City May Drop Mall Operations
Alarmed that the City of Los Angeles is losing $1.5 million a year in the operation of its Civic Center shopping mall, Council President John Ferraro on Wednesday called for a study that could take the city out of the mall-management business.
Ferraro said it “may be desirable” for operation of the Los Angeles Mall to be transferred from the city’s troubled General Services Department to an independent property management company.
A detailed accounting recently showed that the city is losing about $1.5 million a year in the plaza next to City Hall, where the city leases space to retail shops, restaurants and banks. Many units in the mall remain vacant, while some shops have closed, often without paying rent, Ferraro said in his motion asking for a study.
Mismanagement of the mall is one of the charges facing Sylvia Cunliffe, head of the city’s General Services Department. She is now the subject of criminal and administrative investigations.
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