New Tactic, Same Worthy Goal

Rebuild L.A., the nonprofit economic development organization, is scaling down its agenda but not its long-term commitment to create jobs in poor areas of the city.

As Los Angeles continues to recover from the nation’s worst urban civil disorders in this century, the organization plans to focus on developing small businesses. That more doable plan will replace one that emphasized luring major corporations to the inner city.

The new tactic acknowledges current economic realities, including the lingering recession. In this day of downsizing among major corporations, especially in defense, small businesses are generating the majority of new jobs.

To help small businesses get started or expand, the organization, now officially known as RLA, will start a loan and equity fund with grants from Arco and other contributors. The fund will lend from $25,000 to $250,000 to entrepreneurs who cannot get traditional financial help.

Start-up capital isn’t the only barrier to doing business. RLA needs more assistance from Mayor Richard Riordan and the City Council. City Hall needs to streamline the permit process and cut the red tape that hinders the start-up, expansion or relocation of businesses.

Toward that end, Riordan Tuesday appointed a deputy mayor in charge of economic development. Alfred Villalobos, an investment banker, can best serve the new mayor by making this city more hospitable to business. But Riordan’s appointment of Villalobos does not absolve the mayor or the City Council of responsibility.

Then-Mayor Tom Bradley and most of the council left the rebuilding job up to Rebuild L.A. That was mission impossible. To reverse a decades-long decline in the inner city, RLA needs help from the White House, the Statehouse and City Hall.

Still, even without significant government aid Rebuild L.A. managed to generate a record $500 million in new commitments to the inner city. Though it did not create the miraculous urban renaissance many had hoped for, it did bring grocery stores, drugstores and other retail outlets back to neighborhoods that had been nearly devoid of commercial activity. It encouraged major banks and corporations to invest in community-based financial institutions. And RLA got some corporations to expand, relocate and train new workers in inner-city neighborhoods. This level of private economic activity was virtually unprecedented, and did not occur in the aftermath of riots in other American cities.

But RLA simply could not fix all that was broken in the riots. It has made a difference, though, and can continue to do so with its new focus and with help from government.