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Morning Headlines

An overview of today’s top L.A. business stories

Board OKs First phase of LAX Modernization
Despite objections from the city of El Segundo, LAX directors voted Monday to move ahead with the first part of the airport's $11 billion-plus modernization before obtaining federal approval for the plan or completing an environmental review of the initial project, the Daily Breeze reported. The Board of Airport Commissioners voted to seek companies interested in undertaking the $255 million project, which will involve moving a runway 55 feet closer to El Segundo. The board said the goal is to cut the time it will take to get the project started. El Segundo's attorneys claim the move is illegal.

KNBC Staffers Fired Over Affair
The L.A. Observed blog reported that Ron Fineman, in his “On the Record” Web site, is following up on his scoop from last week that KNBC reporter Kyung Lah and "Today in L.A." producer Jeff Soto got fired for having an affair – and 11 p.m. news producer Jim Bunner was axed for not telling on them. Fineman picks up on the shocked reactions from the Channel 4 newsroom and links KNBC's sensitivity on the issue to it being sued by ex-weatherman Christopher Nance, who was fired ostensibly because of his relationship with an intern. Nance alleges he was fired for being black and for practicing his religion.

Illegal Entry to U.S. Soars
The U.S. population of undocumented immigrants soared to nearly 11 million, a 30 percent increase since 2000, but the percentage taking up residence in California has declined sharply, according to a report released Monday. The shift away from California has been dramatic, according to an analysis of U.S. government figures by the Pew Hispanic Center. Still, California remains the state with the most illegal immigrants (25 percent), followed by Texas (14 percent), the Daily News of Los Angeles reported. The prospect of better job opportunities in the U.S. than in their native countries remains a powerful lure.

Few California Lawmakers Cast Schiavo Vote
Most California lawmakers were absent for an emergency vote Monday that allowed Terri Schiavo's right-to-die case to move into federal court, the Daily News of Los Angeles reported. All but eight of California's 53 House members avoided taking a stand on whether to prolong the life of the severely brain-damaged Florida woman, and what role Congress should play in right-to-die cases. Some said they were unable to get flights back to the East Coast in time, while others were away from Washington on business. For those who did vote, the results reportedly were mixed.

Mayor, Old Rival Confer at Deli
Battling to overtake City Councilman Antonio Villaraigosa in the May 17 mayoral runoff, Mayor James K. Hahn on Monday pressed his campaign to woo former rivals, dining with Bob Hertzberg at a Studio City deli, the Los Angeles Times reported. Hertzberg said Hahn requested the meeting. Hertzberg, a Sherman Oaks attorney, said he planned to meet with Villaraigosa soon. Besides Hertzberg, Hahn and Villaraigosa have been courting Councilman Bernard C. Parks and state Sen. Richard Alarcon, who also failed to make the runoff.

VF to Buy Reef as Surf Consolidation Swells
Catching the latest wave of consolidation in Southern California's surf wear industry, apparel giant VF Corp. said Monday that it planned to buy San Diego sandal maker Reef Holdings Corp., the Los Angeles Times reported. Athletic shoe behemoth Nike Inc. made the first strike three years ago when it swooped in to buy Hurley International. Since then, Miami-based Perry Ellis International Inc. has snapped up Redsand Apparel, New York-based VF bought Vans Inc. and Warnaco Group Inc., also in New York, acquired Ocean Pacific Apparel Corp.

Arrow Bows to a Radical New Radio Format
Los Angeles radio listeners don't know Jack unless they've recently tuned in to the now-defunct Arrow 93.1 (KCBS-FM), the Daily News of Los Angeles said. Infinity Broadcasting flipped the L.A. classic rocker to "Jack-FM" late last week, and now offers a modified version of its 11-year-old predecessor. Along with acquiring a new name, the station said goodbye to its disc jockeys and put the needle to a broad swath of music. The format was created by "Cadillac Jack" Garrett, a veteran radio personality. The arrival of Jack and demise of Arrow mark a transformation in terrestrial radio as satellite counterparts pose competition and beckon a new era for the medium.

Houlihan Hires Bankers From Piper Jaffray
Houlihan Lokey Howard & Zukin, a closely held Los Angeles-based investment bank, said it had hired six bankers from Piper Jaffray Cos. to help it win business from technology firms, Bloomberg News reported. One of the six, Jason Hutchinson, will be head of technology mergers and acquisitions. Houlihan Lokey was founded in 1970 and focuses on deals involving companies with market values of as much as $500 million.

StreamCast, Music Firms Settle Suit
As they gear up to battle each other before the Supreme Court, the major record labels and file-sharing company StreamCast Networks Inc. have settled a separate copyright infringement lawsuit over a radio service that StreamCast never launched. The lawsuit accused Woodland Hills-based StreamCast of putting unauthorized copies of thousands of songs on computer servers in 1999 and 2000, the Los Angeles Times reported. Terms of the settlement were not disclosed.

Roger Rabbit Animated in Court
Attorneys for Roger Rabbit creator Gary Wolf told a jury Monday that the Walt Disney Co. owes him $7 million for unpaid royalties, Variety reported. Disney lawyers disputed the claim and said Wolf actually owes Disney $500,000 to $1 million because of an accounting error discovered while preparing the lawsuit. Wolf says that his 5 percent royalty on merchandise should extend to promotional tie-ins where Disney and a third-party exchanged services in a mutually beneficial way that didn’t require cash payments.


  April 5 - 11, 2010
LA Business News
LOBBY EFFORT
InterContinental’s new boss has checked in with a plan to get more people to check out the hotel.
LegalZoom Poised to Zip Out of Hollywood Digs
Reform of L.A. business tax rates didn’t stop an online legal document company from pulling out of the city.
101 Freeway Park Proposal Ramping Up
A plan for a park atop the Hollywood Freeway is gaining ground.
Another Carmaker Steers Toward L.A.
Electric carmaker Coda hopes to park its final assembly plant in Los Angeles County.
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