Comments
ERIC PREVEN’S NOTEBOOK - Wes Edens, the influential financier and co-founder of Fortress Investment Group, is also known for his ownership stake in the Milwaukee Bucks NBA team. His business ventures include a notable role in the development of the Brightline high-speed rail service in Florida. However, his ambitions have extended to a more controversial project: a high-speed train line designed to shuttle passengers directly from Southern California to Las Vegas casinos. This project, while promising to boost tourism and business, has faced criticism for its potential to prioritize profit over environmental and community concerns.
Hot!
Red Lobster Dropped Into the Boiling Pot of Private Equity
Does anyone really believe Wes Edens and his private equity backers will save Red Lobster? These guys aren’t rescuers; they’re the ones who drop companies into the boiling pot, watching them simmer while they extract whatever's left. As co-owner of Fortress Investment Group, Edens is poised to “save” Red Lobster as it faces bankruptcy, but his track record suggests otherwise. He's known for hollowing out companies to enrich himself and his backers.
Edens isn’t in this for Red Lobster's survival — he’s eyeing its prime locations, calculating how much profit he can squeeze from what’s left. Remember how he got control of LA County’s golf empire through his companies, Newcastle and Drive Shack, thanks to a sweetheart deal from the LA County Board of Supervisors? That debacle was so bad it drew scrutiny from the New York Times for privatizing public assets for a select few. Expect more of the same with Red Lobster.
This isn't about saving an American dining icon; it’s a classic play from the private equity handbook: strip assets, cut costs, and profit off the remains. Fortress’s history with other ventures, like Steak ’n Shake, shows a pattern: force bankruptcy, buy up debt, and drain every last penny.
Despite the optimistic spin from CEO Jonathan Tibus about emerging stronger from restructuring, 50 Red Lobster locations have already shuttered since the bankruptcy. Fortress is mapping out a “revival,” but don’t expect it to include most of Red Lobster’s employees or locations.
So, when Edens and his backers at Fortress claim they’re cooking up a comeback for Red Lobster, we should ask: will there be anything left after they’re done boiling it? If history is any guide, probably not. Instead, we'll see another American icon gutted for the financial gain of a few Wall Street profiteers.
Name-alikes:
Name similarities can indeed be vexing. Just ask anyone who’s confused a great Villanueva (Primo) with a scoundrel (former Sheriff Alex). Or the Alex Padilla who’s a U.S. Senator from California with Ackley Padilla, the Swiss repairman behind Nury Martinez’s broken clock. Any relation? Get him out of here. And then there’s Don Knabe, the former Supervisor, and his son, Matt Knabe, who is—wait for it—a lobbyist. The same Knabe enterprise. Matt’s job? Lobbying the very Board of Supervisors where his dad once called the shots. Surely, the honorable Zev Yaroslavsky, while he was on the Board, wouldn’t allow such a conflict of interest, right? A son lobbying a board of just five members? Preposterous! Sir, your time has expired.
But it seems Zev had his own irons in the fire. When he wasn't blocking dubious dealings, he was out on the links with Harvey Englander, Rick Orlov, and Jackie Lacey.
Confused yet? You’re not alone.
Eric's Golden Oldies:
County Liquor Czar:
As I scanned the 145-item agenda—a true testament to Chair Lindsey P. Horvath’s reign of disappointment—I couldn’t help but draw a vivid parallel to the sordid machinations of William G. Bonelli, the notorious liquor czar. Just as Bonelli once exploited his position to orchestrate a cocktail of bribes and backdoor deals in the liquor industry, today’s overstuffed agendas reflect a similar disregard for transparency and scrutiny.
Bonelli’s reign, marked by accusations of selling liquor licenses to mobsters and engaging in pay-for-play schemes, was emblematic of a time when political corruption was an art form. His method of stacking the deck in his favor—whether by peddling liquor licenses or maneuvering through smoke-filled backrooms—reminds me of today’s bloated agendas where critical issues are buried under a mountain of trivial matters. In Bonelli's day, it was about greasing palms for favors and licenses; today, it’s about shoving a dizzying array of issues through with little real oversight.
William G. Bonelli, the man who made selling liquor licenses a lucrative art form, would have appreciated the packed agendas, the slip-and-slide of deals made behind closed doors, and the polite nods to transparency. He would likely be lounging poolside at the Patio at the Sportsmen's Lodge, chuckling over a well-poured cocktail while pondering his next bribe. And not just any Bonelli—the other one, Frank G. Bonelli, who lends his name to the snoozy Frank G. Bonelli Regional Park in San Dimas, where excitement is measured in how fast the picnic tables get vacated.
Speaking of sly maneuvers, let’s not forget Wes Edens, in sheep’s clothing, quietly raiding county golf courses with Matt Knabe and dad Don teeing up assists. Meanwhile, city hall donor and wife Brianna cheered from the sidelines, which, of course, means making contributions to the firm's clients—a neat trick straight out of Bonelli's playbook.
And where was the Los Angeles Times? Too busy with its proverbial nose up the wrong you-know-what to cover any of this, even after I broke the story in the New York Times. Not a single word. Quite the oversight for a publication once known for its investigative chops. To be fair, they did publish a fascinating piece on Bonelli back in 2002 that’s worth a read for anyone interested in L.A.’s colorful past. You can find it here.
In both cases, the pattern is clear: a disdain for accountability, a proliferation of unchecked power, and a baffling ability to slip through the cracks of scrutiny. Just as Bonelli turned scandal into spectacle, today’s agendas are a farce, packed with so much that no one can tell what’s truly brewing underneath.
