Show Me the Money: Wildfire Recovery Czar Tangles With L.A. Mayor Over Lost Salary

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The bond between Karen Bass, Los Angeles’ mayor, and Steve Soboroff, her appointee as the city’s chief recovery officer in charge of the initial phase of post-wildfire reconstruction back in January, is showing signs of strain.

Last week at an event, Soboroff – a past Los Angeles police commissioner and real estate developer – faced criticism regarding his proposed salary for the new role. This position was established to aid in rebuilding the city following the destruction caused by the Pacific Palisades and Eaton fires. Initially, it was reported that Soboroff would earn $500,000 for 90 days of work, but this news sparked significant public outrage when it was published in the Los Angeles Times. In response, Bass’ office issued a statement saying Soboroff had agreed to work without pay. However, according to the 76-year-old former real estate developer, this isn’t the complete truth.

Soboroff stated, ‘This disaster is among the costliest in American history,’ when justifying the proposed wage to a gathering of Harvard-Westlake alumni during a recent event held on the school’s lower campus, where his own children once studied.

Soboroff pointed out that it’s frequently the case for city advisors, in scenarios such as this, to receive payments ranging from low to high tens of millions from the city. Coincidentally, he was negotiating with an unnamed client at that time who was prepared to pay nearly a million dollars. By taking on the position of Chief Recovery Officer, he would have forfeited this substantial amount.

Soboroff and Bass’ office reached an agreement whereby he would be paid $500,000 for 90 days of work, which he notes is roughly half of his usual fee for a project of this scale. He stated, “You can either concur with it or dispute it. It was a significant sum, but it’s what I earned in my last three assignments and half of what I was already earning.

However, as per Soboroff’s statement, any debate regarding the $500,000 amount was irrelevant since the money was never available in the first place.

He shared with a gathering of roughly 50 individuals, “I’ve got messages like ‘everything is fine.’ ‘No, no, the contract is on its way.’ However, now I’m hearing a lot of ‘I told you so’s’ from some top-notch lawyers in Los Angeles.” After being given the runaround for several weeks, he eventually found out that there was no contract in place and learned, to his dismay, that they didn’t actually have the funds.

When news surfaced about his unpaid salary, which he claimed he wouldn’t receive regardless, Soboroff found himself with two options: “Go public, resign, and present my emails and texts as proof that I was deceived, or accept to work without pay and hope for reimbursement later.” He chose the latter option.

As a gamer, I’d rephrase it like this:

“Backtracking on my previous statements made on Feb 23, I admit that if I claimed I was deceived, then I was mistaken. That was an unintentional misstatement from me. There’s no concrete evidence suggesting the mayor intentionally misled me. I may have been let down by the turn of events, but I’ve decided to see this through till the end because it’s my responsibility to set things in motion.

A representative from the mayor’s office stated, “The recovery process is progressing faster than anticipated – it’s even the quickest large-scale debris cleanup operation recorded in recent state history. As we mentioned a few weeks back, the mayor requested Steve to adjust his contract, which he agreed to do, understanding that nothing should hinder the ongoing recovery efforts. Steve has always prioritized the residents of the Palisades and those employed there, and we are appreciative.

As a longtime admirer of the Los Angeles civic scene, I’ve been following Soboroff since his mayoral bid in 2001. Interestingly enough, he was one of the early champions for Karen Bass during her mayoral campaign. Lately, Bass has encountered a whirlwind of criticism over her choice to embark on an overseas trip with a Biden Administration delegation, just when we were under high wind advisory – a situation that could potentially escalate into a catastrophic disaster. It’s worth noting that the fires started only 24 hours after she returned from this trip.

Over the past week, I found myself reflecting on the surprising dismissal of L.A.’s Fire Chief, Kristin Crowley. In a public announcement, the mayor explained that on the day the fires erupted, approximately 1,000 firefighters who could have been on duty were sent home instead under Chief Crowley’s supervision. Moreover, the President of the Fire Commission requested an after-action report regarding the fires from Chief Crowley, a request she declined to fulfill. Given these circumstances, it seems that her removal from office was inevitable.

Some individuals, such as developer Rick Caruso who contested and lost against Bass in the mayoral election, perceive the dismissal of Crowley as an act of blaming the innocent. In a statement, Caruso expressed his appreciation for Chief Crowley’s service to Los Angeles, stating, “Chief Crowley faithfully served our city and openly discussed the damaging and hasty budget cuts made by the Bass administration to the LAFD. Her bravery in speaking the truth is admirable.” He further added, “The decision to disregard the warnings and jeopardize the city was solely the mayor’s.

Among Los Angeles’ real estate communities, there were many whispers suggesting Caruso and Soboroff had a chilly relationship. However, given the tension both men currently experience with Bass, this dynamic might be evolving. When asked about his relationship with Caruso, Soboroff replied, “I have great respect for Rick.” He went on to say, “Both of us work in similar areas, although he’s much more successful than I am. We approach our tasks differently: I cater to the masses and he caters to the elite. But that doesn’t mean one is right or wrong; I have respect for him, but we didn’t support each other in elections.

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2025-02-25 03:24