Quake Forces L.A. to Drop Political Conventions Bid

Los Angeles will drop its campaign to be host of the 1996 Democratic and Republican national conventions because the city cannot afford to stage the political extravaganzas in the wake of last month’s earthquake, Mayor Richard Riordan announced Monday.

Riordan said in a statement that he was disappointed but that he had to terminate the city’s bids because of the substantial public investment that would have been required.

A committee lobbying for the Democratic conclave in 1996 had estimated that it would cost at least $22.5 million to convert the Los Angeles Convention Center into an arena--complete with podium and network television sky boxes--and to provide housing and office space for the convention staff.

The city has not calculated the cost of holding the Republican convention, but even preliminary estimates made either event too pricey for a city that faces a $150-million deficit, and the potential loss of more than $66 million in tax revenue from businesses damaged in the Jan. 17 earthquake.

“Given our fiscal priority for the recovery of all of Los Angeles and for making our city safe, we cannot guarantee millions of public dollars” for the conventions, Riordan said.

Both Riordan and other civic boosters had hoped that having one or both conventions would be a psychological balm for a city riven in the last two years by recession and a string of disasters.

“The tragic aspects of this (earthquake) only sort of multiply,” said one mayoral adviser.

Los Angeles had been considered a front-runner for the Democratic convention. With the city and state still mired in an economic downturn, the Clinton Administration has gone to great lengths to boost the region’s fortunes. Many Democrats believe that holding the convention in Los Angeles--the site of the nomination in 1960 of John F. Kennedy--would be important symbolically in Clinton’s effort to hold California in the Democratic column in 1996.

“They were very strong candidates,” said Alice Travis, director of party and government affairs for the Democratic National Committee. “Certainly, we are disappointed that Los Angeles can’t continue in the bidding process.”

Bill Press, who chairs the California Democratic Party, said he was sure the city would have won the convention if it had the money. “This convention would have come to Los Angeles, without doubt, because it made the most sense for the President,” Press said.

The deadline for bids for the Democratic convention is at the end of this month. A White House aide said that Chicago is now a favorite for the event, although New Orleans, San Antonio, Kansas City, Mo., and New York are contenders.

The deadline for the Republican convention bids is not until April and the competition for that gathering is said to be more wide open.

Riordan had chosen prominent party members four months ago to form committees to bid for the political gatherings. He cited figures that the 1992 Democratic convention had infused $188 million into the New York City economy and that the Republican convention the same year pumped $140 million into Houston.

A post-Watergate reform measure requires that money spent on the conventions come from public funds. This was an attempt to prevent large private interests from tainting the outcomes of the conventions where presidential candidates are nominated.

Riordan said it would be too much to ask city residents to pay to sponsor the events, despite the benefits, with all the other bills coming due.

One key Riordan adviser noted that the mayor would have to seek the money as he enters a crucial phase of his first year in office--the presentation to the City Council of his first full budget. In addition to the deficit and earthquake expenses, Riordan’s plan to beef up the police force is estimated to cost $90 million in the fiscal year that begins July 1.

“It’s going to be a hell of a fight on the budget and the earthquake only made the mountain that much steeper,” said the adviser, who asked not to be named. “The mayor wanted this, he really wanted this. It’s important for the city psychologically. But it’s just not appropriate at this time.”

The Los Angeles City Council adopted a resolution Friday to help obtain tax-exempt status for the two committees lobbying for the convention. They were going to raise funds privately to promote the city.

But even those efforts were likely to run into trouble, said City Council President John Ferraro.

“Times are tough, not only for the city of Los Angeles, but for all the businesses here that we would rely on to raise that money,” Ferraro said.

Riordan’s statement touted the city’s “family attractions, beautiful beaches, and flawless humidity-free summer weather,” predicting that Los Angeles will be financially robust enough to have both conventions in 2000.

Times staff writer Alan C. Miller contributed to this report from Washington