Prop. 98 Backers Stand to Rake in the DoughTommi Avicolli-Meccabyline‚ Mar. 03‚ 2008There was never any doubt in my mind that California’s Prop 98 would make huge chunks of money for some people. The initiative purports to be about eminent domain reform, but it also eliminates rent control throughout the state. Proponents can wax poetic about protecting small homeowners against government’s seizure of their property, but at the end of the day there’s big bucks to be made by raising rents and tossing people out of their homes. Consider Sam Zell, the new chair of the Los Angeles Times’ corporate parent company. According to Capitol Weekly (February 28), his firm will rake in about $15 million, if Prop 98 is approved by voters in the June election. In addition to his position at the Times, Zell is chair of Equity Lifestyle Properties, an outfit in Chicago that owns over 100,000 rental units in the U.S. and Canada. Here in California, Equity has 28 properties, including rent-controlled mobile home parks. |