Denouncing General Growth is anti-Americana

Herbert Molano

Last week, before Superior Court Judge Robert O’Brian, the city took

a page from Americana at Brand developer Rick Caruso’s A-B-C

referendum message and claimed time and again that General Growth’s

intention was to obstruct free competition. The timing of a letter to

the community forum (“Americana at Brand on course for completion,”

Mailbag, Jan. 12) appeared to be orchestrated as a prelude to

influence future election debates.

The irony is that, if you look closely, the process that led to

Caruso’s town center development is the antithesis of laissez-faire

capitalism or free competition. The process that makes the Americana

possible is a corruption of the very philosophy that we advocate as a

free society and for which we have fought many wars.

Caruso’s naming of his development project is an affront to the

name “America.” It is as conceptually removed by distance as it is by

philosophy. It is a project conceptualized of an Italian/European

motif made possible by the use of dual coercions -- the taking of

private property by the threat of government action (eminent domain)

and the taking of taxpayer’s money for a commercial venture.

The unfairness of this process goes deeper. The money that

supports the bond the city used to borrow tens of millions of dollars

has come primarily from the very same owners whose property lie

within the redevelopment area. In simple language, General Growth and

the surrounding business paid the tax that the city used to force the

sale of their property or to subsidize their competitor next door.

Put it in personal terms. If you, as a result of your own

determination, frugality and entrepreneurship, established a store

and developed a sustainable business, you would not consider it free

competition if the city helped pay the rent of your competitor next

door.

There is not a true capitalist on the dais who feels, in his

bones, what the concept of free competition really means.

Free competition means you take your lumps or your business goes

under if you fail to satisfy your customers. But, it also means you

bring prosperity to your family and your community if you succeed in

providing a product or service that customers want. Free competition

means your business succeeds without a government hand out and

without their intervention on your behalf.

Caruso’s deal with the city is none of that. Not only is his

project subsidized to a third of its value, but also, his agreement

with the city’s redevelopment agency practically guarantees him a

profit. It is understandable if nearly 50% of Glendale residents have

a different impression. The public relations and advertising effort

by Caruso-affiliated holdings was as exceptionally expensive as it

was expansive and pervasive.

This is not a condemnation of Caruso’s development concept. The

design, style and overall visual impact of the town center are

stylish and inviting. Caruso and his team have given us a vision of

what proper planning and design can do for a stodgy and historically

unimaginative city planning. To me, Caruso is the virtual embodiment

of Lorenzo de Medici of sixteenth century Florence in both the vision

to enhance the architecture of a city and in his mastery of political

influence. If our Redevelopment Agency is willing to give away tens

of millions in land value, he would be foolish not to use his

influence in his pursuit of his core business financial strategy -- a

massive taxpayer’s gift.

As a city, we created an agency run by people unaccustomed to bare

knuckle negotiations and who swoon at the sight of potential campaign

support. We have been foolish enough to elect councilmen who never

ran a business, never had to meet a payroll, never lived the

uncertainty of risk nor suffered the financial hardships of a wrong

business decision. Worse still, we elected two who lived their adult

lives under the security blanket of a government payroll check. We

forgot that they would eventually be out of the public eye, behind

closed doors, confronting a master negotiator -- Caruso.

Free competition really means laissez-faire capitalism, free of

the intrusion by government.

General Growth purchased the Galleria, the brick citadel of bland

architecture, two years ago in an arms-length private investment.

They, much more so than Caruso Affiliated Holdings, are the

embodiment of American competitive values. For that alone, they

should demand justice.

* HERBERT MOLANO is a resident of Glendale.