Councilman says AEG should pay for Michael Jackson memorial, city should weigh legal options

Los Angeles City Councilman Dennis Zine this afternoon called on Anschutz Entertainment Group, the owner of Staples Center, to cover the full cost of Tuesday’s Michael Jackson memorial in downtown Los Angeles.

“AEG has made this decision” to hold the memorial at its stadium, Zine said. “I don’t fault their decision. I’m just saying that it should be at their expense, not the taxpayers'.”

Zine argued that AEG, as Jackson’s concert promoter, should not add to the financial woes of the city, which has been trying to eliminate a $530-million shortfall.

“They were going to do the tour. They’re talking about marketing the rehearsal. AEG is going to, one way or another, make a lot of money,” he said.

An AEG spokesman did not immediately respond to a request for comment.

Zine, who represents part of the west San Fernando Valley, said he has asked City Atty. Carmen Trutanich to find out whether the city can take legal action to recoup its costs, which could top $2 million once police, paramedics, traffic officers and other city employees are factored in.

A Trutanich spokesman would not discuss what steps the city attorney plans to take, saying only that Trutanich and his staff are “researching all options available to the city for reimbursement for any costs involved with the event.”

-- David Zahniser at L.A. City Hall

Comments

[Abraham Thomas]

I agree with the councilman, the entertainment group should pick up the tab for the logiistical expence. After all, it could be a write off for them and they will difinitely make their money back.

Shakespeare

[weave160]

As much as this man has paid in taxes to the state of California and his estate will pay. You can't pay back one day to your most famous resident?

The amount of sales tax revenue from all of the fans descending on LA will easily offset the cost of the services the city will provide.

Councilman Zine you ain't bad, just beat it.

[J. Carson]

MJ's soul needs to rest in peace!

[Shemp]

Let's face it, this city is run by a bunch of morons. Villar is on safari with his latest tv booty (minutes after telling us how much work he would accomplish in his second term); and who knows where beantown Bratton is. so we're left with the intellectual wizardry of Jan Perry. God help us.

[rich]

I agree the city should not pay, but I believe that Jackson's estate should pay an equal amount as AEG

[Lilly]

I'm glad someone in government is actually working for me aka tax payer, Mr. Zine. Why LA residents should pay for Michael's final circus? AEG, Rev. Sharp, and Rev. Jackson should pay for this mess.

[E. Benefield]

Yes, but who paid for May Day? The legal tax payers.
Michael Jackson has brought much revenue to the city of Los Angeles.

[Sensibility]

I have always been proud of Councilman Zine. I mean come on, the city is in the middle of negotiating and determining whether to lay off more employees, adjust retirement packages and examining services that may need to be discontinued. And then they are going to be left holding the 2 million dollar bag? I DON'T THINK SO!!!

[BlossomEndRot]

Bravo Mr Zine. Once again, you have showed the public what our city leaders are elected to do. You are my hero, once again.

[Norm Silver]

I certainly support the theory that the city should research all options for some sort of reimbursement for the costs incurred by this memorial service decision. Many of this city's taxpayers do not feel strongly about the deceased nor about using hard earned taxpayers money to fund the opertaion for security for the memorial service or any discussions about any costs to design and erect a memorial of any kind. If the family and their spokespersons want this to happen they should form a committee to seek private donations to fund thes idaes. The notion expressed by outsiders is that this city is responsible for the security funding. In my opinion we are not.

[Don Mac Brown]

Yes! Councillman Zine should get the support of every Los Angeles taxpayer. The City Attorney should immeidately get busy on the legal process of recouping every dime of city money spent on the AEG event.

[Geno64]

AEG, must, and should pay for the Jackson circus; no question about it.

[RhodaRyder]

I agree with Councilman Zine. With more budget cuts projected by Sacramento, shouldn't city and county leaders put priorities on who pays for what is turning into a celebrity, media circus event? Is it fair to charge the cost of this event to the taxpayer? Public services have already been cut to locals, and this event forces locals to do without to please the celebrity and media crowd. Was Michael Jackson so greedy that he would approve of taking from the poor to satisfy costly tributes to himself?

[Bob A.]

OK…let’ say that AEG does pay…then….

AEG is entitled to the “profit” that the City realizes from the event.

What profit you say? Well according to CNN last night, the hotels in LA were about 60% full before the Jackson event. Now you cannot get a room in LA.

The city will collect an estimated 4 million dollars in bed taxes (according to CNN) as a result. If AEG pays for the event, they should be entitled to the profits from it, which is only fair.

So let’s do the math, Expenses: 2 million for security and traffic and 4 million profit from increased revenue. That, according to my LAUSD math nets a cool 2 million profit.

Is Zine willing to share the profit with AEG? I doubt it.

[Bunny Collins]

Surely the benefits of having so many people decend upon LA and spending multi millions on food, drink, accommodation, souvenirs etc. far outweighs the comparatively small amount it is going to cost the taxpayers? The complainers are making themselves look very small in the eyes of the world which is upon LA at this sad time.

