LOS ANGELES : City to Waive $1 Million in Building Fees for MWD

The Los Angeles City Council on Tuesday agreed to waive more than $1 million in city construction-related fees that the Metropolitan Water District would normally pay as it builds its new headquarters near Union Station.

The 13-1 vote, however, was marked by vigorous debate about the wisdom and legality of exempting builders--even if they are public agencies--from paying city environmental, building and sewer hookup fees.

Councilman Joel Wachs predicted that the council action, exempting MWD from $1,014,000 in fees, would invite a “despicable” pattern of private developers giving campaign contributions to lawmakers while seeking similar favors from the City Council.

But others, including Council President John Ferraro, said Wachs’ fears were unfounded because the MWD is a public agency, not a private business. Moreover, Ferraro and others said that granting the exemptions would help reverse the city’s image of being hostile to development.

“It’s important that we send a message that we want them in Los Angeles,” Ferraro said.

In December, 1992, the MWD board agreed to build a new, $100-million headquarters for 900 employees on a 45-acre site owned by Catellus Development Corp. next to Union Station. Construction is to begin in 1996 on the 14-story building.