Arroyo improvements suffer, critics say

March 22, 2001

By Elizabeth Lee
Staff Writer

PASADENA - Over the objections of park advocates, the City Council has decided that the Rose Bowl and Brookside Golf Course are eligible for a multimillion-dollar capital improvement fund created to benefit the Arroyo Seco.

Established in a 1986 agreement with Brookside operator American Golf, the fund was supposed to benefit capital projects in the arroyo, a mostly dry river canyon stretching from the foothills to the Los Angeles River channel.

Golf course operators agreed to donate 10 percent of greens fees to the Arroyo Seco fund every year.

The fund has collected about $3.4 million over the past 15 years, and more than $1.8 million has already been spent.

But most of it was spent on the stadium and golf course and not on the natural areas, as some parks advocates claim was intended.

The council on Monday, however, reaffirmed the expenditures and decided the Rose Bowl and golf course were also eligible for the remaining funds and future revenues.

Councilwoman Joyce Streator pointed out that not only does the golf course generate the revenue, it and the Rose Bowl have brought "a lot of money" to Pasadena.

"You cannot operate viable businesses unless you put some of the money back in," Streator said.

The fund has a balance of about $1.5 million, and it continues to draw income of about $290,000 a year.

Parks advocates claim the arroyo has been neglected for years and doesn't have the ample revenue sources the Rose Bowl and golf course have.

"The Arroyo Seco has suffered a long period of neglect," said Pat Shanks of the West Pasadena Residents Association.

The central arroyo has many needs, including playground and bathroom improvements, wall repairs and field renovations that could use the 10 percent Arroyo Seco fund, said Michael Hurley of the Recreation and Parks Commission.

The Rose Bowl and golf course already receive 25 percent of greens fees exclusively, and they receive 35 percent of the rest of the golf course's operations, Hurley said.

Plus, there's a $1-per-round fee that goes specifically toward capital improvements on the golf course. In addition, Hurley cited the multimillion-dollar annual event revenues from the Rose Bowl.

"We'd just like to see that the CIP needs of the arroyo are being met," he said.

But Rose Bowl officials argued the stadium may need the 10 percent money to help it make repairs and pay off debt. General Manager Darryl Dunn pointed out that Major League Soccer's Galaxy team is expected to leave the Rose Bowl in two years and the facility has $45 million in bond debt.

"Unfortunately, our expenses will increase and our revenue is expected to decrease," Dunn said.

The council's decision capped off a months-long debate over what the fund was intended for.

Of the $1.8 million of the fund that has already been spent, about $900,000 went to projects in the Arroyo Seco, most relating to the golf course and stadium.

The more than $900,000 remaining was used to pay debt service on Certificates of Participation, a form of municipal financing.

Issued in 1992, the COPs were intended to benefit projects in the arroyo, and generated $2.7 million. Most of that money has been spent on stadium renovations.

In addition to the remaining $1.5 million in the 10 percent fund, about $830,000 remains in COP proceeds and interest.

-- Elizabeth Lee can be reached at (626) 578-6300, Ext. 4461, or by e-mail at elizabeth.lee@sgvn.com.