2/01/2007

Airport Hospitality Enhancement Zone

There has been a major brouhaha in Los Angeles over a so-called "living wage" increase for hotel employees near LAX. A compromise has apparently been reached that will avoid a ballot measure on the problem. I noticed the item because the Los Angeles Daily News reported that part of the compromise would include the creation of an enterprise zone around the hotels near the airport. But the Los Angeles Times seems to have a clarification on the terminology:
The new legislation would create an "airport hospitality enhancement zone" that would make the hotels eligible for a variety of public incentives for infrastructure, marketing and neighborhood beautification. By tying the living wage to a zone whose businesses receive public benefits, the city could put the provision on a firmer legal footing.

But it is the fine print of the agreement that could have its greatest effect on the economy of the city. In essence, the legislation would establish a new system for considering expansion of the living wage, with the council having to study the economic effect under an elaborate process that would involve at least two economists, one selected by the chamber of commerce and one by the Los Angeles County Federation of Labor.