DOWNTOWN : Council Panel OKs Plan to Sell, Lease Central Library

A plan to sell part of the historic Central Library in Downtown Los Angeles to a subsidiary of tobacco giant Philip Morris Cos. won approval from a key City Council panel Thursday.

A 3-0 vote of the Finance and Budget Committee sent the $71-million deal to two other council panels prior to next Tuesday’s vote before the full council.

The plan calls for the city to sell the library’s pyramid-shaped Goodhue building to the tobacco unit. The city would lease the library back for $5 million a year. Philip Morris would receive tax credits but would get no voice in operation of the library. The plan provides for the city to buy back the building after 20 years.

Committee Chairman Zev Yaroslavsky said the sale will provide the financially strapped city with $47 million, of which $14 million is expected to be used to help close a deficit in this year’s budget.

“To take the political risks for $100,000 a year (in savings) . . . I’m not sure that it’s worth it,” Yaroslavsky said. “You’re doing a very unusual deal which takes a lot of explaining to a lot of people. . . . But if we can get $47 million into the general fund, it makes the risk worth it.”

The committee recommended that $10 million from the sale be used to fund construction of low-cost housing. That would help make up for the diversion of redevelopment funds from housing programs to the library lease.