Bernson Recuses Himself From Vote on Theater

To avoid any “appearance of impropriety,” Los Angeles City Councilman Hal Bernson announced Friday that he will not vote on a lease extension for the city-owned Greek Theatre.

Bernson disqualified himself in an unusual announcement on the council floor, where he also denied that he had a legal conflict of interest stemming from his purchase of a half-interest in an ocean-view condominium from City Hall lobbyist Neil Papiano, who represents the theater operators.

Bernson paid Papiano $140,000 for a half-interest in an Encinitas condominium that the assessor values at $387,000 for tax purposes, The Times reported.

As an attorney and lobbyist for Nederlander-Greek Inc., Papiano asked the council’s Arts, Health and Humanities Committee on Friday to give his client a lease extension despite complaints from competing firms that the lucrative theater should be put up for competitive bidding.

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Bernson is a member of the committee, but at his request, Council President John Ferraro appointed Councilman Mike Hernandez to take over his position on the panel during the debate on the Greek.

“Although I have explored this concern with reputable authorities in the field and they assure me that there is no conflict of interest, to avoid any potential appearance of impropriety, and without admitting any conflict, I hereby recuse myself . . .,” Bernson wrote to Ferraro on Friday.

The committee sent the controversial lease issue to the full council without a recommendation, and Bernson will also recuse himself from any vote in the full council on the matter, said spokesman Ali Sar.

Many of Bernson’s colleagues on the council were relieved that he took himself out of the matter, given the appearance of the real estate deal.

“It raised a good deal of concern for me so I think [recusal] is the right thing to do,” said Councilwoman Rita Walters, chair of the committee.

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Councilwoman Laura Chick agreed that Bernson should take himself out, according to spokesman Gary Boze, saying “She would rather he err on the side of caution.”

Bernson, Papiano and a third party bought the condo near San Diego in 1992. At the time, Bernson said he owned 7% of the condo and he used it once a month. In a filing last week with the Los Angeles Ethics Commission, Bernson reported buying Papiano’s 50% stake in the condo earlier this year for $140,000.

Under conflict of interest rules, elected officials cannot accept gifts from persons with business before them, including any discount not available to the general public, according to Assistant City Atty. Tony Alperin.

Papiano could not be reached for comment. Jim Sutton, an attorney for Papiano, said there was no favoritism in the real estate deal and Bernson did not have a conflict of interest in considering matters brought by Papiano to the council.

Bernson questioned the assessor’s $387,000 value put on the condo as too high, noting another condo in the area sold about three years ago for $290,000. In 1998, Bernson’s own economic-interest statement filed with the city Ethics Commission estimated the vacation condo to be worth $360,000.