A billionaire's private sector coalition for LA fires recovery
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Illustration: Brendan Lynch/Axios
Billionaire real estate developer Rick Caruso, who lost the LA mayor's race in 2022 to Karen Bass, yesterday launched a new group aimed at expediting the city's rebuild.
Why it matters: America's attention has moved on from Los Angeles, but the staggering devastation from last month's wildfires remains.
- Tens of thousands of people homeless or displaced. Entire communities obliterated.
- Successfully rebuilding areas like Altadena, Malibu, and Pacific Palisades will require major help from the private sector, beyond basic philanthropy.
Driving the news: Billionaire real estate developer Rick Caruso, who lost the LA mayor's race in 2022 to Karen Bass, yesterday launched a new group aimed at expediting the city's rebuild.
- It's called Steadfast LA, and includes venture capitalists (Kobie Fuller of Upfront Ventures, Joe Lonsdale of 8VC), media execs (Amazon MGM's Mike Hopkins, Netflix's Ted Sarandos), bankers (JPMorgan's Olivier de Givenchy), and property pros (Jason Keller of Oaktree and CBRE's Lew Horne).
Zoom in: Caruso tells Axios that Steadfast LA wants to work in partnership with the city and state, providing ideas and expertise to overwhelmed public officials.
- "Our goal is to bend the curve," he explains. "If the city thinks a process is going to take two years, let's come back with a solution that cuts that time in half."
- "These are all complex problems. Just the infrastructure alone, in terms of upgrading water mains, undergrounding power lines, and designing communications systems. But when you break it down into small pieces, it feels more manageable."
- He's already spoken with both California Gov. Gavin Newsom, backchanneled with the White House, and estimates that the full rebuild could cost $250 billion.
Zoom out: There is certain to be pushback against private-sector involvement if it includes buying up large parcels of land — some conspiracy theorists even believe the fires were intentionally set for developer profit — but Caruso views all of that as secondary to getting people back into homes.
- His bigger concerns are around physical labor and supply chains, and suggests that Steadfast LA will work on solutions to both.
The bottom line: "I'd really like to get more thought leaders from different industries involved," Caruso says, when asked what he wants the private sector to know. "Including on the finance side, because this is going to take immense amounts of capital, and different colors of capital. When you see it with your own eyes, it's like rebuilding a war-torn country. No churches or schools or rec centers. It's a huge effort."
