Rent Seeking 101: Schwarzenegger to sign environmental exemption bill to allow construction of LA Football Stadium

October 20th, 2009

Big shocker. When the Governor of  Ca-Lee-For-Nee-Yah wants to build a football stadium, he does not need to follow the environmental rules everyone else must follow.

From NBC Los Angeles:

Gov. Arnold Schwarzenegger said he’s going to sign an environmental exemption bill that will clear the way for construction of the LA Stadium.

State senators approved the bill, which would nullify a lawsuit over the project’s environmental impact report by citizens in neighboring Walnut. Schwarzenegger is expected to sign the bill in support of the stadium because its impact on the local economy and its ability to generate jobs.

There will be more than 6,700 new jobs created because of the stadium, causing an addition $21 million in new tax revenue and $762 million in new economic activity, according to an LA Stadium spokesperson.

Schwarzenegger hopes developer Majestic Realty Co., the driving company behind the project, doesn’t poach any California teams to play in the proposed venue. They have indicated their plan to approach seven teams in hopes of luring one to LA. The list includes the three California teams: San Diego Chargers, Oakland Raiders and the San Francisco 49ers.

This is typical.  A homeowner, who has an endangered snail darter on his property would never get such a generous exception, but for the construction of a football stadium, and jobs, the environment can always wait. I have no doubt that Majestic Realty Co. actively engaged the state legislature and sought rents from California. Among these rents, are the ability to construct without concern for the environment.