There's no threat to Made in America's Los Angeles chapter yet, but city officials and residents are raising eyebrows with regards to how the office of Mayor Eric Garcetti managed to get the festival approved in what promoter Jay Z described as "record time."
At the fore is the relationship between Garcetti, a democrat, and Live Nation CEO Michael Rapino. The latter is a huge democratic booster, both to Garcetti's cause and other politicians. Wary onlookers can't help but feel that the rapid approval of the music festival is a byproduct of an uncomfortably close relationship between the pair. Things got more suspicious with an e-mail leaked by The Hollywood Reporter:
"[Received a] note from street services about a required petition from 51% of the neighbors. It has us all confused. We assume this is not needed since it is a city sponsored event?" asked Made in America lawyer Andrew Kupinse. Patricia Whelan of the neighborhood services division responded that "We have this handled. The neighbors consist of five entities, most of which are government. No worries on your end - I'll let Street Services know."
The problems in this case are almost entirely political however. Concerns brought forth from opponents, citing the sale of alcohol at the event and issues of damage to city property, should be less of a concern. Live Nation paid $1 million to the city in total to host the event, including $500,000 to rent Grand Park for two days, plus $500,000 for relevant city services. If anyone will lose money however, it will be Live Nation. Festivals in major urban areas have proven to benefit the host cities mightily. One example was this year's Electric Daisy Festival, which brought in an estimated $323 million to hotels, restaurants and other businesses in Las Vegas. The Ultra Festival in Miami can thank local businesses for keeping it running despite its 2014 incidents, thanks to the pressure applied by local businesses and the tourism industry. Coachella brings a significant number of visitors to the area but many end up camping on the grounds, whereas the more centrally located Made in America should lure guests to hotels in the area.
Nonetheless, the ethical issues at hand are troubling, and Garcetti should consider directing next year's theoretical event planning a tad more straight and narrow.
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