LA City Council OKs rental assistance for small businesses leasing city property

The Los Angeles City Council approved rental assistance Friday for small commercial tenants leasing property owned by the city, who were impacted by the COVID-19 pandemic.

The Council in a 10-0 vote to support the motion, initiated by Council members Curren Price and Paul Krekorian. Council members Bob Blumenfield, Marqueece Harris-Dawson, Nithya Raman, Monica Rodriguez and Hugo Soto-Martinez were absent during the vote.

The Council instructed its General Services Department to waive rent payments of lease contracts with for-profit, small business commercial tenants who leased property owned by the city between April 1, 2020 through June 30, 2021. Department staff will also reduce eligible rent payments by 40% for those businesses who leased with the city between July 1, 2021 through December 31, 2021.

Additionally, the department will provide credit for any rent paid prior to the effect of the motion that can be used toward future rent or overdue payments before or after the covered period.

Prior to the vote, Councilman Price called for a report back seeking to further “activate” the Los Angeles Mall and support small businesses there. As part of the report, city staff will provide recommendation for short term solutions that would make the mall a more “inviting location for events and the public.”

Price and Krekorian introduced the motion in November 2022 in an attempt to support businesses affected by the pandemic.

The city provided rent relief to tenants leasing commercial property such as those through the Proprietary Departments and the El Pueblo de Los Angeles Historical Monument Department, according to the motion.

The city waived rental payments for tenants at El Pueblo between April 2020 and June 2021, and they also received a 40% discount on their lease between July 2021 and December 2021.

However, the same relief was not provided to other small businesses with leases with the General Services Departments, such as those within downtown L.A. City buildings at the Van Nuys Civic Center, Department of Transportation parking structures and the L.A. Mall.

Many of those tenants offer services and food options to the surrounding civic center workforce, as well as for the public visiting and doing business within the city buildings, according to the motion.

Developed in the early 1970s, the mall offers retail and food services for thousands of city, county and federal employees, visitors to the Civic Center, jurors and downtown residents.

The COVID-19 pandemic caused a large decrease in visitors and business because so many people stayed home. Business and traffic has not returned to what normal activity was before the pandemic as much work remained remote.

The Council’s action aims to help businesses who owe back rent from 2020 to 2021, and ensure they stay open.

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