Some Officials Question L.A. Marathon Costs

The Los Angeles Marathon is expected to bring 23,000 runners to the city and pump $22 million into the local economy this week. Still, some local officials worry that the event is costing the city too much.

Under Los Angeles Marathon Inc.’s current contract, the company must pay about $130,000 annually to the city for the right to hold the marathon, to be held Sunday.

But the city spends more than $500,000 to control traffic, close streets and patrol the route. On top of that, the Department of Water and Power sponsors the marathon to the tune of $112,000 a year.

Now confronted with a $200-million budget deficit, some officials who have supported the marathon are questioning whether Los Angeles is getting its money’s worth from the run and other special events.

“This is one of those dirty little secrets at City Hall,” said Councilman Jack Weiss. “We’re spending like it’s the boss’ money. We are not paying attention to the overall amounts of money that are going out for these things.”

The marathon is not the only event that receives free city services. Los Angeles routinely waives fees for the Academy Awards, the Grammys and other gatherings--big and small. Police estimate that they spent “hundreds of thousands of dollars” in public money to provide security for the Emmy Awards after the Sept. 11 terrorist attacks.

Many officials argue that the prestige of having big events in the city outweighs the public expense. They also note that the city benefits indirectly, through increases in sales tax and hotel bed tax revenues.

“The reason L.A. doesn’t have a football team is that they kind of have this attitude that we’re so great we don’t have to do anything to bring great stuff to our city,” said William Burke, president of Los Angeles Marathon and husband of county Supervisor Yvonne Brathwaite Burke.

“I’m not of that belief. I think you have to do something that shows off your good points,” he said. “You have to toot your own horn. It doesn’t take a genius to know that the rest of the country is used to seeing us when there is an earthquake, fire or drive-by shooting. This shows our good side.”

Nevertheless, Weiss and City Controller Laura Chick are asking the city’s number-crunchers to figure out how much Los Angeles spends on services for all special events.

“There’s all this discussion on how the marathon helps the city’s economy bring in people and money,” Chick said. “That’s great and important. But still we must spend our money in a businesslike and thoughtful way.”

Weiss said many people fear that Los Angeles would lose events to other cities if it didn’t pick up the tab on services.

“People argue that if you don’t waive the fees, they’ll just move the events to New York. Well let’s find out if that’s true,” he said. “We need to get everything out into the open, so people will know whether this is a good or bad use of city resources.”

Los Angeles is not alone in helping underwrite extravaganzas. The city of New York spends a staggering $4.3 million on services for its marathon, which drew 25,000 runners last year.

“Cities are always comping these events,” said Bob Stern, the head of the Center for Governmental Studies in Los Angeles. “They believe it’s more than just money, it’s also prestige. Look at all the cities trying to get the Olympics. It makes us feel good. But it sure costs us a lot of money.”

If moneymaking events are seeking public funds, Stern says, they should open their books for scrutiny and pay what they can afford.

“As a condition for city money, you should be required to make your books public,” he said.

In 1996, then-Councilman Mike Feuer suggested that the city be allowed to audit Los Angeles Marathon Inc. before approving any more city subsidies for the event. He also wanted to analyze marathon contracts in other large cities.

His concerns came after a campaign money-laundering scandal involving Burke’s firm. Los Angeles Marathon Inc. was fined $200,000 by the Ethics Commission in 1994 after funneling about 100 contributions, topping $50,000, into a half-dozen council campaigns. Councilman Nate Holden, a longtime friend of Burke’s, topped the list, receiving about $9,000 in contributions.

“The money-laundering issue was in the back of people’s minds,” Feuer said. “There were questions as to how much profit the marathon was making relative to what the city was providing. I just wanted some answers.”

Feuer’s colleagues, however, accused him of losing sight of the larger picture--Los Angeles’ image around the world. They charged that he was “nickel and diming” the marathon.

They voted to extend Burke’s contract to 2005 without the audit. Then in October 2001, the council voted to extend the contract again, this time to 2010. Council members, including Weiss, unanimously approved a provision that made it clear that the city would pick up the tab for much of the police and transportation services.

Holden led the charge for the contract extension.

“We have over 20,000 runners coming from all over the world,” he said. “It’s a benefit.”

Meanwhile, Burke noted that organizers of other events are not required to pay fees.

“We are the only major event held in the city of Los Angeles that has a tremendous economic impact in the city that pays this kind of fee,” he said.

“The Dodgers get all those services free. When the Raiders were here, they got all those services. You ask the Staples Center, the day they had the parade when the Lakers won the championship and they had all the police down there--not a dime.”

Burke added: “Ask me how much the Academy Awards and how much the Grammy Awards paid. I’m the only guy in town who pays.”