Opponents of Prop KK Denounce Million Dollar Campaign

By Teresa Rochester

With two and a half weeks to go before Election Day opponents of the nation's first business-backed living wage measure came out swinging at a Tuesday morning rally, calling the measure phony and deceitful.

Gathered at the foot of Pico Boulevard with their backs to the luxury hotels -- which have pumped close to $1 million into Proposition KK's war chest - and facing television news cameras, opponents of the measure vowed to defeat the initiative.

The charter amendment -- which would cover businesses with city contracts and grants -- would require that voters approve any living wage measure, including a pioneering ordinance the council is studying which targets the city's hotels.

"I absolutely oppose KK. I want everyone in Santa Monica to know it's a no vote," said Assemblywoman Sheila Kuehl, a Santa Monica resident who is running for the state senate seat vacated by Tom Hayden. "They have expropriated the name living wage knowing that the voters are for the living wage."

"I'm here with a simple message: Santa Monica is not for sale," said Mayor Ken Genser, who was joined by Councilman Richard Bloom and former Mayor Dennis Zane. "We have never, ever seen so much money spent on a political campaign. It is essential no matter what we think of a living wage to defeat Prop. KK."

Luxury hotels and smaller businesses in the City's coastal zone launched Prop. KK in response to the proposed ordinance, which would make Santa Monica the nation's first city to require businesses within the lucrative zone with no municipal contracts or subsidies to pay their workers a living wage, in this case $10.69 an hour. If passed Prop. KK would erase any ordinance passed by the council.

"They never, never, never initiated a living wage and now they say they care about a living wage," Hotel Employees and Restaurant Employees Local 11 leader Maria Elena Durazo told the crowd of media and supporters. "They lied. They lied. They lied."

The council's proposed ordinance would cover nearly 2,500 workers, most of them in hotels. The hotels and other businesses in the Coastal Zone have said the ordinance would wreak financial havoc. Supporters, who contend the fear is unfounded, hoisted signs at Wednesday's rally showing the amount each hotel has contributed to the initiative campaign.

The Edward Thomas Co., which owns Shutters on the Beach Hotel and Casa Del Mar, had donated $368,828 by September 30. Loews Santa Monica Beach Hotel, which is currently engaged in a bitter union organizing campaign, contributed a total of $325,000. The owners of Le Merigot had contributed $74,997.

"They're trying to fool us. This is wrong and immoral to try and fool people this way," said Los Angeles Episcopal Bishop Frederick Borsch. "If they truly believe that they can't run those hotels at a profit with a living wage, I'd like to make them an offer. I'd like to buy the hotels. I could put together a syndicate."

While many restaurant owners in the Coastal Zone said they would likely fold if the City's ordinance is passed because of their high overhead, Fred Deni, owner of the restaurants Back on the Beach and Back on Broadway, said he is opposed to the business-backed measure.

"I'm constantly asked how I could be not in favor of Prop. KK," Deni said. "I'm personally opposed to the big luxury hotels exempting themselves from paying a living wage."

Opposition leaders vowed to keep up the fight. Former Mayor Denny Zane, who is co-chair of the powerful tenants rights group Santa Monicans for Renters' Rights, told the crowd that residents have a long history of fighting battles and winning.

"We in Santa Monica know how to fight for social justice in this city. We've done it before," he said. "We know how to defeat them…I want you to know not only will KK be defeated, it will be trounced at the polls Nov. 7, and when that happens they will learn a lesson that Santa Monica cannot be bought."