Convention Hosts Ask L.A. to Give $4 Million

Despite howls of protest from some City Council members and others, backers of this summer’s Democratic National Convention on Friday formally asked Los Angeles to spend $4 million in cash to subsidize the event--and to increase the city’s transportation budget by another $2 million.

If approved, that motion would raise the city’s overall commitment to the August convention from $7 million to $13 million. Most of that money is in the form of police and transportation services, but $4 million of it would be a direct cash subsidy--something that convention backers have long promised not to request.

At first, it appeared that backers of the proposal had the votes to prevail in the City Council, where several members said they were disappointed by the need for public money but determined to ensure a successful convention. But support wavered all day at City Hall, and by afternoon even its strongest advocates were unwilling to predict victory when the matter comes to a vote next week, possibly Tuesday.

“It’s touch and go,” said Council President John Ferraro, who introduced the motion calling for the subsidy. Ferraro said the money is warranted because it would help planners produce a memorable convention that would project to the world a thriving, healthy Los Angeles.

“The city’s going to benefit from this,” Ferraro added.

Others, including some undecided council members, agreed. City Councilman Mike Feuer, who said he had not made up his mind, said the convention has the potential to boost tourism for years, but that its impact depends on reporters and delegates leaving with a positive sense of the event and the city.

On the other hand, Feuer added, he is bothered by having to chip in public money for a convention that has always been sold as a “taxpayer-free event.”

“I’m wrestling with the obvious conflict,” he said. “I’m very torn.”

By contrast, some critics were unfettered by feelings of conflict. They were lining up to take shots at the proposal, which offered them some easy opportunities.

From the start, the wealthy and politically well-connected group that sought and won the convention has promised it would be paid for without any direct taxpayer subsidy. Those business leaders formed LA Convention 2000, also known as the host committee, and said their effort would emulate the privately financed 1984 Summer Olympics, also held in Los Angeles and widely acclaimed for its fusion of public support and private money.

“On behalf of the city of Los Angeles, LA Convention 2000 will assume full financial responsibility for the hosting of the event using a well-constructed model developed for the 1984 Olympics,” the host committee’s official bid stated. It added that the group’s co-chairmen, including billionaire Eli Broad, lawyer Bill Wardlaw and entertainment mogul David Geffen, “assume all responsibilities and liabilities associated with hosting the 2000 Democratic National Convention.”

A spokesman for the host committee said Friday that the formal contract does not hold those men personally liable, but confirmed that the committee--not the city--remains responsible if there is any financial shortfall.

City Councilman Joel Wachs cited promises that taxpayers wouldn’t have to put out cash as he stepped up his opposition to the proposal.

“We had a deal,” said Wachs, a mayoral candidate who has built much of his reputation around resisting controversial public subsidies. “We’re fulfilling our part of the deal. They need to fulfill their part.”

Foreshadowing the testy, politically unpleasant squabble that many observers see erupting on the council floor next week, some opponents called the proposal a bailout for Mayor Richard Riordan and his well-heeled friends, whose labors have generated more than $30 million for the convention but who remain about $10 million to $11 million short of their goal.

Riordan supports the request for public money, but he also has been the convention’s most successful private fund-raiser. In recent weeks, he has secured about $5 million in cash and in-kind contributions, according to the host committee.

Still, even after seven years in office, Riordan can be a lightning rod for irritation on the City Council. Friday was no exception.

Asked what he thought of the host committee’s request for $4 million in cash, City Councilman Mark Ridley-Thomas acidly replied: “It seems that our fearless leader has failed to lead adequately.”

Ridley-Thomas said he believes there will be substantial council opposition to the idea, in part because it would help Riordan.

“There’s little inclination to bail him out at the 11th hour,” the councilman said.

Supporters grumbled that Riordan’s council opponents, by threatening to torpedo this request, were choosing the wrong way to express their unhappiness with the mayor.

Cities typically contribute substantial amounts of public money to the national political conventions. This year’s Republican National Convention, for instance, is receiving $7 million from Philadelphia, $7 million from Pennsylvania and $3 million from New Jersey, all of whom expect to reap some bounce from that internationally televised event. Those amounts are in addition to the services the local government is providing.

Los Angeles is expected to reap the same sort of publicity, and here the city’s proposed cash contribution is smaller. The immediate impact on the economy is estimated at $132 million.

“Ultimately, it is the public that will benefit both directly and indirectly from the successful completion of the convention,” Ferraro said in his motion, seconded by Councilman Alex Padilla.

Among critics of the deal, several were particularly annoyed by remarks just this week by Terry McAuliffe, the newly named chairman of the Democratic National Convention Committee, the group that will actually stage the convention at Staples Center Aug. 14-17.

On Wednesday, McAuliffe, who happens to be the most effective fund-raiser in the history of American politics, assured reporters and others that all the remaining money for the convention could be raised by the end of this month. Less than 48 hours later, the city was being asked to cough up $4 million in cash.

Friday, a number of officials wanted to know why taxpayer money is needed if McAuliffe believes the fund-raising is almost wrapped up.

Peter Ragone, a spokesman for the Democratic committee, said the request in part reflected the evolving expectations of what is required for a successful convention.

“Revisions have been made [to the contract between the host committee and DNCC] . . . to make sure that the convention’s key needs are met,” he said.

Ferraro agreed, and added that it is too late in the process to count on McAuliffe’s fund-raising abilities to salvage the effort.

“They gotta start paying some bills,” he said. “There’s a need to get this money moving.”