City Urged to Consolidate Economic Development Efforts

Charging that Los Angeles’ efforts to boost its economy are unfocused and ineffective, a city task force recommended Monday that programs be consolidated into a new “nimble, nonbureaucratic” Economic Development Department.

The City Council-appointed task force of business, labor and civic leaders also opposed a direct takeover of the Community Redevelopment Agency by the council.

“The task force found that the city of Los Angeles currently lacks an effective focus on economic development and also lacks clear, defined priorities for economic development activities,” said Ken Bernstein, a member of the group.

Proposals to consolidate and improve the city’s economic development programs have been advanced. The council agreed a year ago to appoint a task force to try to end gridlock on the issue after council members and business leaders split over the proposed takeover of the redevelopment agency by the council.

“It’s been the politics of this situation that has prevented anything from being moved forward,” said Councilman Mike Hernandez, who said the task force report may help focus debate and build consensus.

The task force recommended that future decisions on economic development target economically underdeveloped neighborhoods and low income and unemployed people. The report suggested the focus should be on seeking industries that provide high-quality jobs.

Bernstein, an official with the Los Angeles Conservancy, said dividing responsibility for economic development between the Community Redevelopment Agency, Community Development Department and other city departments hinders the effort.

“It’s unclear who is responsible for articulating an economic development strategy,” Bernstein said.

The task force disagreed on how best to reform.

Currently, a board appointed by the mayor oversees the CRA.

Only six of the 23 task force members favored a takeover of CRA board operations by the council and delegating oversight of a new Economic Development Department to a nine-member commission appointed by the mayor.

The City Council already has final say on redevelopment issues voted on by the CRA board, and task force member Madeline Janis-Aparicio said it would promote accountability and efficiency to have the council take on a more direct, clearer role while delegating oversight to one commission.

Some task force members opposed putting 15 politicians in charge who might each try to help their own council districts first.

“I’m concerned about the potential for micromanagement and fragmentation of the city’s attention to economic development if all economic development activities are divided by 15,” Bernstein said.

The largest plurality of votes--10 task force members--favored another option that would have allowed the mayor to appoint a seven-member commission to oversee the new department and act as the CRA board. Under that scheme, a chief executive officer would be hired to handle day-to-day operations of the new department.

The report was presented to the council’s Ad Hoc Committee on Economic Development Consolidation.