City Council Balks at Taking Over the CRA

The Los Angeles City Council balked Tuesday at a proposal to take over the Community Redevelopment Agency, ordering more study of the agency’s beleaguered finances and hearings to address strong objections from downtown business interests and unions.

With many council members doubtful about taking over the financially troubled and politically unpopular CRA, the council postponed action for 60 days and voted instead to create a task force to review the proposal, which is a key element of a plan to overhaul the city’s economic development programs.

The agency faces an $8-million deficit next year--up to $40 million over five years--and has had to cut its work force from 350 to 210 employees because property tax revenue dried up in the recent real estate downturn.

Unions representing CRA workers also voiced concern about more job cuts.

Union leader David Cochran said there is fear that the mayor wants to cut the work force by another 30 to 80 employees. The mayor’s office did not return calls.

“The last thing in the world I want to be is a CRA commissioner,” Councilman Hal Bernson said. “I know the intentions are good, but let’s not become the focal point of all the criticism and all the problems of the CRA.”

The council voted 11 to 3 to direct its staff to prepare for the takeover and the consolidation of the city’s far-flung economic development programs into a new Economic Development Department.