Mid-Wilshire businesses take subway battle to Congress; meanwhile, MTA eases up on aid loan requirements.

Meanwhile, MTA eases up on aid loan requirements

Mid-Wilshire business and property owners have turned to the U.S. Congress in their continuing battle to save their neighborhood from what they claim is financial ruin brought on by Metro Rail subway construction.

The Metropolitan Transportation Authority, for its part, has implemented a change to its mitigation loan program, designed to make the loans more palatable to the struggling business people who say they need money to keep their business afloat during the construction period.

But those affected remain uninformed about or unimpressed by the change, and they remain frustrated by the system.

Enter U.S. Rep. Xavier Becerra, D-Los Angeles, who represents Congressional District 30, which includes a portion of the area known as Wilshire Center. After meeting with Wilshire business people about their problems, Becerra met with Metropolitan Transportation Authority Chief Executive Franklin White and Richard Alatorre, chairman of the MTA board of directors, on behalf of his constituents.

One of the issues of greatest concern to Becerra was an MTA requirement that, in order to obtain a mitigation loan, a business owner must sign a waiver giving up the right to later sue the MTA for Metro Rail construction-related damages.

MTA spokesman Bill Heard said a change has been approved in the loan program under which the waivers will only absolve the MTA from liability for damage occurring prior to a loan being granted, not from future damage.

But last week there was confusion among business people, and even at the MTA, about the status of the change, And Becerra said the change, even if it has been implemented, is "inadequate."

"I don't think you should have to sign away that particular right (to sue). It seems absurd," said Becerra. "It's also clear the MTA has been dragging its feet, as they have been dragging their feet on the mitigation."

Becerra said threatening to vote against federal funding for MTA projects, and/or lining up other congressional representatives to vote with him, is "a possibility if I don't get any response from the MTA." Becerra said he's already spoken to other members of Congress about the problem and alerted them that he may be asking them for help.

"It's bad enough to lose business because of the recession, let alone to be losing business because government and private contractors won't play by the rules," said Becerra.

Harrison Kim, executive director of the Korean American Chamber of Commerce of Los Angeles, said although Becerra has promised to "press the (MTA) board members to pursue business concerns," Korean business people are "not relying on him."

Kim sent a letter to all the MTA board members and White complaining that many businesses along the boulevard "have suffered tremendously by loss of customers who are severely inconvenienced by the construction" and that construction-related problems "have made it very difficult for (a) number of businesses to operate."

"What is more frustrating to the businesses (is) the apparent lack of sensitivity on the part of the MTA. Many business people have expressed frustrations in dealing with the agency," Kim continued.

Since Kim sent that letter two months ago, the response has been "very slow," he said.

"It's a very slow and frustrating process," said Kim. "At this point, what's concerning us is the MTA staff is not reacting and is just waiting until the major construction is completed, and then it will be too late for many businesses.

"There's a lot of cases where the MTA staff has pretty much ignored the business concerns and impacts. It seems like a number of people have given up."

Wilshire business owners have been complaining that while the MTA has set aside $27.7 million to mitigate Metro Rail construction impacts in Hollywood, where work has yet to get underway, almost nothing has been earmarked for the Wilshire area.

The MTA has an insurance program to compensate business owners for actual physical damage to their buildings, in addition to the loan program designed to tide businesses over through construction. But business owners say it's almost impossible to qualify for the money.

Heard also noted that although no specific amount of money has been set aside for Wilshire mitigation, money has been made available when needed for such things as street cleaning, advertising and signs.

The Wilshire Chamber of Commerce surveyed businesses in the area and found that, on average, retail business is off 50 percent since the MTA began tearing up the street in May of 1991, said Andy Miliotis, property manager of Wilshire Financial Tower and chairman of the Wilshire chamber's Streetscape Committee.

Some businesses also reported on survey forms that they were forced to layoff half their employees, Miliotis added. The surveys were turned over to L.A. City Councilman Nate Holden's office, Miliotis said.

"Nate is doing the work for us through Franklin White, and I'm beginning to feel confident that we're going to get something," said Miliotis.

The chamber has requested about $16 million to fund a five-year program to mitigate the impacts of Red Line construction on Mid-Wilshire businesses. The program would include a marketing campaign, crime prevention and graffiti removal.

Last week, at a Wilshire chamber luncheon, MTA Public Affairs Officer Benita Horn announced that the MTA staff will be meeting with the chamber and Holden to reach agreement on a mitigation plan to go before the MTA board for approval.

"At this point, we can't guarantee you $16 million," Horn added.

She explained that more mitigation was necessary in Hollywood because the area includes many historic buildings where preservation is required by federal organizations.