1 00:00:08,160 --> 00:00:12,560 Speaker 1: Welcome to Strictly Business, Varieties weekly podcasts featuring conversations with 2 00:00:12,640 --> 00:00:16,200 Speaker 1: industry leaders about the business of media and entertainment. I'm 3 00:00:16,239 --> 00:00:19,880 Speaker 1: Cynthia Littleton, co editor in chief of Variety. Today, my 4 00:00:19,920 --> 00:00:23,239 Speaker 1: guest is Rick Caruso. Caruso is a prominent real estate 5 00:00:23,239 --> 00:00:26,079 Speaker 1: developer who is in the final weeks of a hard 6 00:00:26,120 --> 00:00:30,240 Speaker 1: fought campaign against Congresswoman Karen Bass as both seek to 7 00:00:30,280 --> 00:00:33,760 Speaker 1: become the next mayor of Los Angeles. Bass has represented 8 00:00:33,800 --> 00:00:36,840 Speaker 1: Los Angeles and Congress for the past decade, and she's 9 00:00:36,880 --> 00:00:39,840 Speaker 1: had a long history in Los Angeles and California politics. 10 00:00:40,640 --> 00:00:43,519 Speaker 1: Bass has an open invitation to appear on Strictly Business, 11 00:00:44,120 --> 00:00:46,360 Speaker 1: the candidate was not able to make it work for 12 00:00:46,400 --> 00:00:51,640 Speaker 1: this episode by our deadline. Here Caruso outlines his view 13 00:00:51,760 --> 00:00:55,520 Speaker 1: of how entertainment intersects with the Los Angeles economy, and 14 00:00:55,600 --> 00:00:59,960 Speaker 1: we talk at length about the city's existential humanitarian crisis. 15 00:01:00,120 --> 00:01:03,440 Speaker 1: Is growing ranks of the unhoused on the streets of 16 00:01:03,480 --> 00:01:07,480 Speaker 1: Los Angeles has created an urban nightmare for civic leaders 17 00:01:07,560 --> 00:01:11,440 Speaker 1: and residents alike. Crusso and I spoke on October seventh 18 00:01:11,840 --> 00:01:15,080 Speaker 1: in his office overlooking the Grove Shopping Center in the 19 00:01:15,080 --> 00:01:27,920 Speaker 1: Fairfax District. That's all coming up after the break, and 20 00:01:28,040 --> 00:01:33,039 Speaker 1: we're back with l A mayoral candidate Rick Caruso. Rick, 21 00:01:33,080 --> 00:01:34,680 Speaker 1: you're in l A native. I don't have to tell 22 00:01:34,680 --> 00:01:39,600 Speaker 1: you how important entertainment is to the whole Southern California economy, 23 00:01:39,680 --> 00:01:43,240 Speaker 1: let alone the state's economy. As you are running for mayor, 24 00:01:43,520 --> 00:01:46,520 Speaker 1: how do you how do you assess the entertainment economy? 25 00:01:46,560 --> 00:01:49,320 Speaker 1: What's the good what's the bad for the for l 26 00:01:49,400 --> 00:01:53,920 Speaker 1: A's entertainment industry economy. Well, you know, there's a couple 27 00:01:53,920 --> 00:01:57,600 Speaker 1: of things. Um. One is what's critically important to me 28 00:01:57,960 --> 00:02:00,520 Speaker 1: is that when people think of l A for outside 29 00:02:00,520 --> 00:02:03,640 Speaker 1: of the United States and even outside of Los Angeles, 30 00:02:03,640 --> 00:02:07,520 Speaker 1: they think of Hollywood. And a vibrant Hollywood is incredibly 31 00:02:07,560 --> 00:02:10,400 Speaker 1: important to the vibrancy of the economy of Los Angeles. 32 00:02:10,440 --> 00:02:14,280 Speaker 1: It's also incredibly important to the branding of Los Angeles. 33 00:02:14,320 --> 00:02:17,600 Speaker 1: This is the land where dreams come true, and Hollywood 34 00:02:17,639 --> 00:02:20,480 Speaker 1: is the place that literally makes dreams come true and 35 00:02:20,600 --> 00:02:24,120 Speaker 1: transports people to better times. Uh. You know, through the 36 00:02:24,160 --> 00:02:27,880 Speaker 1: power of of movies and film and and everything else. 37 00:02:28,560 --> 00:02:30,320 Speaker 1: We need to do a better job in this city. 38 00:02:30,320 --> 00:02:33,000 Speaker 1: And I'm committed to as mayor to keep the content 39 00:02:33,080 --> 00:02:36,880 Speaker 1: creation in the city of Los Angeles. We're losing way 40 00:02:36,919 --> 00:02:40,000 Speaker 1: too much outside of the city. But it's also the 41 00:02:40,080 --> 00:02:43,360 Speaker 1: creating the jobs here in the city of Los Angeles 42 00:02:43,560 --> 00:02:47,520 Speaker 1: and not losing that to neighboring cities or cities across 43 00:02:47,560 --> 00:02:50,720 Speaker 1: the country. Um, the future of l a is tied 44 00:02:50,720 --> 00:02:54,040 Speaker 1: to the future of the entertainment industry, and I'm gonna 45 00:02:54,040 --> 00:02:56,680 Speaker 1: work hard to make sure we we bring it back here, 46 00:02:56,800 --> 00:02:59,760 Speaker 1: bring it home. As a developer, as a as a 47 00:03:00,040 --> 00:03:03,680 Speaker 1: developer of prominent spots like The Grove the Americana in Glendale. 