Rebuilding L.A. Confidence: A Herculean but Doable Task : The need now is for quick, decisive action by all elements of the city

Confidence. Restoring that psychological element is critical to rebuilding Los Angeles in the eyes of residents, the nation and the world. Volunteer cleanup crews scoured the devastated areas this weekend but they could not sweep away the images of a charred and blackened city that resembled the bombed-out skeleton of Beirut or Kuwait.

The need now is to move swiftly and decisively to rebuild businesses and homes lost during the two days of rioting that damaged many parts of the city, especially South Los Angeles. The creation of Rebuild L.A., headed by Peter V. Ueberroth, is a positive step. He has vowed to make Los Angeles better than it was before the civil violence. Easy to say, tough to do.

Some question how effective Ueberroth, the 1984 Olympics’ acclaimed organizer, can be in drafting a blueprint for heavily minority Los Angeles: To minority communities, he is an outsider--a white, wealthy businessman based in Newport Beach. But rebuilding is not about color. It is about overcoming differences to create a new alliance that transcends demographics.

A restored economic lifeline in Los Angeles will depend on the cooperation and trust of community members, businesses and people of all colors. A commitment to that ideal is crucial to luring investments to restore a city that has sustained property damage of more than $700 million--a figure that does not include the loss of hundreds of jobs and possibly millions of dollars in tourism trade and in new commitments from foreign investors.

A first priority is to restore basic services: supermarkets, gas stations and drugstores. That takes money. Wherever possible, city, state and federal aid should be made available.

FINANCING FINESSE: The City Council is expected to vote today on the Community Redevelopment Agency’s commitment of $20 million in emergency relief assistance and grants to rebuild small businesses and homes in 17 redevelopment areas damaged in the riots. The council should approve this measure.

President Bush has authorized disaster aid through the Federal Emergency Management Agency, which will provide low-interest loans to homeowners and businesses to cover insured losses. Also available will be unemployment assistance and grants for rent payments for displaced people. Small Business Administration aid also is being offered.

Moreover, the Resolution Trust Corp. has some properties that are in riot-damaged areas. The RTC is allowed by Congress to turn over properties to community or nonprofit agencies to house low- and middle-income people. The agency should certainly consider doing so to help those left homeless.

PARTNERSHIP POWER: But city, state and federal resources are strapped because of onerous budget deficits on all three fronts. Unlike after the Watts riots, when considerable government money was available, Los Angeles’ recovery will depend heavily on private financing. And this emergency arises as the private sector is struggling under economic recession.

Much as community-based policing is expected to help relieve police-community tensions, so too can community-based businesses--in addition to larger companies--help to expedite the rebuilding of Los Angeles. Corporate Los Angeles must lend a hand. Business leaders must network with people living and working in affected neighborhoods. They have to humanize the process of building businesses in areas typically viewed as high-risk.

Some banks have begun to commit funds; Bank of America has a $25-million program. Basketball star Earvin (Magic) Johnson has created an investment group. On Monday, Gov. Pete Wilson met with corporate leaders to seek their support in restoring Los Angeles.

Expanding the state’s enterprise zones to make some of the hardest-hit areas eligible for major tax breaks would provide significant incentives for big businesses seeking to justify what they consider risky investments. The zones would be even more attractive if the federal government would throw its muscle and tax breaks behind them.

Right now no plausible business or tax strategy should remained unexamined. Restoring communities quickly will help reinstate confidence, but the plan to rebuild Los Angeles must also bring long-term vitality: jobs, safe communities and pride. The challenge of rebuilding is awesome, but it is a job for mortals. It can be done; a start must be made now.