City atty. used ‘bully tactic’ over Jackson costs, exec says

Los Angeles City Atty. Carmen Trutanich tried to pressure the owner of Staples Center to pay $6 million for city services provided during the Michael Jackson memorial, saying he would “go after you guys” if the money was not paid, the company’s top executive alleged Wednesday.

“I wouldn’t say it was extortion. I would say it’s a bully tactic. That’s the way I would put it. He’s trying to bully us. And he’s done it on three different occasions,” AEG President and Chief Executive Tim Leiweke told The Times’ editorial board Wednesday.

His accusations escalate a growing public feud between the brash new city attorney and one of L.A.’s most influential corporations.

On the one side is the company that owns two of the city’s most prominent entertainment venues, Staples Center and the L.A. Live entertainment complex. On the other is a city attorney who took office in July and has quickly developed a reputation for aggressive and sometimes unorthodox actions. Trutanich recently threatened to throw City Councilwoman Jan Perry in jail and file criminal charges against the city’s top building-and-safety official if they violated his directives regarding AEG.

Earlier in his tenure, when the city Planning Commission ignored Trutanich’s request to delay a decision on approving new signs for the Los Angeles Convention Center, the city attorney sent a blistering letter to its members warning that he would “not hesitate to act in the future if it appears that you are aiding and abetting unlawful conduct despite my contrary advice.”

A spokesman for Trutanich dismissed Leiweke’s comments as misguided and adamantly denied that his boss made any attempt to strong-arm AEG over the Jackson memorial.

“The city attorney has never said anything bad about AEG. He said they are good citizens,” said John Franklin, Trutanich’s communications director. “He just wants them to pay the bill versus the taxpayers. He had nothing against AEG.”

Trutanich said he’s enforcing the law and looking out for the interests of Los Angeles taxpayers.

But Leiweke said he sees political motives. Leiweke is a major ally of Mayor Antonio Villaraigosa, and both backed Trutanich’s opponent in the bitter race for city attorney earlier this year.

Since taking office, Trutanich has blocked sign permits for the company’s new downtown movie theater and attempted to delay the city’s plans to lease billboard space to AEG at the Convention Center.

Leiweke alleges that Trutanich ordered investigations into AEG’s old fire permits and even the cracks in the sidewalks at Staples Center and L.A. Live, both owned by Anschutz Entertainment Group.

Councilman Dennis Zine, who served as an advisor to Trutanich during his transition, said the controversy shows Trutanich’s willingness to challenge one of L.A. most prolific influence-peddlers.

AEG and its executives have given hundreds of thousands of dollars to local politicians and their political projects, including $100,000 to Proposition S -- the mayor’s 2008 telephone tax measure -- and $100,000 to the Mayor’s Committee for Government Excellence and Accountability, state and city election records show.

“AEG has been very connected with the politics in the city of Los Angeles. Trutanich is breaking, shall we say, that sweetheart relationship that existed,” Zine said.

Last April, Leiweke hosted a campaign fundraiser at Staples Center for Trutanich’s opponent, Jack Weiss.

“I can only guess . . . that part of this is that we were on the wrong side of that election,” Leiweke said.

Trutanich’s spokesman dismissed that, saying “the Jack Weiss issue is absurd.”

Leiweke contends the feud began in earnest after Trutanich appeared before the City Council in July and announced there were “criminal aspects” to his investigation into how much the Jackson memorial cost the city.

Concerned that AEG was being accused of wrongdoing, Leiweke called and asked for a one-on-one meeting with Trutanich at the Starbucks at L.A. Live. Trutanich showed up with staff members, including two security officers, and it went downhill from there, Leiweke said.

“I said ‘Nuch, I thought we were just going to have a quiet get-to-know-each-other,’ ” Leiweke said. “He kept his glasses on the whole time and just simply said, let me make sure you understand this straight. I am going back to the original City Charter and I am going to enforce it. And in this particular case, I believe you have done something wrong here, and you don’t know what you don’t know.”

Trutanich requested that AEG reimburse the city for its costs, Leiweke said.

“And I said, what’s your idea of settlement? And he said, $6 million. And I said, where did you get that number from? He said, that’s the number,” Leiweke said, recalling the meeting.

“He made it very clear, either you settle or I am going to go after you guys. I said, ‘Fine. I’m sorry this didn’t work out.’ ”

Trutanich’s spokesman said that the city attorney had discussed AEG reimbursing the city for $2.3 million for the Jackson memorial -- the estimated cost at the time -- not $6 million.

According to City Hall’s top financial analyst, the memorial cost the city an estimated $1.3 million for police overtime, installing portable toilets, redirecting traffic and providing other city services. Leiweke said he had offered to help defray a portion of the $1.3 million.

Zine argued the memorial cost the city millions more, including the salaries of all the police officers and other city employees deployed for the event, not just overtime. AEG and the Jackson estate arranged the memorial and “stand to make millions” in a movie gleaned from video of Jackson’s rehearsals for his comeback tour, Zine said.

Now, the conflict between AEG and Trutanich is centering on the upcoming Jackson documentary, “This Is It.” The film will premiere Tuesday at the grand opening of AEG’s new theater at L.A. Live, but Trutanich has blocked the company from erecting on the building wall signs advertising the movie.

Two weeks ago, the city attorney warned the city’s interim general manager of building and safety, Raymond Chan, that he could face criminal prosecution if he issued permits for six signs at the theater.

Perry said Trutanich also vowed to throw her in jail if she tried to intervene.

“You can’t go around threatening people, trying to intimidate people and interfering with them when they’re trying to do their job,” Perry said, who on Friday had called for a council hearing on the controversy.

Trutanich last week denied making any threat, saying only that he has been aggressively upholding the strict ban on signage that the council approved in August. The ban prohibits new digital signs, supergraphics and billboards facing freeways.

“I’m serious about enforcing this ordinance. I’m as serious as a heart attack,” Trutanich said Friday.

AEG representatives said the city approved plans for the signs in 2006 and had already granted the structural and electrical permits for the six signs, with only the artwork permits still pending. The ban does not cover projects already approved and underway, including AEG’s theater at L.A. Live.

Leiweke said that if permits for the signs are not issued in a timely fashion, it could represent “hundreds of millions of dollars in damages” for the company.

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phil.willon@latimes.com

cara.dimassa@latimes.com