The good Rev. "Fighting Bob" Shuler once called Bonelli a “criminal who spoiled paradise.” Well, in our case, it's not paradise that’s spoiled, but democracy—overstuffed agendas and all.
Green Sheet: Can Probation Wait?
The report on the status of adopting a global plan for the Probation Department’s halls and camps—arguably the biggest, most badly infected sore spot on the county's plate—can conveniently wait until October 1. Why rush, after all, when we're still decompressing from a summer of mega-events, globe-trotting on taxpayer dimes, and harvesting accolades?
Kudos to the Executive Officer (Top Sneak):
This one's a masterclass in high-degree-of-difficulty sneakery! The Board's last-minute decision to quietly cut the following line from a resolution is a true gem: "...and adopt and instruct the Chair to sign a resolution authorizing the Executive Director to apply for and receive State, Federal, or local funds, and execute all necessary agreements for use of such funds and take all related actions, including the execution of any necessary documents." So, why did the Board nix this language? Simple: the revision stealthily dodges the need to apply for all grants, especially in light of the recent Supreme Court ruling on "Grants Pass," which has stirred up a bit of controversy between the county and Governor Newsom—and maybe even Kamala Harris as she heads for the presidency. Shhh, though! It's a quiet Friday move to sidestep certain grants... Incidentally, Janice Hahn, who supported Kamala when it was not chic, is going to get a big Ambassadorship, we suspect... any guesses as to which country?
Increase and Sustain: (translation) Removal
Direct the Executive Director of the Homeless Initiative, alongside the City of Los Angeles, LA 2028, and other key stakeholders, to create a regional strategy by December 2025. This strategy should aim to increase and sustain the capacity to address unsheltered homelessness around major sporting event sites, without undermining existing encampment resolution efforts or reallocating already committed resources.
3-D:
So, the Board has finally decided to give the Los Angeles County Development Authority (LACDA) the go-ahead to handle the homelessness missions—using powers they approved back in January, February, and October. Plus, they’ve now given the green light for LACDA to grab grants and funds as long as they align with their objectives.
But seriously, since LACDA already runs the County’s housing, economic development, and business programs, how did it take this long for the Board to connect the dots?
ISDisappear:
Selwyn Hollins, the former ISD chief linked to MRT, has vanished, while Michael Owh steps in as Director of Internal Services at $351,401.85 annually. Meanwhile, the Board grants an exception to reemploy retired County employee Mark Martinez as a Senior IT Specialist at $100.34 per hour for up to 960 hours.
Item 92:
Recommend settling the federal and state civil rights lawsuit filed by Samuel Nelson for $7,000,000, which covers attorneys' fees and costs, to avoid further litigation risks and expenses. Total paid attorney fees to date are $160,682 and costs are $16,499. Samuel Nelson ("Plaintiff"), alleged excessive force arising out of Plaintiff's detention and arrest.
Item 85 is Nice but Sole Source...:
There are four sole source agreements—not generally in the public's interest—on Tuesday's agenda. Item 85 is nice enough... Barak Eilam is the American–Israeli CEO of NICE; he leads the company’s vision, strategy, growth, and innovation with over 8,500 employees globally serving 25,000 organizations in more than 150 countries. These guys are providing Networked Logging Recorder System Maintenance and Support Services, Sole Source. Not clear why the county checked the box as a first Sole Source contract when it appears to be another extension and amendment.
Job One: Stuffing Friendlies into Power:
Item 1 consists of 27 different appointments—mostly from Horvath and Hahn—to various commissions and committees. Unfortunately, the item lacks accessible resumes and applications linked, hindering scrutiny. It may be worth exploring if the NICE technology company could assist in making such documents available for review online. They are so smart!
Items 1D, 5, and 6:
...feature the name "Maclaren" in the context of affordable housing. But before you get too cozy with this name, remember that "Maclaren Hall" is code for the billions in liabilities from the prior youth camp fiasco. So, as we label this housing proudly, let's not forget the unspeakable baggage that is attached to that name.
Mayoral Flag Waving and Carbon Footprint Contradictions:
Mayor Karen Bass, our very own globe-trotting flag bearer, recently made headlines at the closing ceremony of the Paris 2024 Summer Paralympic Games. With the Paralympic flag in hand, she’s chalking up victories in our countdown to the 2028 Olympic Games. But as she racks up frequent flyer miles, we can’t help but wonder if civic pride is now measured in carbon footprints.
Bass in Paris for fourth time in a month with umbrella assistant.
So, what’s next for these illustrious flags? Expect more pomp and circumstance as they’re displayed in an Olympics-themed exhibit outside the Mayor’s office. The flags will be draped around the city like a poorly planned Christmas decoration, with an exclusive invitation-only ceremony on September 12th at City Hall. Nothing says community engagement like a closed-door event for the city’s elite.
Meanwhile, our elected officials have mastered the art of international travel. This summer alone, Mayor Bass, council members, and county supervisors visited France more times than an Air France pilot on overtime. From March’s preparation visit to August’s Olympic encore, and yet another trip for the Paralympics, our leaders seem more invested in their Parisian getaways than in real transparency back home.
Never mind that the Board of Supervisors is also recognizing “Sustainable Transportation Month” and “Clean Air Day” in Los Angeles County. As they soaked in Olympic wisdom—something Los Angeles has done twice already—we deserve a full accounting. Pictures of the suites and grand apartments, please. Were our leaders indulging in five-star luxury on our dime.
(Eric Preven is a longtime community activist and is a contributor to CityWatch.)