48 00:03:03,800 --> 00:03:07,320 Speaker 1: You have always been known for incorporating entertainment a little 49 00:03:07,320 --> 00:03:10,200 Speaker 1: show business. Can you talk about sort of why that 50 00:03:10,320 --> 00:03:12,919 Speaker 1: was important to you and what you've learned about how 51 00:03:12,919 --> 00:03:16,880 Speaker 1: the entertainment industry works from your interactions and your relationships 52 00:03:16,880 --> 00:03:20,200 Speaker 1: with Hollywood. It's a great question because and I spoke 53 00:03:20,240 --> 00:03:23,080 Speaker 1: about this earlier today actually at a Hollywood Chamber of 54 00:03:23,080 --> 00:03:26,200 Speaker 1: Commerce meeting. What people may not know is that very 55 00:03:26,240 --> 00:03:28,840 Speaker 1: early on, I was inspired by everything that was happening 56 00:03:28,840 --> 00:03:31,200 Speaker 1: in Hollywood and the creation of the movies and how 57 00:03:31,240 --> 00:03:34,280 Speaker 1: they made the sets look and all of those things. 58 00:03:34,360 --> 00:03:37,840 Speaker 1: And I actually hired a set designer for one of 59 00:03:37,880 --> 00:03:42,360 Speaker 1: my projects out at the Commas of calabasas Um because 60 00:03:42,680 --> 00:03:45,720 Speaker 1: the set designers, they've got the job to make things 61 00:03:45,800 --> 00:03:50,240 Speaker 1: look real on film, right um. And so it's always 62 00:03:50,280 --> 00:03:52,920 Speaker 1: been an inspiration to me. And in every project that 63 00:03:52,960 --> 00:03:56,720 Speaker 1: we do, we wanted to feel like it's a place 64 00:03:56,800 --> 00:03:59,200 Speaker 1: that you're transported to a better place, that you can 65 00:03:59,240 --> 00:04:02,480 Speaker 1: be happy here. Are obviously safe in our properties, they're 66 00:04:02,520 --> 00:04:07,600 Speaker 1: claim they're enjoyable. Our job is defined as enriching lives, 67 00:04:07,680 --> 00:04:09,640 Speaker 1: which give us a permission to do a whole bunch 68 00:04:09,680 --> 00:04:12,320 Speaker 1: of things. And part of the whole bunch of things 69 00:04:12,320 --> 00:04:16,000 Speaker 1: that we do is entertainment at nights and the bands 70 00:04:16,200 --> 00:04:19,360 Speaker 1: and having great movies here and movies up in the 71 00:04:19,440 --> 00:04:22,480 Speaker 1: park at the Grove in the American that we've had 72 00:04:22,480 --> 00:04:25,440 Speaker 1: it also at the Palisades, and movies up at the 73 00:04:25,480 --> 00:04:28,120 Speaker 1: top of the parking structure. I mean, even when COVID hit, 74 00:04:28,760 --> 00:04:30,720 Speaker 1: because you couldn't go to a movie theater, we did 75 00:04:30,880 --> 00:04:33,839 Speaker 1: drive in movies on top of the parking structure and 76 00:04:33,880 --> 00:04:36,119 Speaker 1: it was just a great escape, you know, for people 77 00:04:36,200 --> 00:04:40,159 Speaker 1: during the middle of the pandemic. So I watched closely 78 00:04:40,200 --> 00:04:43,840 Speaker 1: what Hollywood does and I borrow from that, but I 79 00:04:43,920 --> 00:04:47,640 Speaker 1: believe that every one of our properties needs to be entertaining, 80 00:04:48,240 --> 00:04:52,640 Speaker 1: not an entertainment center, but entertaining, and we design and 81 00:04:52,720 --> 00:04:56,480 Speaker 1: operate with that. Lens. Do you have other people at 82 00:04:56,640 --> 00:04:59,960 Speaker 1: either big companies or individuals, prominent people in Hollywood? The 83 00:05:00,000 --> 00:05:02,760 Speaker 1: you feel like you have strong relations ships with I 84 00:05:02,839 --> 00:05:05,920 Speaker 1: feel like, give you an give you insight into the business, 85 00:05:05,920 --> 00:05:09,839 Speaker 1: how the business? Yeah, I mean, listen, I've got, you know, 86 00:05:10,040 --> 00:05:18,280 Speaker 1: long friendships with Brian Lord and Bob Iger and Jim Genopolis. 87 00:05:18,320 --> 00:05:22,800 Speaker 1: You know that I just love talking to and and 88 00:05:23,000 --> 00:05:25,159 Speaker 1: uh we share a lot of ideas and go back 89 00:05:25,200 --> 00:05:27,680 Speaker 1: and forth. There's a long list of people in the 90 00:05:27,760 --> 00:05:30,240 Speaker 1: entertainment industry on the executive side and also on the 91 00:05:30,240 --> 00:05:35,359 Speaker 1: talent side um, and you know, they're they're inspiring to me. 92 00:05:35,839 --> 00:05:39,919 Speaker 1: And I think about, you know, what they have to 93 00:05:39,960 --> 00:05:41,680 Speaker 1: do every day and what they did do as they 94 00:05:41,680 --> 00:05:45,279 Speaker 1: were running studios or in the talent world. Have to 95 00:05:45,279 --> 00:05:48,360 Speaker 1: be super creative and thinking outside the box. And that's 96 00:05:48,360 --> 00:05:51,720 Speaker 1: what I like being around is people that think outside 97 00:05:51,720 --> 00:05:55,640 Speaker 1: the box every day and solving solutions. And that's, you know, frankly, 98 00:05:55,680 --> 00:05:58,120 Speaker 1: the approach I'm going to take his Mayor. We've We've 99 00:05:58,160 --> 00:05:59,800 Speaker 1: been doing a lot of the same things and they're 100 00:05:59,800 --> 00:06:04,799 Speaker 1: not going well. And um, it's really about thinking new 101 00:06:04,880 --> 00:06:09,520 Speaker 1: and innovative, being creative, um, and having a different approach 102 00:06:09,520 --> 00:06:12,120 Speaker 1: to the problems that we need to solve. Have you 103 00:06:12,200 --> 00:06:14,680 Speaker 1: given much thought to how you know? Part of your 104 00:06:14,800 --> 00:06:17,680 Speaker 1: role obviously were you to be elected mayor, part of 105 00:06:17,680 --> 00:06:20,200 Speaker 1: your role as being an ambassador is selling Los Angeles. 