Vine Tower, a 20-story, 64-residence luxury apartment building, to an unidentified buyer. The Hollywood-based real estate developer, which also owns Hollywood & Highland Center, did not disclose financial terms of the deal. Sunset Vine Tower, which opened in 2010, was redeveloped by CIM on the former site of a fire-damaged 1960s-era office building.

EARNINGS: AeroVironment Inc. reported a fiscal fourth quarter net loss of $795,000, compared with net income of $17.8 million a year earlier. Revenue fell 51 percent to $54.1 million. … KB Home reported a fiscal second quarter net loss of $3 million, compared with a year-earlier loss of $24.1 million. Revenue rose 73 percent to $524 million.

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