SOUTH L.A. SHOULD SEE COMPLETION OF CRA PROJECTS.

Byline: Clinton F. Rosemond

AS the Los Angeles Community Redevelopment Agency celebrates its 50th anniversary, recent reports focusing on two proposed redevelopment projects erroneously imply that only one of the two projects will fly.

South Los Angeles can - and more importantly should - see the successful completion of a new shopping center and a new stadium. The question of whether one or both will be developed rightfully depends on the same criteria that apply to all proposed projects, nothing more and nothing less.

To suggest that Johnson Development's proposal to build a new shopping center (on the site of the old Santa Barbara Plaza) will be rejected unless Earvin ``Magic'' Johnson endorses the return of the NFL to the Coliseum is ludicrous to say the least. To CRA commissioners, such implications would be insulting were they not just plain silly.

Almost every opinion column suggesting unfair treatment of Johnson Development compares the Santa Barbara Plaza project to the newly approved Trizec Hahn project in Hollywood. There are tremendous differences between these two proposals and these differences are evident in the numerous financial elements comprising any development deal, whether private or public. We believe publicly financed or subsidized development deals should be no less scrutinized, and the hurdles no lower, than financing provided by private lending institutions. After all, public subsidies are taxpayer-paid dollars.

What will the public gain from its investment? Does the project serve the public interest? Does it include programs, such as job training or commitment to hire from the local community? What about day care for employees' families? (For instance, Trizec Hahn has a job-training program and also dedicates revenue directly to the city from its parking facilities.)

How solid are the developers' ``guarantees'' that they will repay the subsidy in the event the project fails to generate sufficient revenues to service the debt? Here's where the rubber hits the road.

The city lends the developer funds for construction; the loans are to be repaid by tax revenues generated by the project, i.e., sales taxes and property taxes. But what happens if those revenues fall short, for whatever reason? The city will be left holding the bag unless there is a prior agreement adequately substantiated (through contracts and credit guarantees) that the developer or project owners will take up the shortfall.

The CRA has, through the past half century, played a very important role in the growth of Los Angeles - not just in size, but in style, pride and spirit. From senior housing projects, innovative programs for first-time home buyers, to the construction and protection of cultural landmarks like the Central Library and the Museum of Contemporary Art (MOCA), the agency has been both a partner and a leader in the city's progress.

As we continue doing our work, we will see the rebuilding of the Coliseum into a state-of-the-art stadium and new shopping and business opportunities for people in and around the Crenshaw area. Both projects will come to fruition based on the merits of their individual proposals.