The Los Angeles City Council recently approved the creation of an Office of Economic Analysis (“OEA”).  Amazingly, up until now, the City Council did not take the impact of any of their imposed regulations into consideration when making decisions.  The effort to create the OEA was led by the Los Angeles Area Chamber of Commerce, the Central City Association, and the Valley Industry and Commerce Association (“VICA”).

The Council voted 14-0 to create the OEA, which will evaluate the impacts of proposed ordinances on local businesses, job creation, sales tax generation, income growth and other economic factors.  The OEA is also designed to provide research for initiatives the city could take to spur economic development.  Introduced by Council President Garcetti and Councilmember Smith, the OEA is modeled on the San Francisco program established in 2006. 

Plans are to house the OEA in the City Administrator’s office.  Admirably, Council President Garcetti agreed to provide the $250,000 first year’s operating costs out of his office’s discretionary funds.  After the first year, the OEA will be funded by the General Fund.

Also, in Los Angeles, the Baseline Hillside Ordinance (“BHO”) is quickly moving toward action by the City Council.  This week the Planning and Land Use Management (“PLUM”) Committee of the City Council opened a Public Hearing on the proposal.  Just to digress for a moment, the BHO proposal will affect the ability to build on every single family residential property in the designated hillside areas.  The three main objectives are to (1), revise the Floor Area Ratio (“FAR”) calculations, (2) revise the allowed heights, and (3) revise the allowable grading, to reduce the number of very large houses being built in the hillside areas.  This follows the Baseline Mansionization Ordinance from last year where the City has reduced the size of homes allowed in the flatland areas. 

The PLUM Committee took Public Testimony on the BHO before continuing the hearing to July 27^th.  Over ten homeowners groups spoke in favor of the new regulations.  Only one homeowners group spoke in opposition.  The Beverly Hills/Greater Los Angeles Association of REALTORS® (“BHGLAAR”) is opposed to the proposed BHO as being too restrictive on private property rights. 

However, with the latest news of the creation of the OEA, we will be altering our position.  We will still OPPOSE the BHO, but also ask that the proposal be vetted by the OEA before being presented to City Council.  If anything needs to be evaluated on how it would affect homeowners, this is the perfect item! 

More with the City of Los Angeles.  A recent proposal by the City Council has come and gone…thankfully.  The Council took the initial steps to place an item on the November 2010 ballot that would create a Parcel Tax of $39 annually to fund libraries.  Los Angeles and all cities are scheming up creative ways to squeeze fees and taxes out of property owners for operations.  What’s more “feel good” then funding libraries?  A cute puppy tax?  Though it seems the Council had misgivings and pulled that idea.  Let’s hope it is gone for good.

The election for Los Angeles City Councilmembers is March 2011 for the “even-numbered” council districts (Krekorian, La Bonge, Cardenas, Parks, Wesson, Smith, and Huizar).  Smith is not seeking reelection.  All signs indicate that the others will be running to retain their seats.  Though I see a new group has been formed by former Mayor Richard Riordan and former LA Daily News Publisher Ron Kaye called “LA Clean Sweep” that is a “political action committee organizing to back candidates with integrity and a broad vision for Los Angeles to sweep out of office City Council members responsible for the budget crisis that threatens to force the city into bankruptcy despite soaring taxes, rates, and fees.”  Their initial meeting was held last week and over 200 interested residents attended (and each paid a $20 admission fee).  With leaders such as Riordan and Kaye, this group may get the momentum to make change.  Too soon to tell.  Information on the group is available on their website www.lacleansweep.com .

Please put the next Centennial Club Legislative Luncheon on your calendar.  Friday, October 22^nd.  Featured Speaker will be Art Leahy, Chief Executive of METRO.  Mr. Leahy will update us on the Measure R funding (that BHGLAAR supported), and the latest on the “30/10” proposal that will construct all of the 30 year projects within the next 10 years.

So far, CAR has voted to OPPOSE the proposition to legalize marijuana since it affects property management issues, and take a Not Real Estate Related position on the Redistricting of Congressional Districts.