Mayor Vetoes Air Rights: Right Result, Wrong Reason

By Walter Moore, Candidate for Mayor of L.A.

Mayor Villaraigosa vetoed an ordinance that would allow builders to purchase "air rights" from the City to build especially tall buildings downtown. He did so, according to the L.A. Times, because, in the words of the paper, he believed the proposal failed "to give him an opportunity to review or reject projects spawned by the plan."

I'm glad he vetoed the ordinance, but not for that reason. The real problem with the "air rights" measure is that it is yet another unjustified and illegal tax.

If developers are willing to spend their own money -- as opposed to our tax dollars -- to build a tall building downtown, why should they have to pay the City extra to do so? After all, property taxes are already based on the market value of the property, so the increased floors are going to produce increased tax revenues anyway. Also, charging the developer extra is not going to change the building's environmental impact.

Tax hikes, moreover, require the consent of two-thirds of the voters. The "air rights" ordinance is nothing more than a tax on tall buildings. The City Council, however, did not even seek the voters' consent for this measure, much less secure the required two-thirds majority.

The Mayor should therefore veto this ordinance, not because he wants an increased say in development, but because it is an unwarranted, illegal tax, one that will prevent the efficient allocation of private resources.