RIORDAN SETS GREEK THEATRE DEADLINE.

Byline: Beth Barrett Staff Writer

Mayor Richard Riordan has given the Recreation and Parks Commission until Wednesday to break a deadlock in awarding a new, 10-year contract for the Greek Theatre, or face starting the bid process over.

Riordan foreshadowed his intention to pressure the commission last week on the KFWB-AM (980) radio show ``Ask the Mayor,'' when he said he believed that officials were considering scrapping both the House of Blues Concerts and Nederlander-Greek proposals in favor of a fresh start.

The commission has deadlocked, 2-2, on the contract with mayoral candidate Steve Soboroff recusing himself because of a conflict of interest.

On Monday, Riordan spokesman Peter Hidalgo said the mayor would only step in if the commission could not reach a decision, at which time calling for new bids would become ``an option.''

The prospect of the mayor's influence being exercised on one of the most contentious, and political contract disputes in the city's history drew immediate protests from residents in Los Feliz near the theater.

Along with an independent panel, financial consultants and city staffers, the Los Feliz Improvement Association, representing hundreds of residents, has recommended that House of Blues Concerts replace longtime vendor Nederlander, a company with close political ties to City Council President John Ferraro.

Mark Siegel, an association board member, said residents plan to rally today at City Hall against starting the process over.

``It's a lousy idea,'' Siegel said. ``You have two companies that bid in good faith. Going out to bid again just smacks of saying, We'll keep trying until Nederlander gets the bid.''

Department General Manager Ellen Oppenheim, in a letter to commissioners, warned that failure to reach agreement would mean immediate forfeiture of a one-time $500,000 cash payment, risk delay of needed capital improvements until the 2003 season and put in limbo future theater operations after the current Nederlander contract expires Oct. 30.

Commissioners said it would be unprecedented for Riordan to intervene.

``It would be a first time,'' said Vice President Leroy Chase, the commission's San Fernando Valley representative since 1993. ``When I first came on, the mayor just said he wanted us to read, study, do your homework and make an intelligent decision. I've never been approached by the mayor to take a stand on any concession, or any agreement.''

Chase and Commissioner Maria Elena Durazo voted Jan. 16 against a motion to pick House of Blues Concerts, saying they needed a clearer comparison of financial claims made by the two firms.

Commissioner Robert Nizich, who joined Lisa Specht, also were surprised by the mayor's threat.

Representatives of both firms said they believe they can win Wednesday on their own merits.

``I haven't heard from anyone in the Mayor's Office,'' said Nederlander attorney Adam Burke, with the downtown firm Iverson, Yoakum, Papiano & Hatch. ``We're still hoping, angling for an extra vote; we have what's good enough to win an extra vote.''

Both companies provided the commission with clarifications regarding their financial promises.

House of Blues Concerts provided an $11.1 million ``irrevocable letter of credit'' from Bank of America to back its guaranteed capital improvements, while Nederlander provided documentation of a $2.75 million account with City National Bank, and a letter of credit from former rival SFX, the nation's top concert venue operator.

House of Blues Concerts was recommended by city staffers largely on its promises of $11.1 million in capital improvements, or more than double Nederlander's guarantee of $5.5 million. Both bidders offered about $1.5 million in annual rent, about triple what Nederlander has paid.