Sponsors Deny Committing Funds to Specific Sites in Riordan Plan

The corporate sponsors paraded by Mayor Richard Riordan as key to a targeted economic development initiative said Thursday that they never agreed to channel their money into the 15 development projects that the city has touted as central to its strategy.

The initiative, unveiled with fanfare Wednesday and dramatically dubbed Genesis L.A., promises to funnel tens of millions of dollars of private capital into 15 “catalytic” development projects in the city’s poorest neighborhoods, creating jobs and erasing blight. But the corporate sponsors said Thursday that they never agreed to commit to those sites.

City officials have touted the strategy’s “focus” on the targeted sites, which range from empty lots to projects well on their way to development.

Wells Fargo Bank, Washington Mutual, Bank of America and the Department of Water and Power have pledged up to $10 million each to the initiative, but the three lenders said Thursday that the money is not tied to any specific projects.

The pledge is for “equity to support the development of commercial and industrial projects in low- and moderate-income neighborhoods across the city of Los Angeles,” said Bank of America spokesman Carey Walker. “We have not set aside funds for specific redevelopment projects.”

“We have not talked with the mayor’s office about any specific sites,” said Washington Mutual spokesman Adrian Rodriguez. “We are investing in an equity fund, basically.”

Added Wells Fargo spokeswoman Kathleen Shilkret: “We have not set aside any money for specific sites.”

While any equity investments in underserved areas will be a help to the city, the strategy loses its promised focus without a direct link to the target sites.

Asked earlier in the week whether the money was earmarked for the specific projects, Deputy Mayor Rocky Delgadillo said yes. On Thursday, he was more circumspect.

The city will get $1 million in seed money from each of the sponsors, which it can use for the projects of its choice. The rest is up in the air.

Delgadillo conceded that it is possible none of the remaining commitments will go to the touted projects, but said he believes that the city will convince sponsors otherwise.

“Ultimately they will decide where the money goes, but in my mind . . . I’m going to present to them undeniable opportunities for investment in these sites,” Delgadillo said. “We think that our public participation will make it so attractive to them that they will be at the table with their investments.”