[Happy]

With all of the local and state taxes, not to mention the current influx of fans from around the country stimulating Los Angeles' economy, because of his funeral and past events, why should his family or AEG pay for anything. LA should be grateful. But I am having a hard time understanding why LA is suffering when it has so many millionairs living there. It should be one of the riches cities in the world. Sounds like mismanagement of money

[Kevin]

Is'nt this what we pay police and city officials for? I'm having trouble paying my bills this month can I get a donation? If anyone is trying to make a profit I think it's the city. It's almost seems like they are trying to double dip where ever they can.

[Bruce Kiesling]

I agree that a private company should not be able to use public resources while in the process of making a profit. BUT, it should be noted just how much money the city is going to make in terms of sales/usage taxes, etc. from the influx of thousands and thousands of people who would not otherwise have been there except for the memorial service.

[Minister]

This memorial service will bring more people to the city $$$. I believe the city of Los Angeles and the surrounding area are going to make a few bucks, which will also generate funds back to the city government (taxes).

[DonJMac]

a breath of common since speak,Thank god for City Councilman Dennis Zine,He seem the be the only one in LA that is thinking about the tax payers,Thak you Mr. Zine, The best call since this zoo started.BUT, where have you been?

[Cristina Gray]

Yup, they should! Good for you, Mr. Zine, and Mr. Trutanich!

[Bill]

I agree with Zine on this one. AEG is undertaking a money making venture, with the public having to pay upwards of $4M to cover the costs? That is not right.

Also, it crazy that the family agreed to having it at the Staples Center. They should have chosen either the Rose Bowl or the Coliseum in order to accomodate as many fans as possible.

[Wendy]

Dennis Zine is 100 percent correct.

[weave160]

How many millions has Michael Jackson paid in taxes to California? He should be lying in state at the state capitol. You can't give him one day.
You're making millions with the influx of MJ fans descending on LA. Hotels, food, car rentals, souvenirs you're cleaning up.
Councilman Zine don't whine.
If your city had planned properly with AEG you might have been able to turn this into a week long tribute and make a couple of billion dollars for the city and state. Instead you're fighting a deficit with deficit thinking.

[Ces]

People were so outraged when the city was going to foot the bill for the Lakers parade-- A team which brings in millions of $$ in revenue for the city. If the Jackson family and AEG wanted a public memorial, they should foot the bill, they certainly have the funds to do so.

[Madeleine]

You go, Zine. The poorest among us will suffer because the richest among us won't fork it over.

[Kelvin]

Excuse me, but for once Zine is right. This was a hugely commercial venture for AEG and the Jackson 'family.' The worldwide TV rights were worth multi-millions, not to mention the 3,000 foreign press who all had to buy press rights to the Jackson Spectacular. AEG and the Jackson family are not a charity, and this was no charitable event. They should be made to pay something significant towards the cost of providing them with event and personal security.

[Kelvin]

Oh, and as for "The amount of sales tax revenue from all of the fans descending on LA " in case you were not watching, all the 'vendors' seemed to be street people who were not charging sales tax.

[dancingstarr]

I think that AEG and also possibly the Jackson family should pony up the costs of this ceremony. Asking the people of L.A. to cover these costs is outrageous.

[MLF]

People !!!!

Simple.

City of Los Angeles 20%
State of California 15%
AEG 40%
Jackson family 25%

No one group gets the total bill. :)

[MJ fan, but reality is reality]

I'm a fan of MJ's music, but that is where it ends. MJ paid major taxes to CA over the years, so what, we all pay taxes and he probably got good reductions in proportion. The city may make the money back in taxes, possibly. Does that mean you can force the city pay for security for a an entertainer, he's not curing a life threatening disease. What about all the other businesses that were affected by employees ditching work or late to work due to traffic closures. This entertainer's memorial should have been efficient and private, no need to celebritize his grieving children.

[Krish]

many are arguing that the city should pay for the bill because michael Jackson has paid a substantial ammount of taxes. I say this, as a taxpayer myself I would like to have a funeral at the expense of los angeles. The Jackson family and AEG had the option to have a private funeral which would not lead the city to having to add security, but opting for a public memorial was THEIR choice. Therefore, those who made that decision should pay for the almost 2 million dollar expense.

[Kathee]

AEG, and anyone else who profited, should have to pay!! (IMO) However, the city of LA is showing great class. It's not just that he paid taxes there, it's that MJ took his ENTIRE proceeds from that famous SuperBowl appearance, added $1.25 million to it, and DONATED IT, to help rebuild riot torn, LA.
Clearly, LA remembers who helped them rebuild the city. Good for you!!

[Emmanuel]

I think if AEG and the Jackson estate pays for the cost of the memorial they should also collect all the profit made from the the taxes generated by the memorial. The city cannot have their cake and eat it too.

People stayed at hotels, ate at restaurants and paid for parking to park their cars to attend the memorial. Will the city be willing to give those taxes and fees to AEG and the Jackson estate?

Plus, why did the city buy food in Wrightwood to feed the cops when there are tons of restaurants within the city limits of Los Angeles?