CRA Board Names Consultant to Interim Post

The Community Redevelopment Agency board tapped private management consultant Jerry Scharlin on Wednesday to serve as interim administrator and help the board reorganize the financially troubled agency.

City Council members voiced concern that Scharlin lacks experience in redevelopment, but CRA board members said that is not as important in an interim administrator as skill in helping the board revamp the agency’s management structure and budget.

“He brings some outstanding, outside management experience to the agency,” Commissioner Keith Richman said. “We’re not looking for him to be an expert in redevelopment. We’re looking for him to help us clarify budgetary issues and management systems.”

Scharlin, an Encino resident, will also help the board prioritize its 31 project areas and determine the level of support for each that can be provided by the agency’s dwindling budget.

Richman said Scharlin tentatively accepted a $78,000, six-month contract to serve as interim administrator.

He fills a vacancy created by the abrupt retirement last week of administrator John Molloy, who quit during a budget dispute with the agency board.

Scharlin has been serving as an investor representative for Rubin Pachulski Dew Properties, LLC. He has also provided management consulting and trouble-shooting for the Resolution Trust Corp. and FSLIC. He also headed real estate development firm Janss Corp. for two years ending in February 1997.

“The expertise he brings to the agency is the availability of looking at our budgets,” board President Peggy Moore said.

Scharlin was recommended by MTA administrator Julian Burke to Mayor Richard Riordan, who suggested him to the agency board.

“The mayor thinks he is terrific,” said Jessica Copen, a spokeswoman for Riordan.

Members of the City Council’s Housing and Community Redevelopment Committee questioned the selection of someone with no experience running a redevelopment agency.

“I’m very concerned at this move,” Councilwoman Rita Walters said. “His resume is all in financial work and not in community redevelopment work.”

Councilman Rudy Svorinich Jr. was concerned that Scharlin has a reputation as a “turnaround” expert, which might mean major layoffs.

“We need to have assurances that this guy isn’t going to come into the agency and do an Eastern Airlines on us,” Svorinich said.

Moore told the council panel during a hearing Wednesday that the board is committed to all of the project areas.

“We are moving forward on all fronts to make sure there is no downtime for the agency,” Moore said. A search will also be undertaken for a permanent administrator.