Council rescinds Greek Theatre extension, orders competitive RFP after referendum petitions

The Los Angeles City Council voted to rescind its prior approval of a five-year extension for the Greek Theatre contract and directed the Board of Recreation and Parks Commissioners to issue a competitive request for proposals (RFP).

Councilmember Wax, arguing that the council should avoid further delay and added expense, urged colleagues to “rescind this and go out to competitive bid,” saying the city would get the best deal by letting multiple bidders compete. City Attorney Walters told the council the petition opposing the contract had qualified for the ballot but that “the city's under no order not to take an action,” explaining the council’s two primary legal options: rescind the contract or place the matter on the ballot.

The discussion centered on several topics: whether litigation by opponents or by the contractor (referred to in the meeting as the Nederlanders) could prevent the council from acting, whether petition circulators had misled signers, and whether the contract was subject to referendum under the city charter. Walters summarized the legal claims she has seen in court filings: one allegation of deception by petition circulators and another that the contract was not subject to referendum because it was a department contract governed by charter section 390. Walters said those are the “primary” legal issues the litigation raises.

Councilmember Feuer framed the choice as one of public interest: he urged adoption of the motion to rescind and to direct the department to go to RFP, saying doing so would restore public confidence. Several council members noted the Recreation and Parks Commission had previously approved an extension and that the commission’s prior handling of the item — including a vote to extend the contract without competitive bidding — had drawn criticism. Councilmember Sekowsky and others said the RFP package was ready to go and that issuing it would be the most expeditious course.

Concerns about precedent were raised. Councilmember Holden warned that rescinding an action in response to a referendum petition could invite future petitions on other development or municipal projects and could hamper the council’s ability to govern. Councilmember Galanter and others emphasized the referendum as a component of the city’s charter process and said the council should respect the signatures collected; Galanter noted that counsel had confirmed the council’s two choices were to rescind or put the matter on the ballot.

After debate and a successful vote on the motion identified in the agenda as 34(b), the council approved the rescission and the direction to the Board of Recreation and Parks Commissioners to proceed with an RFP. The clerk recorded 14 ayes for 34(b).

The council also discussed the risk that rescission could expose the city to damages claims by the contractor; Walters said the city’s legal position is that a contract had not taken effect because the petition process had qualified the matter for the ballot, but she acknowledged courts may reach different conclusions and that claims for damages remain possible.

What the council voted to do: rescind its prior approval of the five-year extension for the Greek Theatre contract and direct the Recreation and Parks Department/Board to put the project out to competitive bid via RFP. The motion passed 14–0 according to the clerk’s tally recorded in the meeting minutes.

The council’s action does not itself resolve pending litigation or objections to the petition; those legal matters will proceed in court.