Secession Foes Lead in Funding

By PATRICK McGREEVY and JEFFREY L. RABIN

Oct. 8, 2002 12 AM PT

TIMES STAFF WRITERS

Mayor James K. Hahn’s anti-secession drive reported Monday that it had raised more than $4.7 million, mostly in large donations from business interests and labor unions, for a television, radio and mail blitz in the final weeks of the campaign.

The San Fernando Valley independence campaign reported that it had raised $546,883, as of Sept. 30. It said the contributions had come from 797 individuals. The Hollywood secession effort reported raising $585,326, 90% of it from the campaign leader, Gene La Pietra, spokesman Geoffrey Garfield said.

Neither the Valley nor the Hollywood secession committee released a donor list Monday. Both said they were still compiling the lists, which were due to be mailed by day’s end to the city Ethics Commission.

The Hahn camp’s huge financial advantage had many political observers saying the secession measures face long odds to win passage Nov. 5, unless breakup advocates can mount a broad volunteer campaign.

“The people against secession will have a louder bullhorn than the people for it,” said a Republican political consultant, Allan Hoffenblum. “When the maverick goes up against the establishment, it’s hard to raise money.”

Hahn’s campaign committee reported raising $2.86 million during the most recent period, from July 1 to Sept. 30. In comparison, the Valley campaign raised $471,000 during that period. It also amassed $102,000 in debts.

The Hahn campaign, which received major contributions from business and union supporters, ended the period with $3.3 million in the bank.

The Valley Independence Committee had $222,000 on hand for the last push toward election day.

Secession leaders said they were not discouraged by the money gap, even though they once vowed to raise $4 million to $5 million. They noted that the Valley and Hollywood campaigns, along with those of the candidates seeking office in the proposed cities, have raised a combined $1.8 million.

“It’s not disappointing because it is $546,000 from the people, instead of $4.7 million from special interests and downtown power brokers,” said Carlos Ferreyra, co-chairman of the Valley Independence Committee.

“This mayor sold his soul to them. He is going to owe these people after the election,” Ferreyra said.

Kam Kuwata, an advisor to Hahn, said the money raised so far puts the campaign on track to begin a major media campaign against secession.

“We now have to execute our game plan,” Kuwata said.

When asked about Ferreyra’s comment about special interests, Kuwata noted that La Pietra has said he has put $1.6 million into the secession effort, including payment for a study that placed the breakup question on the ballot.

“The pro-secession side has a nightclub owner who has said he will spend whatever it takes,” Kuwata said. “We don’t have someone like that.”

Top contributors to Hahn’s anti-secession campaign during the last period include the American Federation of State, County and Municipal Employees, based in Washington, D.C., which contributed $250,000; Univision Chairman Jerry Perenchio’s Living Trust, which gave $200,000; United Firefighters of Los Angeles, which gave $200,000; and the Los Angeles Police Protective League, which gave $100,000.

“They have a vested interest in controlling City Hall,” Ferreyra said.

The campaign also received contributions from Beverly Hills Construction Management, which gave $100,000; developers Castle and Cook Inc., which gave $100,000; HNTB Corp., which gave $75,000.; the L.A. Arena Co., which gave $50,000; the Anschutz Corp., which gave $50,000; the Los Angeles Business Advisors, who gave $50,000; and Eli Broad, chairman of Sun America, who gave $50,000.

Broad’s contribution brought to $151,935 the total he has given to the anti-secession campaign.

Other major contributions include $25,000 each from Oaktree Capital Management LLC, Occidental Petroleum Corp., Paramount Pictures Group, Parsons Corp., Sony Pictures and Local 347 of the Service Employees International Union, which represents about 10,000 blue-collar employees of the city of Los Angeles.

DreamWorks studio partners--Steven Spielberg, Jeffrey Katzenberg and David Geffen--together gave about $25,000.

Airport Commission President Ted Stein held a fund-raiser for the campaign, and several firms that do business at city airports also have contributed to the campaign. They include Super Shuttle Los Angeles Inc., Mini-Bus Systems Inc., Mercury Air Group Inc., Marriott International and Joseph Lyons of FS Group.

In addition, the campaign received several contributions from lobbyists and city commissioners.

Firms regulated by City Hall that contributed included American Outdoor Advertising Co., AT & T Broadband and Regency Outdoor Advertising.

The campaign also reported receiving a total of $25,000 from the Entertainment Industry Development Corp., but Hahn recently announced he was returning the money to the film-permit agency, which is under investigation by the district attorney for its spending practices.

Hahn’s committee reported paying $1 million to Morris and Carrick Inc. for TV air time and production costs.

The mayor’s L.A. United campaign is one of 14 committees formed to support or oppose Valley and Hollywood secession measures on the Nov. 5 ballot. Besides Hahn’s campaign, others against secession raised more than $250,000.

The largest anti-secession committee besides Hahn’s is one put together by Hollywood area Councilmen Tom LaBonge and Eric Garcetti. Their I Love L.A., No on Measures F and H Committee reported raising $145,950 and, at the end of the period, had about half in the bank.

That committee received $5,000 each from Broad, Police Commission President Rick Caruso, Forest Lawn Mortuary, Majestic Realty Inc. and Los Angeles Marathon Inc. It also received $10,000 each from former mayor Richard Riordan and the Los Angeles Police Protective League.

Another campaign committee was formed by Council President Alex Padilla to target Valley Latinos, and reported raising $62,500, including $5,000 each from Broad and developers Henry Cisneros and Robert Voit.

City Council members and City Hall lobbyists formed the Public Safety Coalition, No on F, which reported Monday that it had raised $59,750 during the period ending Sept. 30, and had $76,000 in the bank.

A campaign committee formed by Councilman Nick Pacheco called One LA for Everyone reported raising $7,000.

Arnold Steinberg, who formerly advised the secessionists, said the recent resignation of consulting firm Goddard Claussen Porter and Novelli from the breakup campaign probably hurt fund-raising.

“When you don’t have consultants putting together a viable strategy, you don’t attract money,” Steinberg said.

In the race for mayor of the Valley city, Assemblyman Keith Richman (R-Northridge) reported raising $127,533, including about $60,000 that he transferred from his Assembly reelection campaign.

Richman reported having about $37,000 in the bank at the end of the period.

Mel Wilson, a real estate agent and another leading candidate for Valley mayor, said he had raised about $48,000.

(BEGIN TEXT OF INFOBOX)

Secession opponents maintain big fund-raising advantage

Mayor James K. Hahn’s campaign against secession of the San Fernando Valley and Hollywood had $3.3 million in the bank at the end of September. The anti-secession L.A. United campaign received major contributions from labor unions, developers, businesses and wealthy individuals.

Raised -- $2,861,531

Spent -- $1,418,878

Cash on Hand -- $3,339,918

Top contributors to Hahn’s anti-secession campaign:

American Federation of State, County and Municipal Employees -- $250,000

Univision Chairman Jerry Perenchio -- $200,000

United Firefighters of Los Angeles -- $200,000

Los Angeles Police Protective League -- $100,000

Beverly Hills Construction Mgmt. -- $100,000

Castle and Cook Inc. -- $100,000

HNTB Corp. -- $75,000

L.A. Arena Co. -- $50,000