SPECIAL INTERESTS PROMOTE PROP. R ANSCHUTZ AMONG BIG CONTRIBUTORS.

Byline: BETH BARRETT Staff Writer

Special interests, including companies run by Staples Center owner Philip Anschutz, are bankrolling a campaign that's raised $144,500 so far in support of a November ballot measure that would give City Council members an extra term in office.

Divisions of billionaire Anschutz's AEG have been among the largest contributors with their $25,000 total donations in support of Proposition R, according to campaign finance filings released Thursday.

The Los Angeles Police Protective League PAC has added another $25,000, with tens of thousands of dollars more from a law firm and others with city business. Former Mayor Richard Riordan contributed $10,000, according to the records.

The financing for the measure -- which includes ethics reforms and would allow council members a third four-year term -- dwarfs the $3,000 opponents have raised in small cash donations and in-kind contributions, filings show.

Kris Vosburgh, executive director of the Howard Jarvis Taxpayers Association, called the contributions ``protection money.''

``These vested interests have invested millions to lobby City Council members into submission. They don't want to have to start over again with new, fresh faces that term limits bring to City Hall,'' he said. ``They're looking to protect their investment.''

Controversial measure

The measure has been controversial since it was first introduced just months ago and fast-tracked through the City Council. It was sponsored by the Los Angeles Area Chamber of Commerce and the League of Women Voters of Los Angeles.

A Superior Court judge ruled that the measure should be struck from the ballot because it violated the California Constitution by combining two issues -- ethics reform and term limits. But the state's 2nd District Court of Appeal said the measure should stay on the ballot. The appellate court will consider the constitutional issue Nov. 28.

Vote on its merits

Supporters of the measure said voters should decide on its merits, not by who is financing the campaign.

``I think the real policy question is whether you think voters should be able to re-elect a council member and not be limited in their ability to do so,'' said George Kieffer, former chairman of the appointed City Charter Commission. ``If you think that's the right policy, you should vote for this proposition; if you think it's the wrong policy, vote against it. The money is not the issue.''

Contributions to the campaign supporting an extra term limit for City Council members come from AEG when it is committed to investing about $1 billion in a downtown sports and entertainment complex across from Staples Center.

A linchpin of the project, which AEG calls l.a.live, is a 54-story hotel and condominium complex the City Council agreed to help fund with $300 million in public financing through a loan, tax breaks and fee waivers.

``It goes to show this isn't real ethics reform when you look at Phil Anschutz who has all sorts of business with the city, not only at Staples Center, with tens of millions of dollars in subsidy for his hotel,'' said Jeff Jacobberger, treasurer of the opposition campaign.

``The real question is, Do the people of Los Angeles believe in ethics reform written and paid for by lobbyists and special interests?''

But AEG spokesman Michael Roth said the companies contributed because the measure will help the city.

``It's critical that the council have experienced leadership to deal with complex issues such as homelessness and the responsible development of downtown, which this measure will help provide safeguards to achieve,'' Roth said.

The bulk of the campaign's money so far -- $109,500 -- was raised in the past three months.

The campaign reported $181,385 in expenses so far, including for lawyers, consultants, polling services and purchasing space on slates mailed to voters.

Riordan said he contributed the $10,000 because he now believes he made a mistake in limiting council members' terms. He said the current eight-year maximum encourages politicians to grandstand while they have the chance, meanwhile pumping through all kinds of legislation to that aim.

``All these new politicians want is to make a name for themselves,'' Riordan said, calling the measure's financial backing beside the point. ``I don't see special interests getting anything particularly extra out of this.''

Liza White, president of the League of Women Voters of Los Angeles, said the campaign placed limits on who its professional fundraiser could tap for contributions, barring the solicitation of lobbyists.

Educating voters

Otherwise, she said, the goal was to raise enough money to educate voters.

``We'd really like the people of Los Angeles to understand the measure,'' White said. ``I think what we have done is to put forward a proposition that's good governance. And a campaign needs to finance itself.''

Stephen J. Kaufman, the attorney and treasurer for the ``Yes'' campaign, said the measure is becoming increasingly grass roots.

``This is not a special-interest piece of legislation, but is intended to effectuate important public-policy changes,'' Kaufman said. ``I think you'll see over time that support for this measure is broad-based.''

But Jacobberger, the ``Not Prop R'' treasurer, said it's impossible for opponents to compete on an even financial playing field. He said most cash contributions have come out of supporters' pockets in $50 and $100 increments.

`Honest government'

``I think that's always the case: People who want clean, good, honest government are always at a financial disadvantage to the monied special interests,'' he said.

Contributions to the ``Yes'' campaign, as reported by the campaign Thursday, also include: $10,000 from Bond Capital Ltd.; $7,500 from United Firefighters of Los Angeles City Local 112 - Issues Committee; $7,500 total from the law firm O'Melveny & Myers and its political action committee; $5,000 from Pacific Energy Group LLC; $5,000 from Navicert Financial Inc.; and $5,000 from JCC Homes.

Among other contributions were $3,000 from Old Church, LLC; $3,000 from Rew De Soto Partners, LLC; $1,000 from EDSG-Environmental Data Solutions Group, LLC; and $1,000 from SPEC Services, Inc.

Contributions of $500 were made by Jeffrey Shell; Aprea & Company, Inc.; and Evelyn Fierro.

beth.barrett(at)dailynews.com

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