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City Hall’s Revenge on Cecilia Estolano

Villaraigosa and his boys pushed out the one woman who topped them all

But unlike Goldberg, Estolano had the experience, power and quasi-independence required to execute her ideas. According to Wasserman, under Estolano the city created 19,000 construction jobs as well as 5,000 permanent jobs.

“She was always more interested in the people who would work on projects and would benefit from them,” says Wasserman. “[The CRA] began, for the first time, to aggregate how many estimated construction jobs and permanent jobs will be created by our projects to benefit the community.”

“Cecilia was the first person in the history of the CRA to come up with a real, deep strategy for creating jobs for the city,” says agency commissioner Madeline Janis, who has worked with four different CRA CEOs. “Her passion was lifting Los Angeles out of the recession.”

Among her admirers, Estolano earned the respect of a top union leader and close mayoral ally, AFL-CIO head Maria Elena Durazo, who e-mailed the Weekly saying, “She recognizes that job creation should not be our community’s only goal in economic development; we must ensure that new jobs created by public investment are good middle-class jobs, not dead-end poverty jobs. Her support of the construction-careers policy led to a national model for creating career ladders for the unemployed living in blighted neighborhoods.”

Kotkin notes, compared to New York City, “We’ve done much worse than them in the recession. We’ve really done badly in this recession, which is surprising because the exposure in the financial services wasn’t that great — we didn’t have that many financial-service jobs to lose.”

Instead, Kotkin notes, Los Angeles “has lost all sorts of jobs . I’m not a Bloomberg fan and all that, but at least Bloomberg’s paying attention.”

On December 12, 2009, two years after the recession began, Villaraigosa convened an economic advisory panel to help him address the economic body slam L.A. has taken.

Though the members of that panel include individuals with serious business credentials, such as former Los Angeles Mayor Richard Riordan, its marquee names lean heavily on the very industries at the center of the burst economic bubble: banks and developers.

The mayor did not name an industrialist or manufacturer to his advisory panel, nor any experts on sustainable industries. In fact, Riordan immediately faulted the Clean Trucks program for leading to a loss of jobs — the very same program Villaraigosa boasted about in Copenhagen.

No longer on the scene was the woman credited with a broad economic vision, who had sought non-bubble industries when the mayor did not, and melded jobs and sustainable industries for him.

**Correction: The original version of this story incorrectly stated that Councilman Ed Reyes was among the politicians who reprimanded Estolano for fighting to maintain industrial lands. Reyes did not do so.

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  • Disgusted 05/26/2010 1:29:00 PM

    No matter how well Ms. Estolano has done her job, she was working for the CRA - created by the biggest ripoff legislation ever passed and done in the name of development - any development. Just the simple fact that all properties obtained, prepared, financed and sold to developers through the CRA via no-bid contracts should be enough to make you want to picket against any further CRA projects not only in Los Angeles, but anywhere in the USA.

  • antonio un-fan 01/27/2010 9:43:00 PM

    CRAs are always suspect. People are scared of eminent domain. But Estolano was very much a reformist within our CRA, and we will surely have more corruption billionaire-slush-funding without her. She's a smart savvy manager, and of all people taking care of our city's future redevelopment, she was probably one of the best candidates. Antonio Villaraigosa has got to go. He's all about celebrity, status and power. Why can't we have a mayor that puts the needs of Los Angeles first before his own. The mayoral seat comes with a lot of struggle for progress. We need someone ready and unfettered by distracting gubernatorial hopes.

  • Anonymous 01/20/2010 8:39:00 PM

    Walter - CRA is NOT a City department like CDD. CRA is a separate state mandated public agency somewhat like LAHSA or HACLA - separate from local governemnt - but working in a collaborative manner. It would not make sense to try and "merge" the two entities. CDD is part of the local government - the City of Los Angeles - and therefore administers federal entitlements, such as CDBG, state grants, etc. citywide. CRA is not a part of local government - but must go thru council to operate City projects - and when allocated such funds per Council motion, CRA is considered a subrecipient. CDD administers the Community Development Block Grant, close to $100 million dollars a year (along with other grants), and ensures that federal compliance is met. Federal regulations direct CDD to make sure that the funds are spent primarily on the low-mod income residents and areas of the City of Los Angeles. This includes community centers, parks, afterschool programs, sidewalks and tree planting, domestic violence shelters and services, aids prevention services, office of beautification community projects, and senior services citywide to name a few projects funded by this money. CRA merging with CDD would just create a conflict of interest regarding the entitlement and CRA control of all the grants CDD now administers. This is the real reason the Mayor and CRA want the merge to happen.

  • Walter Moore 01/15/2010 8:08:00 PM

    The CRA is nothing more than a massive slush fund use to give billionaire developers and other cronies hundreds of millions of dollars of taxpayer money each year. Consolidating the offices of two redundant agencies -- the Community Development Department and the Community Redevelopment Agency -- is a patently reasonable thing to do, especially given the City's over-spending-induced deficit. Estolono suffered from the delusion of thinking she was somehow important in the City Hall machine. She was not; no one is. The career politicians and their staffs are puppets put in place by the developers, the unions and other special interests. Her "threat" to resign shows how wildly she overestimated her significance. It should take all of nine minutes to replace her.

