Contract Bidder Wooing Neighbors of Greek Theatre.

The fight for control of the Greek Theatre has spilled into the surrounding streets of Los Feliz.

Rather than lobby city officials, as is the usual practice, House of Blues Concerts is directly targeting residents with a direct-mail campaign that promises almost $100 million in rent and community improvements if HOB is awarded the contract to operate the city-owned venue.

The move follows HOB's successful challenge last year of the city's extension of the Greek lease with Nederlander of California Inc.

The mailer sent to area residents guarantees that HOB would pay the city $50 million to $76 million in total rent, depending on the length of the contract, along with $18.5 million in renovations to the venue, $500,000 in traffic and parking improvements, and another $3 million for community outreach and youth programs.

"You have to be a good corporate neighbor," said Adam Friedman, senior vice president of House of Blues Concerts, which also runs the 6,250-seat Universal Amphitheater. "From our perspective, the local community should have a voice in this."

Adam Burke -- an attorney with Iverson, Yoakum, Papiano' & Hatch, which represents Nederlander -- said HOB's tactics are nothing special.

"We've got the same ideas," Burke said. "Nederlander has definitely been going into the community, and we have incorporated many of the suggestions into the (contract) proposal" that will be mailed to the neighborhood in the coming weeks.

Few specific details of the Nederlander proposal have been released yet. However, the firm is offering to sink $1.6 million into traffic and parking improvements. The proposal also pledges to reduce noise and expand community outreach in part by hiring a full-time community liaison, hosting meetings and providing a neighborhood forum through the Greek Theatre Web site.

The city's Recreation and Parks Commission is expected to recommend one of the two competing bids at its Dec. 13 meeting.

In December 1999, House of Blues sued the city of Los Angeles, alleging illegalities surrounding the five-year lease extension-granted to Nederlander by the City Council. Before the extension, Nederlander's contract called for just $50,000 in minimum yearly rent, which many observers characterized as a sweetheart deal.

In exchange for the five-year extension, Nederlander agreed to a 10-fold increase in its minimum annual rent -- from $50,000 to $500,000 -- as well as making $5 million in improvements.

In the face of the House of Blues suit and mounting pressure to put the lease up for public bid; the council rescinded the extension and issued a request for proposals to run the historic concert venue.

Nederlander, in partnership with SFX Entertainment Inc., submitted a new bid to extend its lease, which is now set to expire in late 2001. HOB and Nederlander are the only bidders in the current process.

Mark Siegel, a Los Feliz community member and political consultant with Siegel & Nicholl, said HOB has consistently made the public interest a major issue 'during the Greek lease controversy.

"They can't claim all the credit for blocking it' (last year), but (HOB) played a significant part in being' Paul Revere and making the rest of the city aware," Siegel said.

Siegel, a member of the Los Feliz Improvement Association, suggested that Nederlander's attention to community issues has been shallow over the years and is only. increasing now out of necessity. In the past, most of Nederlander's outreach has focused on "other constituencies," including city labor groups, commissioners and City Council members. He called it "lobbying from the top down."

Burke, the lawyer representing Nederlander, disagreed and contended that his client hasn't neglected the community.

City records show that the Greek has produced annual gross revenues of between $9 million and $13 million over the last several years. To Friedman, those numbers show the Greek has been under-performing, due to scheduling of too few events and failing to sell out the venue.

"When you combine a lesser number of shows with a lesser number of tickets sold, it's an easy equation," Friedman said.

HOB would double annual grosses, Friedman said, by returning the theater to the landmark and entertainment draw of tradition. He said HOB would bring in 250,000 people annually, with the average patron spending about $100. That would translate to annual gross revenues of $25 million.

Burke declined to discuss Nederlander's financial plans for the Greek, claiming the city considers the bid proposals confidential.

Los Feliz resident Marc Leeka, who for five years has lived within shouting distance of the Greek on Glendower Avenue, said the forays by HOB and Nederlander into community involvement are nothing more than platitudes intended to impress those who ultimately will award the contract.

"There are some community members who think they are going to have a say in programming," Leeka said. "I think those community members are smoking dope."

HOB's Friedman countered that dramatically improving the venue's financial performance can be accomplished without greatly increasing the number of shows

Under its plan, HOB would displace 240 seats at the Greek to install 24 luxury boxes.

And, Friedman said, there are not enough nights in the Greek's limited season to have more than 70 events per year.

In fact, he said, HOB would probably have about 65 events annually because of a scarcity of talent on tour.