The Brief

Inglewood city officials are launching an audit of their financial relationship with SoFi Stadium and claiming the stadium could owe years of ticket taxes, one month after a judge voided the 2015 contract that brought the stadium to Inglewood. 

The Inglewood City Council voted unanimously Tuesday to commission the audit. Mayor James Butts said the move is a necessary next step after the court ruling, which threw the terms of the financial relationship between the city and Hollywood Park stadium development into question. 

Millions of dollars are at stake for both the city and the stadium businesses. City officials say that the ruling means a cap that limited the amount of admissions tax that Inglewood could collect no longer applies. They also plan to investigate the authenticity of $376 million worth of infrastructure bills Hollywood Park claims the city owes. The findings of the audit could also factor into discussions of how the city will address its current $30.8 million deficit.

The City Council motion — put forward by Butts and co-sponsored by Councilmember Dionne Faulk — requires the city attorney to retain an accounting firm to conduct the audit and report back to the public on its findings within 30 days. It set aside $325,000 from the city’s General Fund to pay for the audit. You can read the city’s full explanation of the audit here.

Butts, who was at the city’s helm a decade ago when developer Stan Kroenke brought his Hollywood Park pitch to Inglewood, said city officials built what they thought was a partnership with their stadium counterparts.

But that partnership has crumbled. Since last summer, the city and stadiums have been slugging it out in a complex series of court cases over the stadium’s contract and Inglewood’s network of video billboards. The conflict has spilled over into the Nov. 3 election via ballot measures that would change the city’s commercial advertising and ticket tax rules. 

The audit approved by the City Council on Tuesday will dig into the entire financial relationship between the stadium and city since 2015, unpacking what is owed and what was received from taxes on everything from tickets to parking. City officials plan to continue auditing the taxes on a quarterly basis into the future.

Still, it’s not guaranteed the city would be able to force the stadium development to pay any debt the audit does claim. Hollywood Park could still appeal the court ruling that voided its contract with Inglewood, while Butts said the city wants to negotiate a new contract to replace it. 

A Hollywood Park spokesperson said the stadium development has lived up to its financial obligations, including paying all of its taxes.

“This is yet another thinly veiled attempt to distract from scrutiny surrounding the City’s own fiscal mismanagement and the questionable actions of its Mayor,” the spokesperson wrote in a statement.

Some locals at Tuesday’s meeting said during public comments they were baffled why the city hadn’t set up an audit process earlier.

“We have needed an audit from day one. We can’t sit here and claim we didn’t know or have an inkling what we were doing with Hollywood Park,” Diane Sambrano said. 

Exterior of Sofi Stadium in Inglewood

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Gary Coronado

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The LA Local

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Speaking during the meeting, Butts said the audit was triggered because of the void left by the development agreement and because major events including the 2027 Super Bowl and 2028 Olympics are about to hit Inglewood.

The mayor first claimed the development agreement was illegal in a letter written directly to Stan Kroenke last year, saying the city’s lawyers made the determination while researching billboard litigation.

Millions in tax revenue at stake

After the judge ruled in agreement with the city, Butts told The LA Local that city officials were still researching the specific implications of the court’s ruling. In Tuesday’s council motion, city staff highlighted what they say is one major change they’ve discovered: There’s no longer a limit on how much admissions tax the city can collect.  

Inglewood collects a 10% tax on tickets sold at SoFi Stadium, but the 2015 initiative that brought the stadium to the city put a cap on that revenue, starting at $15 million a year and increasing annually with inflation. 

The admissions tax cap also happens to be the subject of the current ballot Measure AT. WOW Media, the billboard operator allied with the city in its dispute with the stadium, is funding a campaign in favor of the initiative.

Admissions tax has been a sizable revenue stream for the city — bringing in an average $20 million a year since SoFi Stadium opened — but city officials have said it could be significantly bigger. A city analysis of Measure AT estimated that getting rid of the cap could bring in as much as an extra $50 million in future years. The city did not estimate how much admissions tax revenue it has missed out on while the development agreement was in effect.

The Inglewood audit seeks to clarify basic questions about how taxes are assessed on ticket sales and whether those taxes are actually forwarded to the city. Officials say it will provide transparency about ticket sales, pricing and fees, which have been heavily scrutinized in recent years across the state. 

Gray gets support on proposal for future billboard revenue audit

Councilmember Gloria Gray attempted to amend the audit motion Tuesday, asking the city manager to also audit the revenue the city gets from billboard fees.

“I believe the same standard of financial transparency should apply to every city agreement,” Gray said.

Though her motion didn’t receive a second, Councilmember Eloy Morales said he’d support putting a billboard revenue audit on the council’s agenda in the future. 

“I think we all support all those audits,” Morales said. 

Gray’s move was a rarity for a council that seldom debates motions during public meetings and almost always votes unanimously. The councilmember is currently running for mayor against Butts.