106 00:06:20,600 --> 00:06:23,640 Speaker 1: Given a sense of how you would use the incredible 107 00:06:23,680 --> 00:06:28,080 Speaker 1: creative economy here as a selling tool for Los Angeles 108 00:06:28,120 --> 00:06:31,920 Speaker 1: outside of outside of California, Well, I do believe that 109 00:06:32,040 --> 00:06:34,520 Speaker 1: the mayor of Los Angeles has to be a cheerleader 110 00:06:34,520 --> 00:06:38,000 Speaker 1: for Los Angeles and use every tool they have in 111 00:06:38,040 --> 00:06:41,120 Speaker 1: their toolbox in order to do that. And the entertainment 112 00:06:41,160 --> 00:06:45,880 Speaker 1: industry is fascinating to people, right It's there's a lot 113 00:06:45,880 --> 00:06:48,360 Speaker 1: of interest, Yes, and there's a lot of interest because 114 00:06:48,400 --> 00:06:51,279 Speaker 1: it's it's magic land, and it's the creation of magic 115 00:06:51,360 --> 00:06:53,000 Speaker 1: and people want to be a part of that. And 116 00:06:53,040 --> 00:06:55,080 Speaker 1: of course I'm going to do that and pull in 117 00:06:55,800 --> 00:06:59,520 Speaker 1: not only the talent, but pull in the creative people 118 00:07:00,040 --> 00:07:03,320 Speaker 1: of the line below the line to attract of the 119 00:07:03,400 --> 00:07:06,080 Speaker 1: businesses to come here and be part of it. You know, 120 00:07:06,200 --> 00:07:08,760 Speaker 1: this is what I'm One of the things I'm so 121 00:07:08,839 --> 00:07:12,240 Speaker 1: excited about is we get the entertainment industry heading in 122 00:07:12,280 --> 00:07:15,120 Speaker 1: the right direction where more is happening in Los Angeles. 123 00:07:15,440 --> 00:07:19,200 Speaker 1: It just builds the economy, create jobs again below and 124 00:07:20,040 --> 00:07:23,240 Speaker 1: the line and above the line, new development goes on, 125 00:07:23,400 --> 00:07:27,880 Speaker 1: more housing happens, right and the lure, as you said, 126 00:07:28,080 --> 00:07:33,240 Speaker 1: of Hollywood is really powerful. And uh, that's a lure 127 00:07:33,320 --> 00:07:38,080 Speaker 1: that speaks to every country around the world. And I'm 128 00:07:38,120 --> 00:07:40,560 Speaker 1: going to use it to my best ability, I promise, 129 00:07:40,680 --> 00:07:42,480 Speaker 1: But I do want to be a cheerleader. I think 130 00:07:42,480 --> 00:07:44,120 Speaker 1: that's gonna be a real fun part of the job. 131 00:07:45,440 --> 00:07:50,320 Speaker 1: Um Hollywood to drilling down specifically, Hollywood is kind of 132 00:07:50,320 --> 00:07:54,280 Speaker 1: the ultimate, the original gig economy. It's a place where 133 00:07:54,280 --> 00:07:57,480 Speaker 1: a lot of people, certainly creative talent, work very much 134 00:07:57,520 --> 00:08:00,520 Speaker 1: on a project by project basis, on a freeland spaces. 135 00:08:00,560 --> 00:08:03,520 Speaker 1: In many cases, I in my own case, my own 136 00:08:03,560 --> 00:08:08,000 Speaker 1: small humbles, some freelance writing efforts have dealt with the 137 00:08:08,800 --> 00:08:13,320 Speaker 1: let's call it annoyance of having, you know, like city 138 00:08:13,360 --> 00:08:16,160 Speaker 1: business taxes come out of the woodwork. In terms of 139 00:08:16,160 --> 00:08:20,440 Speaker 1: people that work in freelance project by project basis, many 140 00:08:20,480 --> 00:08:22,600 Speaker 1: live outside of the city of l A because the 141 00:08:22,680 --> 00:08:26,120 Speaker 1: taxes they kind of nibble and death nibble them to 142 00:08:26,240 --> 00:08:29,040 Speaker 1: death in terms of city taxes, in addition to other 143 00:08:29,040 --> 00:08:32,920 Speaker 1: taxes that have obviously taxed on on freelance kind of revenue. 144 00:08:33,000 --> 00:08:37,760 Speaker 1: But have you given any thought to the gig economy 145 00:08:37,800 --> 00:08:40,640 Speaker 1: issues that affect more than entertainment, but do affect a 146 00:08:40,720 --> 00:08:43,800 Speaker 1: large people entertainment. Are there reforms there that could make 147 00:08:43,840 --> 00:08:46,959 Speaker 1: this just a little more business friend place to do 148 00:08:47,000 --> 00:08:48,960 Speaker 1: business and live in the Los Angeles if you're in 149 00:08:48,960 --> 00:08:51,880 Speaker 1: the creative economy, I've given a lot of thought to it, 150 00:08:51,960 --> 00:08:54,840 Speaker 1: and I actually, you know, live with it very close. 