"The Producers" As Public Policy
Sounds GREAT, right? Sure it does, if you work for the City of L.A., and the money you're "investing" was earned by the city's taxpayers.
The City's Community Redevelopment Agency bought a dilapidated theater in Reseda two years ago for $1.3 million, courtesy of you, The Taxpayer. Now the agency is putting in another $4.35 million of your money, AND deeding the property to the CIM Group. If, and only if, the venture is "profitable" -- remember Art Buchwald and "Coming to America"? -- then CIM Group will repay the $4.35 million over the course of 25 years.
Hey, wouldn't you like a deal like that? Someone gives you $5.65 million in cash and property, and you pay back only part of it, over 25 years, IF your venture is profitable?
But hey: this does serve a very important public policy purpose. After all, people throughout this town are crying out for more community theater productions of "Waiting for Godot." Isn't that worth more money than you'll make in 10 years?
You can read all about it in the Daily News of June 28, 2006.