The City Council yesterday voted unanimously (8-0) not to hold closed session meetings discussing the possible leasing of the Long Beach Airport to a slew of financial investment firms. No dates have been announced, but the exploratory discussions will be held in public view.
Since news of the possible lease and closed meetings reached the public, many voiced their opposition and called for open discussions. Some Councilmembers spoke out against the meetings and even the lease itself. State law prohibits the City Council from making decisions about the City’s finances behind closed doors, so the closed meetings would have served only to discuss the nature of the deal.
A Federal Aviation Administration program makes it possible to privatize airports and lease them, an opportunity that has been intriguing to many cities struggling with budget trouble. But most are turned down and only Chicago’s Midway Airport is currently involved in the process, nearing completion of a 99-year lease that could net the city about $2.5 billion. Chicago has also successfully leased out bridges ($1.83B) and other structures.
City Manager Pat West announced that he had been contacted by several investment firms about the opportunity to make a deal and called the meeting, while Mayor Foster yesterday expressed that no offers or proposals have been made by either side.
Per Dan Weikel in today’s Los Angeles Times:
At Tuesday’s council meeting, citizens questioned the excuse from city officials that real estate transactions were going to be addressed, hence the discussion could be closed to the public under the Brown Act, the state’s open meetings law.
“This is not a real estate transaction,” said Melinda Cotton, a Long Beach citizen who addressed the council. “I don’t like the lack of transparency. The airport is the most controversial and litigious issue to come before this city.”
In other Council news, a decision was finally reached on the issue of citywide check cashing services that began more than six months ago. The Council voted 6-2 (Schipske and Andrews dissenting) to end the waiting period and force check cashing facilities to legally register with the City or face consequences.
Redevelopment Agency Executive Director Craig Beck issued a report requested by the Council back in June, but asked for more time to complete and polish his study. Councilmembers objected upon learning that 106 of 130 check cashing facilities in Long Beach are operating illegally, without proper licensing.
“The number is much more than we were expecting,” said Beck. “It’s prudent that the City go out and clean up its ordinance.”
Without registering for the City license, the facilities’ rates cannot be monitored, and Councilmembers voiced concerns that they unfairly overcharge customers.
By Ryan ZumMallen, Managing Editor