Government corruption has become blatant and open. No need to hide it, corruption IS the policy of Los Angeles and other major cities. Here is the story:
Westfield development company wants to build a facility. Westfield folks put on a fund raiser for city officials. Westfield gets to build AND they get tax dollars—after they raise money. Crony capitalism at its worst. They project is a money loser—but if the government gives them money they make a profit, then sell out. In this case, by holding a fund raiser, Westfield gets $25 million in YOUR money. A little wine, cheese and then the $25 million.
“Without this assistance, they contend that construction of the project is not feasible,” he wrote.
Westfield has a funding gap of $48.9 million, according to Miller’s report. The city’s financial assistance, when calculated in present-day dollars, would be valued at $25 million, or 42% of the net new taxes generated by the project over 25 years, officials said. The final mix of taxes that Westfield would get to keep still needs to be negotiated, but could include hotel taxes, property taxes or other revenue, Miller said.”
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Mall developer Westfield in line for city financial assistance
By David Zahniser and Dan Weikel, LA Times, 6/24/13
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The Los Angeles City Council is considering a major package of financial assistance for shopping mall developer Westfield just days after the company helped stage a black-tie gala attended by city leaders at Los Angeles International Airport.
Westfield wants the city to help its Village at Westfield Topanga project, a west San Fernando Valley development that would house a 158-room hotel, a Costco, new office space and an array of stores and restaurants.
The proposal, which comes up for a City Council vote on Wednesday, calls for Westfield to keep up to 42% of the net new tax revenue generated by the project, or nearly $59 million over a 25-year period, according to city officials.
