Hired Gun Who Will Travel (from Downtown LA to Westwood)

PKF consulting produced a questionable (mild statement) analysis of the proposed hotel/conference center to replace the Faculty Center. Turns out, PKF also is involved in producing a report to justify tax breaks for hotels in downtown LA. Warren Olney did a segment on that issue on “Which Way LA?” on May 9. You can hear the entire broadcast at http://www.kcrw.com/media-player/mediaPlayer2.html?type=audio&id=ww110509do_downtown_la_hotel

The description from Which Way LA? is as follows: “David Zahniser… wrote a Times’ story about tax breaks for massive hotels in booming downtown Los Angeles. J.W. Marriot, which opened last year, is reportedly doing well enough to produce some much-needed city revenue in a cash-strapped city. But the Anshutz Entertainment Group, AEG, will be able to keep some $270 million in taxes through 2035. Combined with two other such deals, the city could end up giving away $640 million in the next 30 years. The Mayor and City Council approved the subsidies after analysis by PKF Consulting, which calls them “incentives” and says they’re common where they will stimulate new business.” Source: http://www.kcrw.com/news/programs/ww/ww110509do_downtown_la_hotel

The segment on the downtown hotels runs from roughly minute 4 to minute 20 at the link above. An executive for PKF is one of the people interviewed. He makes an initial statement at roughly minute 7 to minute 12. In a later interchange during minute 14 to minute 18, he admits his study was paid for by the developers who want tax breaks for their hotels. And – guess what? – his study shows that the hotels absolutely need those tax breaks.

Apparently, the market for hired guns needs no tax breaks to prosper: