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WEDNESDAY, JANUARY 22, 2003
Volume 2, Issue 60
Santa Monica Daily Press A newspaper with issues
Poll: Marginal support for school tax proposal
Monkey business
BY ANDY FIXMER Daily Press Staff Writer
Carolyn Sackariason/Daily Press
‘Jo Jo’ the monkey earns his keep this past weekend on the Third Street Promenade by licking a lollipop and collecting money from his admirers.
MGM shares slump as Kerkorian plans to sell BY GARY GENTILE AP Business Writer
LOS ANGELES — Shares of Santa Monica-based film studio MetroGoldwyn-Mayer plunged more than 17 percent Tuesday after its principal owner, billionaire Kirk Kerkorian, said he intends to sell 28.75 million of his MGM shares to generate a tax loss. Kerkorian’s Tracinda Corp., the holding company that owns both MGM and casino and hotel operator MGM Mirage, filed the registration Tuesday with the Securities and Exchange Commission to sell 25 million shares to the public. The registration also includes a provision for the underwriter, Bear, Stearns & Co. Inc., to buy 3.75 million shares. Kerkorian’s stake in MGM will drop from 77.3 percent to 67.3 percent after the sale. Tracinda said the sale is intended to generate an investment loss before the end of the company’s fiscal year, Jan. 31. The loss will generate enough of a tax deduction to result in a tax refund for Tracinda, the company said. The sale is an about-face for Kerkorian, who just last July said he
would repurchase up to 10 million shares because they were undervalued. Kerkorian has also been trying to sell the company for more than a year.
“What I think is hurting the stock is Mr. Kerkorian’s choice to sell at this time coupled with 2003 guidance which is a little confusing.” — DAVID MILLER Sander Morris Harris analyst
After the announcement Tuesday, MGM shares dropped $2.47, or 17.63 percent, to $11.54 in early afternoon trading on the New York Stock Exchange. A drop in the share price was expected because of the dilutive effect of adding another 28 million shares to the public float. See MGM, page 8
School officials will likely face the same challenges as they did last fall when they attempt to convince voters to increase their taxes this June. That’s the feeling school supporters got from a recent poll taken of more than 400 residents last week. The poll asked registered voters in Malibu and Santa Monica which of three proposals they would approve at a special election on June 3. Each proposal would generate about $6.5 million for the school district, which is facing a loss of nearly $19 million in state funding during the current year and next year. In November, the Santa MonicaMalibu School District suffered a defeat when it asked voters to approve a $300 parcel tax annually for 12 years. “I think some people thought the school district is crying wolf again, but I think those people understand now that there are going to be real cuts,” said Neil Carrey, chair of the committee investigating a possible parcel tax. “This is not just talk to scare the city or the voters,” he said. “If the parcel tax
doesn’t pass, there are going to be great, devastating cuts.”
“It was interesting to see that the things people thought would be a major impact actually wouldn’t be.” — NEIL CARREY Parcel tax committee chair
Nearly 60 percent expressed support for a flat $225 parcel tax and another proposal that would institute a $60 flat amount with a 7 cent tax for every square foot of development on the property. Under the latter proposal, a renter or an owner of a 1,500-square-foot condo or apartment would pay $165 annually. Meanwhile, the owner of a 10,000-squarefoot retail store would pay $765 annually. Barely 50 percent said they would approve a third proposal that calls for a See PROPOSAL, page 8
Man must pay for tree falling on neighbor’s car BY ANDY FIXMER Daily Press Staff Writer
When a tree in your yard falls over, you could end up paying for whatever damage it causes, a recent court ruling suggests. A judge ruled last week that Santa Monica resident Harry Guirguis must pay more than $1,500 to his neighbor, James A. Tullius, after a tree fell on his car. Tullius sued Guirguis in Santa Monica Small Claims Court after he refused to pay for the damage his tree allegedly inflicted on Tullius’ 1989 BMW. While the tree didn’t break any of the car’s windows, Tullius said he paid $2,400 to have the vehicle repainted. But Guirguis argued that $2,400 to fix a 1989 BMW seemed excessive. Tullius and Guirguis both live in a north of Montana Avenue neighborhood along the 400 block of Lincoln Boulevard.
Judge Pro Tem Alan Freedman ruled Guirguis was liable for the damage, but Tullius shouldn’t get reimbursed for the full amount because he didn’t choose the least expensive repair estimate. Freedman ruled that Guirguis only has to pay $1,582 — the amount of the lowest estimate. “You chose the middle estimate and I don’t see why,” Freedman said. “This other guy had the lowest bid for the same amount of work.” Guirguis said he contested the charge on principle because no one witnessed the tree falling on Tullius’ car. Indeed, the fallen tree was found lying next to the car, not on top of it. Tullius admitted his homeowner’s insurance would cover the claim, but he felt the damage was so small it wasn’t worth filing. “Based on the limited damage and the $1,000 deductible (on the policy), I didn’t See TREE, page 8