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Questions about campaign funding raised in city council race

Paul Koretz, incumbent Los Angeles City Council Member, voted to approve a residential development whose backers have ties to a PAC which sent out campaign mailers supporting him. (Daily Bruin file photo)

By Madeleine Pauker

March 2, 2017 12:26 a.m.

Companies with financial ties to a $1.2 billion development project in South Los Angeles contributed to a political action committee supporting the re-election campaign of Westwood’s city council member.

A Feb. 16 campaign mailer for Councilmember Paul Koretz lists Sunset Health Realty, Elizabeth Place Holdings and Rosco Capital as contributors of $100,000 to the Progressive Growth PAC. The PAC used the funds to distribute a campaign mailer in support of Koretz.

Koretz, who is running for a third term to represent District 5, voted in November to approve construction of the Reef, a 35-story development on 10 acres of land in South Central Los Angeles. Ara Tavitian, a real estate investor developing the Reef, manages or is registered to the companies funding the mailer, according to the companies’ public filings.

Community members in South Central said they were concerned that the project would accelerate gentrification and rent increases in the area, according to ABC7. United Neighbors in Defense Against Displacement, a South Central community coalition, estimated the development could displace about 40,000 current residents.

The project will set aside 5 percent of its residential units for low-income residents. The project will also donate $3 million to South Central community programs and $15 million to an affordable housing fund.

Koretz said he does not know much about the Reef or anyone associated with it. He added his campaign cannot control the independent expenditures of PACs.

“I have no connections to (the Reef) whatsoever,” Koretz said.

Koretz added his challenger, Jesse Creed, received a campaign donation from his aunt, Donna Optican. A spokesperson for Koretz’s campaign claimed in a press release the donation violated the city’s election ethics code.

However, Mac Zilber, a consultant for Creed’s campaign, said the donation does not violate the code because Optican is Creed’s aunt – not an immediate family member. Zilber said the code only bans campaign contributions from immediate family members, such as spouses or children.

Contributing reports from Jacob Preal, Daily Bruin contributor.

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Madeleine Pauker | Managing editor
Pauker was the managing editor from 2017-2018. She was previously an assistant news editor for the City beat and a reporter for the City beat.
Pauker was the managing editor from 2017-2018. She was previously an assistant news editor for the City beat and a reporter for the City beat.
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