Did the Public Get the Best Deal?

The recent settlement of a lawsuit alleging that the Hollywood Chamber of Commerce mismanaged funds earmarked for the upkeep of the Hollywood sign and the Walk of Fame raises questions. The appearance of conflict of interest has tainted the process, and while the agreement may improve management of these landmarks, the public had a right to expect more.

The Hollywood Chamber of Commerce has managed the upkeep of the Hollywood Walk of Fame (the decorative sidewalk along Hollywood Boulevard) and the Hollywood sign, (which looms above Griffith Park) since 1978, when the chamber raised funds to save the sign from demolition. The chamber oversees two trusts that maintain these public properties with up to $100,000 earned annually from sales of the lucrative trademarks to the sign and the walk of fame.

Last year, after news reports of allegations that the chamber misused $224,000, the state sued. The settlement requires the chamber to repay funds to the trusts and mandates the appointment of city representatives to each trust. But the agreement still leaves the chamber substantially in control.

Equally troubling, that settlement was quietly penned following a closed-door meeting between Atty. Gen. Dan Lungren and chamber members--one of whom is a well-known Lungren political ally. City parks officials have long wanted to take control of the trust managing the Hollywood sign and possibly the Walk of Fame. That outcome would have been better.