CITY OFFERS A HAND TO BUSINESS L.A. OFFICIALS REACH OUT, SEEK IMPROVED RELATIONS.

Byline: RICK ORLOV

Staff Writer

Battling the stigma of being unfriendly to business, Los Angeles officials pledged Thursday to step up tax-reform efforts, develop policies to boost growth, and seek to draw up a comprehensive economic plan for the city.

The emphasis comes just two days after a study found that neighboring cities are siphoning off Los Angeles business with better incentives and policies.

"We need to have a partnership if we are going to succeed," Mayor Antonio Villaraigosa told more than 400 business leaders who converged at City Hall in an annual Los Angeles Area Chamber of Commerce event.

And City Controller Laura Chick called for an overall citywide economic policy to enable businesses to more easily develop and plan for their future.

"We should not have economic development on a project-by-project mentality," Chick said. "We need a thoughtful economic plan that deals with housing and transportation, as well as measure and report on what we are doing on a best practices policy."

Business leaders have long complained that Los Angeles policies, regulations and even customer service make it difficult to operate in the city.

A Los Angeles Economic Development Corp. study showed this week that Los Angeles is losing business to Glendale, Burbank and the Santa Clarita and Antelope Valleys because its policies discourage businesses from locating in the city.

Villaraigosa said he has worked to promote development throughout the city to create more housing and more jobs, and has worked to promote the city's trade, tourism, entertainment and manufacturing industries.

"Look at the l.a. live project," Villaraigosa said of the entertainment-sports-retail project under construction downtown. "That was dead in the water when I became mayor and now it is about to open and we will be getting a Convention Center hotel.

"I said when I became mayor that I wanted the crane to be the official bird of Los Angeles and you see them everywhere."

A special panel established by Villaraigosa is scheduled to release a report in November on specific business policy recommendations it proposes.

On Thursday, the lack of consistent city policy was cited by several business leaders.

Bill Allen, chief executive of the LAEDC, said there have been instances in which City Council members have blocked developments simply because of potential community opposition.

"The council person said this was my district, this is not my vision and no one would overrule him," said Allen, who did not identify the official.

"I could give you other examples where council members stopped development. We need all the council members to come together and say we need to capture these opportunities."

Brendan Huffman of the Valley Industry and Commerce Association agreed.

"It would be helpful if the council addressed things together rather than council district by council district," Huffman said.

City Council President Eric Garcetti said business leaders need to be in constant touch with city officials.

"Sometimes it's not the regulations we have, but it is staying out of the way of business," Garcetti said.

Garcetti said the city is attempting to change its image, and he cited reductions in the gross-receipts tax and other tax reforms that have been implemented.

"Six years ago, we couldn't point to that," Garcetti said. "In a city as large as Los Angeles, change comes slowly, but I think what you are seeing now is a sea change."

Garcetti said he also has undertaken an effort to make the council more aware of business issues by creating a new committee -- Jobs, Business Growth and Tax Reform -- to spearhead changes.

Among the changes is reducing the bureaucratic red tape for businesses.

Garcetti noted a bakery that wants to open in his district -- but the owners had to go through 21 separate steps.

"That needs to change," Garcetti said. "I want to see us go from 21 to one in what is required to open in Los Angeles."

Gary Toebben, chief executive of the chamber, said he was hopeful city leaders would act on business leaders' concerns.

But chamber President David Fleming said the city needs significant change to make up for the loss of business.

"Los Angeles is the lowest in per-capita sales-tax revenue of any city in the county," Fleming said. "We need to have a balanced approach to bring in the revenue the city needs to thrive.

"That means a strong voice for business as well as for labor."

Improved job skills among young people and offering training programs at major construction programs -- including Los Angeles International Airport -- also are needed.

"It all starts with a job," Fleming said. "We, at the chamber, are not here as ideologues. We are pragmatists who want to see the city succeed."

rick.orlov(at)dailynews.com

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