L.A. vs. LA28: Could the City Sue Over Olympic Costs?

L.A. on the Record: Olympic Costs and a Potential Lawsuit

With the 2028 Summer Olympics drawing nearer, the Los Angeles City council remains locked in negotiations with LA28, the private committee overseeing the games, regarding the financial responsibility for additional city services required to host the event. Hundreds of millions of taxpayer dollars are at stake, and the city has missed its own Oct. 1 deadline for finalizing an “Enhanced City Resources Master Agreement” contract, now considering legal action.

The potential for a lawsuit against LA28 was discussed Monday during a meeting of the council’s ad hoc Olympics committee, where members conferred “with its legal counsel relative to possible initiation of litigation.” Though, councilmember Bob Blumenfield stated after a lengthy closed-door session that “there was no advice to move forward on litigation.”

The core of the dispute revolves around “enhanced services” – costs for security, trash removal, traffic control, and paramedics that exceed typical city provisions. While the Olympics have been repeatedly presented as a “zero cost” event, with reimbursements from LA28 and the federal government, the city faces potential financial strain given current budget challenges.

Security is anticipated to be a major expense, requiring collaboration between the LAPD and various local, state, and federal agencies.City Administrative Officer Matt Szabo cited the dodgers’ 2024 World Series victory parade – which resulted in nearly $2 million in reimbursements to the city for related services – as a comparable, smaller-scale example.

A senior city official,speaking anonymously,indicated that while an “irresolvable impasse” hasn’t been reached,litigation remains a viable option to ensure full reimbursement. Daily meetings are ongoing, described as “intense and focused.”

In a joint statement, the city and LA28 affirmed that “all parties are working actively at the table to finalize the [ECRMA] that will ensure reimbursement of the city’s costs required by the 2028 Games.” Szabo emphasized the importance of securing a favorable agreement, stating, “This needs to be the right agreement for the city.”

The city is also seeking financial support from the federal government, with President Trump’s “Big Lovely Bill” allocating $1 billion for reimbursement to states.

Los Angeles News Roundup: Affordable housing Investigation, Bass’s Directive Formalized, and Watchdog’s Departure

Here’s a summary of key developments in Los Angeles city and county government this week, including a federal investigation into an affordable housing deal, the permanent adoption of Mayor Bass’s streamlined approval process for affordable housing, and the retirement of a long-serving county watchdog.

affordable Housing Deal Under Scrutiny

A federal real estate investigation has emerged concerning a property in Cheviot Hills. According to prosecutors, the property was initially purchased for $11.2 million and then quickly sold to Weingart for $27.3 million. Weingart, a non-profit organization, utilized public funds to finance the purchase and subsequent conversion of the site into housing for individuals experiencing homelessness. The investigation led to the resignation of Kevin Murray from the L.A. County Affordable Housing Solutions Agency board. https://www.latimes.com/california/story/2023-12-13/kevin-murray-weingart-affordable-housing-investigation

Mayor Bass’s Affordable Housing Initiative Becomes Law

The Los Angeles City Council has formally approved an ordinance solidifying Mayor Karen Bass’s Executive Directive 1. This directive, initially issued as an emergency measure in 2022, expedites the planning department’s approval process for 100% affordable housing projects. The ordinance now makes this fast-track process a permanent fixture of city law,aiming to accelerate the development of much-needed affordable housing units. https://www.latimes.com/california/story/2023-12-12/karen-bass-affordable-housing-directive-becomes-law

Traffic safety Advocate Arrested for Painting Crosswalk

A member of People’s Vision Zero, a traffic safety advocacy group, was arrested and cited on sunday while independently painting a crosswalk in Westwood. This incident highlights the ongoing frustration among activists regarding delays in the city’s implementation of pedestrian safety improvements. The group argues that critical safety measures, like marked crosswalks, cannot wait for bureaucratic processes and are taking direct action to address perceived shortcomings. https://www.latimes.com/california/story/2023-12-11/traffic-safety-advocate-arrested-painting-crosswalk-los-angeles

L.A. County Inspector General Retires, criticizes Oversight

Max Huntsman, the L.A. County Inspector general who oversaw the Sheriff’s Department for 12 years, has announced his retirement. In a farewell letter, huntsman sharply criticized county leaders, alleging they consistently disregarded his office’s efforts to provide effective oversight. This raises concerns about accountability and transparency within the county government. https://www.latimes.com/california/story/2023-12-13/la-county-inspector-general-max-huntsman-retires-criticism

Quick Hits

* Inside Safe Progress: Mayor Bass’s “Inside Safe” program, aimed at addressing homelessness, expanded its reach this week to Downtown L.A., South L.A., Exposition park, Hollywood, Silver Lake, North Hills, Pacoima, Woodland Hills, Shadow Hills, and Van nuys, successfully bringing over 70 individuals indoors.
* Upcoming Meetings: The city’s Ethics Commission is scheduled to meet next Wednesday. The City Council is currently in recess and will reconvene on January 7th.

Stay in Touch

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