Business Climate in Los Angeles

In recent media coverage about the Los Angeles business climate, much attention has been given to factors contributing to the unfavorable image our city is projecting to businesses. However, little has been said about a factor that can play a key role in either enhancing or diminishing the city’s economic future--an adequate and reliable water supply, which is so vital to the commercial and manufacturing segment of our economy.

Throughout the ongoing City Council debate over water rates, council members, reacting to public sentiment, have found it politically easier to direct the Department of Water and Power to make unreasonable reductions to its capital improvements budget. This budget funds water supply enhancement and water reclamation projects--projects that ensure a reliable water supply for the future.

While it seemingly makes good short-sighted political sense to acquiesce to the wishes of constituents, does this make good business sense to delay vital water system infrastructure improvements by paying less now and paying a whole lot more later? At a time when the city needs to encourage business to remain and, in fact, expand its investment in Los Angeles, what kind of message is being sent?

The Central City Assn. agrees that Los Angeles can pay a little now or a lot more later when it comes to finally restoring a faltering water system infrastructure.

If Los Angeles abandons its responsibility to maintain its facilities, can we blame business leaders when they consider relocating existing or new jobs outside of Los Angeles? This is certainly not the time for the City Council to add concern for an adequate and reliable water supply to the city’s business climate forecast.

DONALD F. McINTYRE, President and CEO, Central City Assn. of Los Angeles