151 00:08:55,200 --> 00:08:58,840 Speaker 1: I have four children, and one of my sons is 152 00:08:58,880 --> 00:09:01,400 Speaker 1: in the movie business. He's a director and a writer, 153 00:09:01,679 --> 00:09:04,520 Speaker 1: so I understand that. And one of my other sons 154 00:09:04,760 --> 00:09:06,760 Speaker 1: is in the music business, where he's a writer and 155 00:09:06,800 --> 00:09:11,520 Speaker 1: a performer, and we do talk about this. It's crazy 156 00:09:11,559 --> 00:09:14,640 Speaker 1: to me what Los Angeles has done because we have 157 00:09:14,960 --> 00:09:20,640 Speaker 1: overregulated and over tax people to the point that they 158 00:09:20,679 --> 00:09:22,920 Speaker 1: have moved out of Los Angeles and all they have 159 00:09:23,000 --> 00:09:25,400 Speaker 1: to do is moved next door to Culver City or 160 00:09:25,440 --> 00:09:27,959 Speaker 1: go to Glendale. They don't have to go far away. 161 00:09:28,720 --> 00:09:31,360 Speaker 1: The city of Los Angeles in any city is a 162 00:09:31,400 --> 00:09:35,280 Speaker 1: competitive business, and we have to be competitive. We can't 163 00:09:35,320 --> 00:09:39,960 Speaker 1: be unduly taxed here and expect people wanting to stay here, 164 00:09:40,440 --> 00:09:43,559 Speaker 1: or unduly regulated and expect people wanting to stay here. 165 00:09:43,600 --> 00:09:47,240 Speaker 1: And I'll give you the best example, which really frustrates me. 166 00:09:48,120 --> 00:09:50,400 Speaker 1: You know, we went to we mean, the city of 167 00:09:50,400 --> 00:09:54,320 Speaker 1: Los Angeles went to Netflix Ted Sorrantos to build his 168 00:09:54,360 --> 00:09:58,040 Speaker 1: headquarters here. And my god, did he beautiful building right 169 00:09:58,040 --> 00:10:02,480 Speaker 1: in Hollywood. Yeah, the the biggest burst of economic activity 170 00:10:02,520 --> 00:10:05,160 Speaker 1: to come to Hollywood in many years, in many years. 171 00:10:05,280 --> 00:10:09,800 Speaker 1: One of the most prolific recognized studios content creators right 172 00:10:10,920 --> 00:10:15,439 Speaker 1: made an investment here. We lose Apple to Culver City. Now, 173 00:10:15,440 --> 00:10:17,560 Speaker 1: if I would have been Mary Los Angeles, I would 174 00:10:17,559 --> 00:10:20,200 Speaker 1: have been flying up and meeting with Tim Cook and 175 00:10:20,240 --> 00:10:21,880 Speaker 1: just say tell me what it's going to take to 176 00:10:21,920 --> 00:10:24,439 Speaker 1: be in l A. But what did we do to Ted? 177 00:10:25,160 --> 00:10:29,600 Speaker 1: We then have his headquarters surrounded by encampments, right and crime, 178 00:10:30,080 --> 00:10:33,040 Speaker 1: to the point that he has to ask his um, 179 00:10:33,840 --> 00:10:36,280 Speaker 1: his employees to take out their shoes because there's so 180 00:10:36,360 --> 00:10:38,560 Speaker 1: much waste on the sidewalks when they walk in the door. 181 00:10:38,679 --> 00:10:43,320 Speaker 1: It's just it's just unbelievable. We need to do a 182 00:10:43,360 --> 00:10:46,880 Speaker 1: better job as a city, not only attracting business to 183 00:10:46,920 --> 00:10:50,280 Speaker 1: stay here, but protecting business to stay here. And that's 184 00:10:50,320 --> 00:10:52,839 Speaker 1: if you're in a small business, a gig economy as 185 00:10:52,840 --> 00:10:55,679 Speaker 1: you call it, or if you're in a big business right, 186 00:10:55,720 --> 00:10:57,640 Speaker 1: because all of it adds up and it has a 187 00:10:57,720 --> 00:11:02,040 Speaker 1: multiplier effect. And what I line is this very vocal 188 00:11:02,120 --> 00:11:08,439 Speaker 1: campaign l A is the place to do business. Don't 189 00:11:08,440 --> 00:11:11,520 Speaker 1: go anywhere. We'll be right back with more from Los 190 00:11:11,559 --> 00:11:23,120 Speaker 1: Angeles mayoral candidate Rick Caruso. And we're back with more 191 00:11:23,400 --> 00:11:28,160 Speaker 1: from Los Angeles mayoral candidate Rick Caruso. Just in general, 192 00:11:28,200 --> 00:11:32,720 Speaker 1: as you assess the business climate in Los Angeles, what 193 00:11:32,800 --> 00:11:35,360 Speaker 1: do you think what do you think are outside of 194 00:11:35,360 --> 00:11:37,360 Speaker 1: the entertainment business? What do you think are like you know, 195 00:11:37,440 --> 00:11:39,439 Speaker 1: two three things that you think that you can do 196 00:11:39,640 --> 00:11:43,640 Speaker 1: on not day, one month one that would make a difference. Well, 197 00:11:43,679 --> 00:11:46,560 Speaker 1: I'm worried about the business climate in Los Angeles, especially 198 00:11:46,559 --> 00:11:49,760 Speaker 1: as we're in a global climate, certainly in the United 199 00:11:49,760 --> 00:11:52,640 Speaker 1: States where we have inflation, we have the fear of 200 00:11:52,640 --> 00:11:55,600 Speaker 1: a recession coming, whether it's big or small, it appears 201 00:11:55,640 --> 00:11:59,559 Speaker 1: that it's coming. Um, you know, everything is more expensive, 202 00:12:00,040 --> 00:12:02,240 Speaker 1: profits are squeezed if you have a big business or 203 00:12:02,240 --> 00:12:05,720 Speaker 1: a small business, certainly tougher for people to live. Affordability 204 00:12:05,760 --> 00:12:08,000 Speaker 1: as an issue, so I am worried about it, and 205 00:12:08,080 --> 00:12:10,640 Speaker 1: that's why somebody with a business background coming into the 206 00:12:10,640 --> 00:12:13,160 Speaker 1: Mayor's office is important to be able to understand these 207 00:12:13,240 --> 00:12:15,880 Speaker 1: kind of issues. What I can do about it is 208 00:12:15,880 --> 00:12:18,280 Speaker 1: certainly on the small business side. I want to reduce 209 00:12:18,640 --> 00:12:21,600 Speaker 1: the cost of doing business in the city. Um. The 210 00:12:21,679 --> 00:12:24,760 Speaker 1: fees and the costs are way too high. The regulation, 211 00:12:24,840 --> 00:12:27,880 Speaker 1: as we talked about, is way too much. Um. It 212 00:12:28,000 --> 00:12:31,559 Speaker 1: is uh an impediment for somebody to grow their business. 