Inglewood pulls in as much as $8 million a year from billboards, according to budget records. Much of that comes from a series of deals the city cut with WOW Media, allowing the billboard company to construct and operate the billboards on public medians and sidewalks. In return, WOW gives the city a cut of ad revenue along with other concessions.

The post Inglewood is investigating if SoFi Stadium owes years’ worth of ticket taxes appeared first on LA Local.

Democratic Sen. Chris Van Hollen of Maryland said Thursday that he will run for Senate Majority Leader in the next Congress, setting up a challenge to Democratic Leader Chuck Schumer after the party swept to power in the midterm elections.

Van Hollen said in a statement that “the American people called for change” and that is why he is running.

“It’s now on us to meet this moment, and to do that we need new leadership,” Van Hollen said. “This is not about any one person — it’s about answering the call of the American people. That is why I’m running for Senate Majority Leader.”

Van Hollen’s challenge comes after he said he was considering a bid and after Schumer has said he has the necessary support to win. The closed-door, secret-ballot election will be held in early December.

The race will be the first contested election for Democratic leader in decades. The question of whether to reelect Schumer has already divided the caucus and many senators will not say publicly how they will vote. They have privately deliberated about what message to take from the election, and Schumer recruited many of the party’s winning candidates and raised money for them.

Schumer has been talking to Democratic senators since the election about forming an agenda for 2027.

“I’m going to win it,” Schumer told The Associated Press in an interview last week.

The Los Angeles Unified School District may lease spaces in its elementary, middle and high schools to use as childcare spaces for babies. 

The district is putting together a list of qualified providers and looking to identify spaces it could lease.

Ranae Amezquita, executive director of the district’s early childhood education division, said once the district has a list of spaces, it will start a request for proposal process that childcare providers can apply to during the 2027-2028 school year.

Why is LAUSD looking to expand childcare options now?

In April, LAUSD board members passed a resolution in an aim to expand childcare and early education slots in the district.

The district currently runs about 90 preschools, called early education centers, for children 2 to 4 years old, but it has only four centers that serve children under 2. “The problem with infant care — the reason we can't open them ourself at this time, is because of the cost,” said Amezquita at a board meeting Thursday.

The need for local infant and toddler childcare is high. In 2022, L.A. County assessed that the county only had enough licensed spaces to care for 4% of kids under 2. At the same time, the district has been facing declining enrollment amid lower birth rates. The resolution to expand early childhood care aims to, in part, strengthen the enrollment pipeline into the district.

Learn more about affordable childcare in LA

• For many California parents, paying for childcare means racking up credit card debt
• Why childcare in California may get harder to find

In an extraordinary turn of events, the state’s judicial watchdog has removed Judge Robert Draper, 84, from the Los Angeles County Superior Court after 14 years of service. He faced several counts of misconduct prior to losing reelection earlier this year.

The California Commission on Judicial Performance concluded Tuesday in an 87-page decision that Draper engaged in 17 instances of behavior that made him no longer fit for office. He hasn’t heard a case since 2023 because of the issues.

“Judge Draper persistently violated the standards governing judicial behavior and engaged in extensive and severe misconduct,” the commission said in a statement, adding that it was “aggravated by his refusal to accept responsibility for his misconduct, and his lack of insight or remorse for his misconduct and its effect on others.”

Draper previously admitted to some of the claims and denied others in interviews with LAist earlier this year. In a statement this week, he called the decision “deeply disappointing.”

“Any individual put under such intense and meticulous scrutiny likely would find themselves in a similar situation, albeit with slightly different facts,” he said.

Draper said the investigation came at a time when he raised concerns within the judiciary, and that it was used “presumably for purposes of dismissing his dissent by discrediting him.”

He plans to pursue “other avenues” to change the system, according to the statement. Draper's attorney declined to share what those would be.

 “It’s very rare for a judge to be removed from the bench,” said Laurie Levenson, a professor at Loyola Law School. “It’s the ultimate sanction against a judge.”

The commission has only removed 15 judges since it gained the authority to do so in 1995, according to its records, with the last for an L.A. County Superior Court judge happening in 2006.

The misconduct

The decision comes after a yearslong investigation and legal proceedings with independent evaluators. Prior to that, Draper had never been disciplined. According to the commission, his long list of misconduct includes:

• Making “offensive” and “insensitive” comments in court about race and gender.
• Sending “abusive” emails and unnecessary graphic pictures of his naked backside to colleagues.
• Acting with “deliberate defiance of his presiding judge’s orders” by continuing to access court systems and work on cases while on involuntary leave.

Some allegations the commission reviewed were dismissed for lack of evidence, including one that he inappropriately touched an attorney’s hair.

What happens next

While Draper lost reelection, his seat is now empty sooner than usual. Judge-elect Tal Khan Valbuena is on deck to replace him in January.

It’s possible Gov. Gavin Newsom may decide to appoint Khan Valbuena sooner. The court could also move another judge into his department.