Getting L.A.’s Economy Moving

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As California regains its footing in the recovering economy, we must address one clear fact – the city of Los Angeles has lost 165,000 net jobs since 1980, but added close to 1 million residents during that same period. That fact underscores the need in this city, region and state for more quality jobs. That calls for more effective steps by the public sector to foster economic and job growth in the region.

Growing an economy doesn’t just happen. It requires many things, including capital, skilled and confident entrepreneurs, a talented and educated labor pool, and much more. But constructive and proactive political leadership and responsible government and pro-growth policies are also vital. L.A.’s Measure R and its “30/10” plan to accelerate the construction of 12 major public transportation lines throughout Los Angeles County is a perfect example of the positive contributions strong political leadership can make.

But with unemployment still above 11 percent, other delayed or new economic development initiatives must move forward now.  

L.A.’s history shows us that in key moments the region’s business, labor and civic leaders have demonstrated a shared commitment to economic growth. They focused on growing the economy by investing in significant projects that attracted and connected a growing population, and fostered new industries like entertainment and aerospace. They built aqueducts that deliver our water, the freeway system, the nation’s busiest port complex and one of the world’s leading airports. (The port and airport remain the two biggest job generators in Southern California.)

These achievements should serve as a guide for all of us who have a stake in L.A.’s future. Today, the L.A. Coalition for the Economy & Jobs is bringing together a number of the region’s business, labor, non-profit and academic leaders to work more closely with our public-sector leaders to collectively address today’s most pressing economic issues and opportunities. Right now, we are focusing on three initiatives that will create quality jobs, grow our economy and improve the quality of life in Los Angeles. Everyone in Los Angeles should support these:

Make much-needed and long-delayed investments in the Los Angeles International Airport and the ports of Los Angeles and Long Beach.

Our region’s economic growth opportunities remain strongly linked to our two transportation hubs. The mayor and the City Council have recognized this with their support for LAX’s modernization improvements, such as the new Bradley West Terminal, and the port of L.A.’s $1.2 billion capital improvement program. Now, after a decade of debate, public policymakers must approve the following:

• The BNSF Railway Co. and Union Pacific want to invest $1 billion in private funds to build out rail facilities to expedite the movement of containerized cargo and other freight from the port.

• LAX must move its north runway to accommodate today’s aircraft, improve all terminals, and connect its travelers and workers to L.A. Metro’s public transportation system.

Further delays will come at the expense of thousands of middle-class jobs, the environment, increased tourism and trade activity, and a better quality of life for all our residents, especially those who use LAX. It is time for our airport and port commissioners, the City Council, county supervisors and the mayor to green-light these projects in the best interests of Southern California’s 15 million residents and LAX’s neighbors.

Bring new leadership to the Los Angeles Convention Center to grow valuable business travel and tourism in Los Angeles.

With the commitment of AEG, city leaders took a major step in approving Farmers Field and a $350 million commitment to further develop the Los Angeles Convention Center and Downtown Event Center Project. This should serve as a catalyst to change the Convention Center’s leadership structure and put in place industry experts who will implement more effective management, operations and marketing efforts. Los Angeles should be a top-tier convention destination. Convention business can and will generate millions more in business and tax revenues, attract billions in private-sector investment in new hotels, restaurants and stores downtown, and create thousands of middle-class jobs. Bolder management is required – to match the energy of L.A. Live.

Develop a new consolidated and proactive office for economic development for the city.

The city of L.A.’s more than a dozen economic development programs should be consolidated into one office. New York and Chicago both have established offices that provide entrepreneurs, and the business and entertainment communities with a one-stop center offering financial guidance, incentives, and the ability to cut through red tape and bureaucracy. A proactive fully committed economic development team is needed to generate jobs and attractive and retain businesses.

Los Angeles has always represented the best America represents and can be. As the upcoming mayoral and City Council campaigns ramp up, the time is now for civic leaders and the public to push the incumbents to get these long-delayed and much needed projects fully under way. Let’s also use this election to select new leaders who will commit to fostering economic growth as they lead Los Angeles in the 21st century economy. 


Russell Goldsmith is chairman and chief executive of City National Bank and chairman of the L.A. Coalition for the Economy & Jobs. Michael Kelly is executive director of the coalition.

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