213 00:12:31,640 --> 00:12:35,160 Speaker 1: I want people to invest back in their companies, hiring, 214 00:12:35,240 --> 00:12:39,840 Speaker 1: creating jobs, and growing their businesses here. I started as 215 00:12:39,840 --> 00:12:42,560 Speaker 1: a small business with one employee, so I know what 216 00:12:42,679 --> 00:12:44,600 Speaker 1: it takes to operate a small business. I know what 217 00:12:44,679 --> 00:12:47,280 Speaker 1: it takes now to operate a big business, so I'm 218 00:12:47,280 --> 00:12:49,800 Speaker 1: in tune with those things. I did a business bill 219 00:12:49,840 --> 00:12:53,760 Speaker 1: of rights, small business bill of rights of the businesses 220 00:12:53,800 --> 00:12:57,640 Speaker 1: in Los Angeles or small businesses. We need to support them, 221 00:12:57,640 --> 00:13:00,520 Speaker 1: We need to streamline things. We all so need to 222 00:13:00,520 --> 00:13:04,080 Speaker 1: find creative ways to provide loans for small businesses to 223 00:13:04,120 --> 00:13:06,679 Speaker 1: grow in the city. Of Los Angeles, which I believe 224 00:13:06,760 --> 00:13:09,080 Speaker 1: we can do with the full faith and credit of 225 00:13:09,120 --> 00:13:11,559 Speaker 1: the balance sheet of the city, without the city taking 226 00:13:11,600 --> 00:13:15,760 Speaker 1: any risk. And so again from a creative standpoint and 227 00:13:15,800 --> 00:13:18,840 Speaker 1: from a business person standpoint, I deal with those challenges 228 00:13:18,920 --> 00:13:22,520 Speaker 1: every day. I know what we need to unbundle. Also, 229 00:13:22,720 --> 00:13:26,000 Speaker 1: having an office within the Mayor's office that is just 230 00:13:26,200 --> 00:13:31,520 Speaker 1: focusing on supporting and helping small businesses getting permits, getting entitlements, 231 00:13:31,559 --> 00:13:35,599 Speaker 1: being able to grow in a streamline fashion, having an advocate, 232 00:13:36,600 --> 00:13:40,240 Speaker 1: and most importantly is a culture change where you throw 233 00:13:40,320 --> 00:13:43,439 Speaker 1: the doors open at city Hall and say you are 234 00:13:43,520 --> 00:13:47,480 Speaker 1: welcome in the city. Big or small or medium sized businesses, 235 00:13:47,880 --> 00:13:51,160 Speaker 1: tell us how we can help you. There's so many 236 00:13:51,400 --> 00:13:54,960 Speaker 1: multiple layers of what needs to be done in terms 237 00:13:55,040 --> 00:13:59,160 Speaker 1: of clean and safe transit so people can move around 238 00:13:59,160 --> 00:14:03,000 Speaker 1: this city and build to business, reduction of crime, reduction 239 00:14:03,040 --> 00:14:08,360 Speaker 1: of homelessness, affordability, building apartments in homes that actually people 240 00:14:08,400 --> 00:14:10,440 Speaker 1: can afford to buy so they can live in the 241 00:14:10,520 --> 00:14:13,080 Speaker 1: city as they're growing their business in the city. So 242 00:14:13,480 --> 00:14:15,880 Speaker 1: I could go on and on. It's a long list, 243 00:14:15,920 --> 00:14:19,000 Speaker 1: but I'm excited about tackling it. You have you clearly 244 00:14:19,000 --> 00:14:21,800 Speaker 1: have the business perspective of doing business in Los Angeles 245 00:14:21,880 --> 00:14:24,720 Speaker 1: and in the region. You have that perspective. To those 246 00:14:24,720 --> 00:14:28,120 Speaker 1: who would say you don't have the public policy background, 247 00:14:28,160 --> 00:14:30,360 Speaker 1: you don't have you don't have the experience of the 248 00:14:30,400 --> 00:14:34,480 Speaker 1: skills to to get policy through, to work with other 249 00:14:34,520 --> 00:14:38,560 Speaker 1: policy makers. To to those that would say you don't 250 00:14:38,560 --> 00:14:41,160 Speaker 1: have those qualifications, what would you say to that? I 251 00:14:41,200 --> 00:14:46,200 Speaker 1: would say that they're incorrect because I've served under three mayors. 252 00:14:46,480 --> 00:14:48,760 Speaker 1: I served under Tom Bradley when I was twenty six 253 00:14:48,800 --> 00:14:52,640 Speaker 1: years old. I was the youngest commissioner in the history 254 00:14:52,640 --> 00:14:55,920 Speaker 1: of the city. Worked very closely with Tom Bradley. He 255 00:14:56,040 --> 00:14:59,680 Speaker 1: was a mentor of mine Um and ran DWP president 256 00:14:59,720 --> 00:15:02,440 Speaker 1: of the Apartment of Water and Power. I was then 257 00:15:02,520 --> 00:15:04,840 Speaker 1: asked by Dick Reardon as mayor to go back to 258 00:15:04,920 --> 00:15:08,760 Speaker 1: DWP during the times of deregulation when the department was 259 00:15:08,840 --> 00:15:13,000 Speaker 1: threatened in terms of going bankrupt, and turned the department around. 