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LA Weekly misleads readers on UPS coming to Compton

1360792691_comptonLA Weekly thinks its awesome that UPS is headed to Compton.  The mayor and her public relations team have sent over comments to LA Weekly regarding the announcement that UPS is coming to the Brickyard South Bay parcel.  Tax breaks played a HUGE role in the Forbes 500 company, ranked 47th on the annual list, agreeing to be a tenant.  LA Weekly journalist Dennis Romero, called the move a “corporate bonanza” but conveniently excluded the fact that UPS is only coming since the city agreed to give them back 30% of their sales tax receipts.  The city just passed a new sales tax measure that increased the current sales tax by 1%.

Related:  Welcome to the Brickyard South Bay 

“UPS coming to Compton provides tangible benefits to residents,” said Mayor Aja Brown. “Along with jobs and the tax revenues, UPS is going to continue its tradition of being a responsible and giving corporate partner. Their investment shows that they believe in Compton.”

Compton held a public hearing on the tax subsidy, which outraged residents, especially with an increased sales tax measure narrowly passing months prior.  In typical Compton city council fashion, the council approved the subsidy unanimously without regards to what the residents want.

The company pledged a $70 million dollar “investment” but according to the LA Weekly article, the investment will be made via equipment purchases.  City vendor HDL would be responsible for tracking down those purchases.

How will “equipment” help Compton’s financial bottom line?  The other question is when did Compton become part of the “South Bay”?

Read the full LA Weekly article by clicking here.

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4 Responses so far.

  1. Michael Hill says:

    Then again, I could just be writing out of my arse here. Time will tell, I guess. Read my previous post with a huge grain of sodium chloride maybe. IDK stuff anymore. I’m just a lost soul caught up in being irrelevant at an older age. Thanks.

  2. Michael Hill says:

    Why do they keep lying to us? Don’t they think eventually the chickens will come home to roost? The vendor isn’t known to most of us, so who are they and is this more of the smoke and mirrors regime taking advantage of a city and it’s residents again and again. Those speeches are getting under my skin now, since I read so well between the lines now. UPS doesn’t need tax breaks, but I’m sure the 1 cent sales tax increase is part of a greater plan that doesn’t include the average one of us. So sure of it now, but no clue on when or how it can be curtailed. Jackie Lacey, we need new eyes on some of the deals going through so slickly in Compton. Please help us before it’s too late. I think Amazon would have come instead but sales tax issues often kill the enthusiasm quickly. Always follow the money and it’s interesting where it eventually leads you. Sometimes to Club Fed in handcuffs. Sometimes elsewhere. Oh, she’s good, real good. Bought and paid for. Only a matter of time before overconfidence gets you an indictment. Ask Pat Moore and Paul Richards about that, maybe. They’re very experienced in such matters. And I’m afraid, we’re on that gnarly road, once again. Power, money and politics. Interesting bedfellows indeed. Oh, Bernie Madoff too, come to think of legends of the bamboozle. So let me read this LAWeekly article. Amazon probably bailed because they smelled something rotten in the mix. They’re no fools. And as soon as Amazon gives UPS the boot, and it’s coming, then UPS will take advantage of the sweetest deal since the Pilgrims landed on Plymouth Rock. I just hate to see things done with such impunity here. It stinks.

  3. CHRIS says:

    Between UPS and Trammel Crow we have companies with a combined revenue of $69.219 billion dollars that just ran through Compton like a high speed chase! That number tho’ – $69,219,000,000.00

    I think UPS was coming and nothing could stop it, especially considering the fact that the original plan (Amazon?) fell apart. UPS is a great company, but the way the deal is structured leaves many questions.

    1. UPS is #48 on the Fortune 500 with $58.363 billion in revenues last year. Did they really need a 30% break for 10 years?
    2. UPS is financially strong enough to absorb the cost of doing business in Compton. This means that either UPS didn’t really need that subsidy or that UPS is $58 billion strong because of these subsidies.
    3. How the heck do you raise the sales tax a full percent and then gloat that UPS is bringing in tax revenue and increasing the tax base? All that has happened is that corporations will receive tax breaks for locating here and the citizens will still be on the hook for permanent sales and property tax increases. We are paying for them when they should be paying for us. Nike is half the size of UPS, but look at what they do for Beaverton, OR and the University of Oregon.
    4. Why was Trammell Crow portrayed as the face of this deal? They are developer/managers. They are the middle men for corporations like UPS and Amazon. This was not a transparent negotiation. Keep in mind that Trammell Crow is a subsidiary of CBRE which is #259 on the FORTUNE 500 with $10.856 billion in revenue. $10,856,000,000.00
    5. Why can’t anyone on the dais get the story straight? Council/City Manager agreed that we had to offer the break to make it happen. But they couldn’t agree as to why. Check the tape. One person said it was because the PROPERTY TAXES are so high. Another said it’s because the SALES TAX is so high. Which is it? You don’t raise taxes and them blame the problem on TAXES. But Compton voted for that S**… ummmm, I mean mess!

    It was going to pass, but can we get at least one NO vote from the dais just on principle?

  4. Tomas Carlos says:

    During public comments this week,
    I asked the same question in a different from
    “UPS is investing $70mil back into their own business” how do the residents of Compton benefit from the tax break?
    An answer is still pending.

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