RED-TAPE REBELLION RENEWAL OF CHATSWORTH BID AT STAKE.

Byline: Brent Hopkins Staff Writer

CHATSWORTH - Three years after agreeing to tax themselves to beautify a stretch of Devonshire Street, many business operators have gotten fed up with the city's red tape and the lack of improvements.

As of Friday, renewal of the Chatsworth Business Improvement District was stuck on hold as city inspectors look into allegations of financial mismanagement of the $92,000 the 420 businesses pay each year to spruce up the 1.5-mile long commercial corridor along Devonshire Street between Topanga Canyon Boulevard and Jovita Avenue.

The business in the BID pay $180 to $1,000 a year, and many complain that all they've seen for their money is installation of some American flags, a community cleanup effort and some tree plantings along Devonshire.

``The BID isn't working and it needs to go away,'' said John Stevenson, owner of an auto repair shop. ``It's one thing to choose to pay, but this is something we're being taxed for.''

Stevenson, whose shop is just south of the BID area, has become a leader in the campaign to abolish the tax zone out of fear it will be expanded to cover his business.

Taxes vary depending on the type of business, with professionals paying $180 annually, small retailers paying $360, and large tenants like banks and hotels paying $1,000.

BID Chairman Dick Pearson acknowledged little has been done, but said bigger improvements are on the way.

``There's been big red tape delays in getting funding,'' he said. ``Because of those delays, things are coming along slowly. But all the projects were proposed by stakeholders, voted on by the board and approved.''

Pearson blamed delays from the city in acquiring funds for the project, saying the directors' hands were tied for five months in 2000 while they awaited the money. And working with a volunteer staff didn't help, he said, as the 13 board members had to sandwich in BID business among their daytime duties.

The stakeholders - the businesses up and down the block - aren't all sure their tax dollars are being spent wisely.

``I was told it was to beautify Chatsworth - fixing the street, planning events, etc.,'' said Denise Schaum, owner of Denise's Pet Groomers. ``I haven't seen much improvement. I got this notice saying they wanted to do it again, and I decided I didn't want to stick around this time.''

She encouraged neighboring businesses to oppose the BID's renewal, angering board members. Fliers circulated accusing financial mismanagement, and tempers flared in an otherwise quiet community.

Some of the bad blood between the most prominent dissenters began prior to the BID's establishment, when Pearson butted heads with Schaum and Stevenson as their landlord. But they claim this argument stands separate from their past disputes, and have garnered support from business owners unassociated with the old gripes.

``I think it's bogus,'' said Randy Beck, owner of Safari Surf and Sport. ``I'm all for increasing business and city beautification, but nothing's happened. I'd rather buy my own flag than have them spend my money to do it.''

Nanette Phelan, owner of A Symphony of Flowers and the board's secretary, said that during monthly meetings, no complaints were heard, nor were other suggestions offered.

``Everyone's trying to do their best,'' Phelan said. ``They've had an opportunity to make their feelings known, but they've never been there.''

Stevenson and Schaum took their concerns to the City Council on Aug. 6, urging rejection of the BID's renewal. After their presentation, Councilman Hal Bernson's office put its support on hold and the City Clerk's Office began to investigate.

``If the complaints I've seen are legitimate and are sustained by the audit, then there's a problem there,'' said Greig Smith, Bernson's chief deputy, who hopes to succeed the councilman next year. ``Up until a few weeks ago, we hadn't heard a thing and this has been in place for a few years. It just blew up all of a sudden.''

Though stakeholders commonly grumble in the early stages of BID administration, a formal audit is rare. Still in its preliminary stages, the final numbers should be available in several weeks.

``They wanted to ensure the monies were spent the way they were supposed to,'' said Karen Kalfayan, chief management analyst for the City Clerk's Office. ``It's not necessarily common. When there's a concern like this, we look into it, but it doesn't happen a lot.''

One of the main concerns raised by the opposition stems from the $20,000 the BID paid to the Chatsworth/Porter Ranch Chamber of Commerce to administer the project.

For $1,000 a month, the BID gets the use of the chamber's chief executive officer, Ivy Weiss, to administer its money, as well as the staff and facilities. Stevenson and Schaum said this demonstrates conflict of interest - since Weiss also serves on the BID's board of directors - and improper use of funds.

``They already had a staff, Ivy, to run the show and the facilities,'' Pearson countered. ``Since the Chamber of Commerce is the entity responsible for the operation and they had the personnel already, we're saving $20,000 to $30,000 a year. It just seems most convenient to have them.''

And though he agrees that the service has been slow, Pearson says if the BID can win support, it will flourish in the long run. After haggling with the city for months, he managed to get 40 trees donated by the Department of Water and Power, to be installed September 7, and if funds are re-approved, he hopes to slowly remake the area. But to do so, he needs the input of the community, he says, even the members trying to cut him off.

``People just have to show up,'' he said. ``If they have ideas, they just have to tell us and we'll try to do it.''

CAPTION(S):

2 photos, map

Photo:

(1) John Stevenson, owner of an auto repair shop, opposes renewal of the Chatsworth Business Improvement District.

(2) Dick Pearson talks about his work as chairman of the Chatsworth Business Improvement District.

Evan Yee/Staff Photographer

Map:

Chatsworth Business Improvement District