260 00:15:13,600 --> 00:15:17,440 Speaker 1: Very much involved with policy, raparian policy and power policy. 261 00:15:17,760 --> 00:15:20,920 Speaker 1: We build power plants, we retool power plants to make 262 00:15:21,000 --> 00:15:24,520 Speaker 1: them green. I've been through that process. I settled the 263 00:15:24,520 --> 00:15:27,240 Speaker 1: water rights issue with in your County. That was a 264 00:15:27,280 --> 00:15:32,640 Speaker 1: longstanding lawsuit for decades and decades was Supervisor Campbell up 265 00:15:32,680 --> 00:15:34,800 Speaker 1: there that nobody else could cut through, and he and 266 00:15:34,840 --> 00:15:37,400 Speaker 1: I found a way to settle that which was a 267 00:15:37,440 --> 00:15:41,880 Speaker 1: meaningful positive thing for the environment and also for water 268 00:15:42,000 --> 00:15:44,960 Speaker 1: rights to the city and Inyo County, always an important 269 00:15:45,000 --> 00:15:48,520 Speaker 1: thing around here. Well, you know, I was dealing with 270 00:15:48,640 --> 00:15:52,240 Speaker 1: environmental issues long before they were popular UM and running 271 00:15:52,280 --> 00:15:54,680 Speaker 1: DWP and I'm proud of my track record there with 272 00:15:54,720 --> 00:15:58,480 Speaker 1: Tom Bradley and in taking out coal burning plants from 273 00:15:58,480 --> 00:16:01,680 Speaker 1: the basin of Los Angeles, and under my leadership with 274 00:16:01,720 --> 00:16:04,840 Speaker 1: Mayor Bradley, we need to convert those again. I believe 275 00:16:04,880 --> 00:16:07,720 Speaker 1: the hydrogen we converted into gas now we have hydrogen 276 00:16:07,800 --> 00:16:11,480 Speaker 1: technology which is being tested an inter mountain power project 277 00:16:11,840 --> 00:16:15,680 Speaker 1: which was built while I was at president of DWP UM, 278 00:16:15,720 --> 00:16:18,200 Speaker 1: and I'm hopeful that we can now convert to hydrogen. 279 00:16:18,240 --> 00:16:21,920 Speaker 1: That would be a priority of mine. Water rights critically 280 00:16:21,960 --> 00:16:25,480 Speaker 1: important in the basin here. UM. And then also you 281 00:16:25,520 --> 00:16:28,840 Speaker 1: know I served under Jim hannas president of Los Angeles 282 00:16:28,920 --> 00:16:33,160 Speaker 1: Police Department, reformed it, brought in Bill Bratton, viewed as 283 00:16:33,200 --> 00:16:38,080 Speaker 1: the best chief in the country, dropped crime by instituted 284 00:16:38,160 --> 00:16:42,160 Speaker 1: community policing, great respect for every community in Los Angeles, 285 00:16:42,640 --> 00:16:46,120 Speaker 1: a lot of good preventive measures that dropped crime in 286 00:16:46,200 --> 00:16:49,880 Speaker 1: Los Angeles two levels not seen since n There is 287 00:16:50,000 --> 00:16:53,040 Speaker 1: no more pressing issue. And I say that as a native. 288 00:16:53,720 --> 00:16:55,640 Speaker 1: In deciding to run from here, you must have done 289 00:16:55,640 --> 00:16:58,520 Speaker 1: your own analysis as to what rent wrong in order 290 00:16:58,560 --> 00:17:00,720 Speaker 1: to figure out how you can make it, how you 291 00:17:00,760 --> 00:17:03,080 Speaker 1: can help make it better. There's no magic wands here, 292 00:17:03,120 --> 00:17:06,119 Speaker 1: but how what process can be made better? So let 293 00:17:06,119 --> 00:17:08,760 Speaker 1: me start by asking you what do you think went 294 00:17:08,840 --> 00:17:12,159 Speaker 1: wrong over the last three years or so to what 295 00:17:12,440 --> 00:17:16,200 Speaker 1: to see what we see now today in neighborhoods where 296 00:17:16,720 --> 00:17:20,240 Speaker 1: people could not have imagined what four years ago. Seeing 297 00:17:20,320 --> 00:17:24,840 Speaker 1: what we see now regularly well as we all know 298 00:17:24,920 --> 00:17:28,240 Speaker 1: what's happening out there on the streets is inhumane and 299 00:17:28,520 --> 00:17:32,800 Speaker 1: it is heartbreaking to see men and women and families 300 00:17:32,840 --> 00:17:35,200 Speaker 1: now living on the streets and dying on the streets. 301 00:17:35,520 --> 00:17:38,080 Speaker 1: It angers me quite frankly. It's one of the reasons 302 00:17:38,080 --> 00:17:42,879 Speaker 1: I'm running is to fix that problem. What when wrong 303 00:17:43,000 --> 00:17:46,960 Speaker 1: is uh, Frankly, we did not have good decision makers. 304 00:17:47,080 --> 00:17:52,879 Speaker 1: Are elected leaders failed to make good, strong and compassionate decisions. 305 00:17:53,480 --> 00:17:57,000 Speaker 1: They were misguided. They were doing. Frankly, what I think 306 00:17:57,200 --> 00:18:00,440 Speaker 1: was viewed as politically correct rather than doing what is right. 