MCA Warned Not to Seek Quake Funds for Subway

Entertainment giant MCA Inc. and local transit officials, who are trying to win federal funds to defray the costs of relocating a subway station planned to serve the Universal Studios theme park, were warned Thursday not to seek money intended for earthquake relief.

Acting at the behest of Supervisor Michael Antonovich, a committee of the Metropolitan Transportation Authority instructed the agency’s lobbyists to cease seeking any funds for the station relocation that would otherwise go toward paying for the disaster.

“Raiding the last resources available to many desperate victims is not wise or ethical public policy,” Antonovich said in an interview.

Speculation regarding use of the overall $8.6-billion earthquake relief package that is now before Congress first surfaced Wednesday. At a meeting of the MTA’s Executive Management Committee, Los Angeles Mayor Richard Riordan and other officials indicated that part of the $100 million to be spent at President Clinton’s discretion might be used at Universal City.

“On the President’s discretionary money on the emergency funds--I’ve heard that $42 million has been set aside for the Universal Station,” Riordan told the agency’s chief federal government lobbyist. “Have you heard anything on that?”

The lobbyist, Arthur Sohikian, answered: “At this point, it is still at the discretion of the President, how he spends that money. . . . But yes, that, that has been discussed, Mr. Mayor.”

Los Angeles City Councilman Richard Alatorre, the chairman of the MTA and a co-chairman of Clinton’s 1992 campaign in California, said at the meeting on Wednesday that the Administration supported spending part of the discretionary earthquake relief funds for the station relocation.

“I think it’s safe to say that the President is very sympathetic,” Alatorre said. “. . . Within that $100 million, I think it’s safe to say the President has every intention of providing, if needed, some monies to change the station.”

Alatorre could not be reached for comment late Thursday.

A representative of MCA said Thursday that the company, owned by Japan-based Matsushita Corp., is seeking federal funds to offset the station relocation costs, but is not pursuing any revenue targeted for disaster relief.

“We are not looking for earthquake funds in any way, shape or form,” said Christine Hanson, a lobbyist for MCA.

In Washington, an aide to Clinton also said that no deal has been struck to spend any of the President’s $100 million of discretionary funds for the station relocation.

“This money can only be used for earthquake repairs,” said Tom Epstein, special assistant to the President for political affairs. “It can not be used for the (subway) project you describe. Anybody who has an understanding to the contrary is mistaken.”

Sohikian, the MTA lobbyist, noted in an interview that the MTA board directed his staff last month to work jointly with MCA to seek any available federal funds to pay for the costs of relocating the station and the twin tunnels that are to serve it.

“I think that the President will use those (discretionary) funds for what he and the Administration sees fit. Hopefully, part of that will be for some transportation, for what people in the city of Los Angeles need to get home at night.”

Times staff writer Alan C. Miller contributed to this story from Washington.

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