  • Pets 01/15/2010 2:21:00 PM

    There is *a lot* of strokage going on in this article. Fishy.

  • anonymous 01/11/2010 4:48:00 AM

    Before a new Director is hired, LA Weekly, could you please do an article about the CRA. Why do they exist; what good have they done; and whom do they benefit. In my experience every sterile project funded by them and politically backed has been a rip-off of the taxpayers and a beneficiary for the connected few. It should keep you busy for months.

  • Ira 01/09/2010 5:24:00 PM

    Why doesn't our mini mayor just hire Jim Hahn back to help him run the city. Hahn hired Ms. Estolano in the City Attorney's office. Estolano thought mini mayor was the furture. She found out, like so many others have, that mini mayor doesn't have a clue about anything except how to generate big money donors to get re-elected (do what they want) Mini is about money, his own.

  • Stopit 01/08/2010 10:39:00 PM

    This article missed one large point: moving the CRA to the new building was going to save the City millions of dollars. Ms. Estolano wanted nice office space and was willing to waste city money to get it. She got what she deserved. And, if you had bothered to talk to the rank and file of the CRA, you'd find out that Cecelia was seen for what she was: a political hack that lacked experience and the backgroudn to run the CRA and boy did it show.

  • Anonymous2 01/08/2010 11:12:00 AM

    The brightest light in City Hall in a long time. Ms. Estolano was a "can do" CEO who inspired the agency's staff to get things done as well. Her deep understanding of industry sectors and the role they play in sustaining upward mobility for working wo/men was taking LA' s redevelopment in a fundamentally more meaningful direction. She was practical and direct. Refreshing to hear from so many on-the-record folks. That doesn't happen often and is a fine testament to her character and principles. As for CDD, this is a pass thru grant operation and a declining local remnant of LBJ's Great Society.

  • Horace McRib 01/08/2010 10:15:00 AM

    Since the burdensome CRA was formed, how many buildings producing how much property tax revenue has the CRA turned back to the city? Do they keep the tax money forever to extend their reach to everywhere?? They should change the name to Community Redevelopment Agency, Perpetual (CRAP).

  • Aaron Epstein 01/08/2010 8:10:00 AM

    Cecilia Estolano is now in a very fortunate position if she is no longer associated with an added layer of bureaucracy that takes our valuable tax revenue away from needed city services like police,fire, medical, libraries and utilizes to benefit well connected developers. In addition it cannot be overlooked that the CRA has a history of kicking people out of their homes and small businesses to make room for projects of those who are well connected. Cecillia should be congratulated, not pitied.

  • Chris 01/08/2010 4:42:00 AM

    WOW! - Knowing from experience that no-matter-who is in charge of this agency nothing will ever change. The CRA/LA has been pretty screwed up for a very, very long period of time and it has made a itself a lot of "unfriendlies" throughout the city ... okay, Ms. Castolano got the boot or booted herself. - Who cares? - She has done the same to others in the past. - While she created jobs for some she also helped kick a large number of people out of jobs when she supported the use of eminent domain. My opinion is that no-matter-who the mayor puts in charge of anything it will benefit him and nobody else. - Once that person does get more credit then him, gets more attention then him and oh yes: People like better then him HE, the all-so-over-the-top and never in town mayor gets scared and has this person fired. Go figure! - I just hope the next person in charge of the CRA will kick even more butt then she did. - But I guess we won't have to worry about that, since the mayor won't put anybody that "smart" in charge ever again. Chris Potter, LA

  • InLA 01/08/2010 4:34:00 AM

    Thank you for the article. As a veteran of City Hall with the misfortune of working in that dysfunctional dump known as CDD, I can commisserate with Ms Estelano of wanting no part of it. Having said that, City Hall is no place for smart innovative people and they are usually driven out. This is the worst it has ever been. A dumb Mayor and Councilmembers attract the same. Dare they dispute that, the current fiscal crisis of their making proves it.

  • Remain Anonomys 01/08/2010 3:47:00 AM

    I'm not sure how much you were paid to do this star-studded review on Ms. Estolano, but it's obvious the research came mostly from her friends and family. Before publicly addressing the Community Development Department (CDD) as "long-troubled and less well-known" you might want to actually do some research on it. It not only provides the funds for CRA projects, it holds their hands along the way to complete them and ensure all State and Federal regulations are followed. CDD has assisted in the opening of over 50 businesses in downtown Los Angeles, the most recent being Cafe 9. It also finds funding for non-profit organizations to open business such as domestic violence centers, youth and family centers, worksource centers, assists people with finding jobs, has helped thousands of youth find work in the current economy and continues to work with the Mayor's office and the City Council to place ARRA funds in the most blighted, low-income areas of the Los Angeles community. That's just a fraction of what CDD does. You really should check out the CDD website - then write a four page article about something positive for a change.

 

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