307 00:18:01,440 --> 00:18:05,160 Speaker 1: We failed to build enough housing in California and Los Angeles. 308 00:18:06,240 --> 00:18:08,760 Speaker 1: We have failed to give the right services to those 309 00:18:08,760 --> 00:18:11,680 Speaker 1: who have fallen on the street and allow them to 310 00:18:12,200 --> 00:18:15,840 Speaker 1: live of life. Um that is just as inhumane as 311 00:18:15,840 --> 00:18:19,120 Speaker 1: it can be. And we have listened to a lot 312 00:18:19,160 --> 00:18:23,040 Speaker 1: of people, honestly that believe they're doing the right thing 313 00:18:23,119 --> 00:18:26,000 Speaker 1: for people living on the streets. But they're not because 314 00:18:26,080 --> 00:18:30,199 Speaker 1: every study that I have read and every city that 315 00:18:30,280 --> 00:18:33,080 Speaker 1: I have looked at, just like anybody in business would 316 00:18:33,080 --> 00:18:37,080 Speaker 1: look at or operating an enterprise, you look to best 317 00:18:37,119 --> 00:18:43,200 Speaker 1: practices what's working, and what works is bringing people off 318 00:18:43,240 --> 00:18:50,200 Speaker 1: the street, giving them safety, shelter, warmth, meeting them where 319 00:18:50,200 --> 00:18:54,000 Speaker 1: they are, don't judge them, build trust, and then give 320 00:18:54,040 --> 00:18:59,120 Speaker 1: them services mental health care services, drug addiction services, retraining. 321 00:19:00,200 --> 00:19:02,840 Speaker 1: What we've been doing is providing those services on the 322 00:19:02,880 --> 00:19:06,760 Speaker 1: street without housing them. And all you're doing is it's 323 00:19:06,800 --> 00:19:10,359 Speaker 1: a cycle that you're going through and it's three times 324 00:19:10,400 --> 00:19:14,040 Speaker 1: more costly to do that. So we could actually treat 325 00:19:14,280 --> 00:19:17,159 Speaker 1: three times the amount of people for the same amount 326 00:19:17,200 --> 00:19:20,159 Speaker 1: of money if we bring them in and give them shelter, 327 00:19:20,680 --> 00:19:25,280 Speaker 1: And that's what every successful city has done. I flew 328 00:19:25,320 --> 00:19:28,040 Speaker 1: back to New York just to me with Eric Adams 329 00:19:28,560 --> 00:19:36,120 Speaker 1: because New York is housing of their homeless l a city. 330 00:19:37,400 --> 00:19:40,720 Speaker 1: Shame on our elected officials for allowing that to happen, 331 00:19:41,240 --> 00:19:44,720 Speaker 1: and the problem is growing. We're not regulating the sale 332 00:19:44,720 --> 00:19:48,280 Speaker 1: of drugs on the street. We're over impacting our police, 333 00:19:48,720 --> 00:19:52,920 Speaker 1: were over impacting fire and paramedics to exhaustion, and we're 334 00:19:52,960 --> 00:19:56,119 Speaker 1: impacting every community and just in terms of operating a 335 00:19:56,160 --> 00:19:59,639 Speaker 1: business or running a family, where you want to have 336 00:20:00,119 --> 00:20:04,400 Speaker 1: sense of safety, um and your area to be livable. 337 00:20:04,960 --> 00:20:08,000 Speaker 1: So this is the number one issue that I'm going 338 00:20:08,040 --> 00:20:10,960 Speaker 1: to deal with on day one. Based on what I've 339 00:20:10,960 --> 00:20:15,240 Speaker 1: seen out there, it is absolutely solvable if somebody is 340 00:20:15,280 --> 00:20:19,920 Speaker 1: willing to make very humane, tough and smart decisions. You've 341 00:20:19,960 --> 00:20:22,439 Speaker 1: said that you would declare a state of emergency on 342 00:20:22,600 --> 00:20:24,639 Speaker 1: day one. What are some of the things, What are 343 00:20:24,680 --> 00:20:27,720 Speaker 1: some of the things that you could do on day one, week, one, 344 00:20:27,800 --> 00:20:31,480 Speaker 1: month one to make a difference. Well, declaring a state 345 00:20:31,480 --> 00:20:36,280 Speaker 1: of emergency is important because I believe in accountability and 346 00:20:36,880 --> 00:20:39,159 Speaker 1: I want to I want to be held accountable and 347 00:20:39,280 --> 00:20:43,359 Speaker 1: have the opportunity and the authority to start fixing the 348 00:20:43,400 --> 00:20:47,480 Speaker 1: homeless problem right now. The decision making is between fifteen 349 00:20:47,480 --> 00:20:50,399 Speaker 1: different council members who are doing things fifteen different ways. 350 00:20:50,720 --> 00:20:53,000 Speaker 1: It's one of the reasons it's only getting worse, it's 351 00:20:53,000 --> 00:20:56,720 Speaker 1: not getting better. So state of emergency and then quickly 352 00:20:57,400 --> 00:21:02,240 Speaker 1: start building shelter, building nice areas for them to come 353 00:21:02,280 --> 00:21:06,080 Speaker 1: in off the street, higher five workers. So we're giving 354 00:21:06,119 --> 00:21:09,640 Speaker 1: the psychiatric care, we're giving the drug addiction care, we're 355 00:21:09,680 --> 00:21:15,639 Speaker 1: giving retraining opportunities. We're following exactly what's happening with great 356 00:21:15,760 --> 00:21:20,160 Speaker 1: organizations like People's Concern, which is on skid row also 357 00:21:20,200 --> 00:21:24,480 Speaker 1: in Santa Monica. Their success rate once they give shelter 358 00:21:24,720 --> 00:21:31,240 Speaker 1: and services is to not go back to homelessness. You 359 00:21:31,320 --> 00:21:34,200 Speaker 1: do not have to be a rocket scientist to say 360 00:21:34,280 --> 00:21:39,960 Speaker 1: let's start duplicating what's working. Downtown Women's Center serve five 361 00:21:40,200 --> 00:21:44,000 Speaker 1: thousand people a year. I've spent time with them, incredible work, 362 00:21:44,720 --> 00:21:48,560 Speaker 1: and I don't think people realize because I didn't thirteen 363 00:21:48,760 --> 00:21:51,480 Speaker 1: thousand women tonight we'll go to sleep on the streets. 364 00:21:51,760 --> 00:21:56,280 Speaker 1: Think about that. Thirteen thousand and the people in Downtown 365 00:21:56,359 --> 00:22:00,879 Speaker 1: Women's Center said far majority will get assault and that 366 00:22:01,040 --> 00:22:03,440 Speaker 1: all they're just trying to be safe through the night. 367 00:22:03,800 --> 00:22:09,040 Speaker 1: What a terrible tragic way to let people live right 368 00:22:09,560 --> 00:22:14,760 Speaker 1: And so they're doing God's work incredibly successfully. Let's duplicate that. 369 00:22:15,560 --> 00:22:18,200 Speaker 1: How do you pay for it? We're spending a billion 370 00:22:18,240 --> 00:22:21,880 Speaker 1: a year right now. L A city alone is spending 371 00:22:21,880 --> 00:22:24,479 Speaker 1: a billion a year, and the problem continues to get worse. 372 00:22:25,000 --> 00:22:29,000 Speaker 1: You reallocate the dollars to programming that works. You do 373 00:22:29,080 --> 00:22:32,840 Speaker 1: an audit. We are spending taxpayer dollars on average of 374 00:22:32,960 --> 00:22:36,520 Speaker 1: seven hundred thousand dollars per unit to build a housing 375 00:22:36,600 --> 00:22:40,040 Speaker 1: unit for the homeless. They could be built for sixty 376 00:22:40,520 --> 00:22:43,959 Speaker 1: a unit at boxable out of Las Vegas with innovation 377 00:22:44,359 --> 00:22:49,040 Speaker 1: on building techniques. The system is broken and the people 378 00:22:49,119 --> 00:22:51,760 Speaker 1: within the system will continue to do the same old 379 00:22:51,840 --> 00:22:55,399 Speaker 1: thing and the problems will continue to get worse. And 380 00:22:55,520 --> 00:22:58,679 Speaker 1: that really is the clear difference in the selection is 381 00:22:58,720 --> 00:23:02,920 Speaker 1: having somebody come in from the outside, new fresh ideas, 382 00:23:03,119 --> 00:23:07,080 Speaker 1: bold ideas. La Times said Crusoe's plan is bold, They 383 00:23:07,160 --> 00:23:10,560 Speaker 1: said Karen Bass's plan is unambitious. I think that says 384 00:23:10,600 --> 00:23:14,520 Speaker 1: at all we've got people dying, it's time for a 385 00:23:14,640 --> 00:23:18,720 Speaker 1: change and doing things differently, and that the frustrating thing 386 00:23:18,800 --> 00:23:22,200 Speaker 1: is the solutions are out there to be embraced. Let's 387 00:23:22,200 --> 00:23:26,359 Speaker 1: go embrace them. What would you like to there's something 388 00:23:26,440 --> 00:23:29,720 Speaker 1: about who you are, why you're running something you'd like 389 00:23:29,800 --> 00:23:33,520 Speaker 1: to leave listeners with. Why why you want this job? 390 00:23:34,760 --> 00:23:37,040 Speaker 1: I want this job because this is the city that 391 00:23:37,119 --> 00:23:39,760 Speaker 1: I love. It's the city that Tina and I have 392 00:23:39,840 --> 00:23:42,679 Speaker 1: raised our family, our four children here. It was the 393 00:23:42,760 --> 00:23:47,000 Speaker 1: city that allowed me to have the American dream. It's 394 00:23:47,040 --> 00:23:50,240 Speaker 1: the city that my grandparents immigrated to and Boil Heights, 395 00:23:50,880 --> 00:23:53,639 Speaker 1: and as modest as they were, my grandfather was a 396 00:23:53,640 --> 00:23:56,480 Speaker 1: gardener um. Their dream came true in the city of 397 00:23:56,600 --> 00:23:59,840 Speaker 1: l A. I want to work hard for a dollar 398 00:24:00,080 --> 00:24:03,159 Speaker 1: year and give back so more people in this city 399 00:24:03,560 --> 00:24:06,879 Speaker 1: their American dream can come true. And I'm confident I 400 00:24:06,920 --> 00:24:09,840 Speaker 1: can help, and I want the opportunity to help and 401 00:24:09,880 --> 00:24:12,960 Speaker 1: do it in the most caring, loving and dedicated ways. 402 00:24:20,119 --> 00:24:23,840 Speaker 1: Thanks for listening. Please leave us a review at Apple Podcasts. 403 00:24:23,920 --> 00:24:26,800 Speaker 1: We love to hear from listeners. Please go to Variety 404 00:24:26,840 --> 00:24:29,720 Speaker 1: dot com and sign up for the free Strictly Business newsletter, 405 00:24:30,240 --> 00:24:32,760 Speaker 1: and don't forget to tune in next week for another 406 00:24:32,800 --> 00:24:34,320 Speaker 1: episode of Strictly Business.