Even in Beverly Hills, eyebrows rose as word spread about the $500,000 "finder's fee" that City Councilman Tom Levyn was paid in September for introducing Merv Griffin to the entrepreneur who later bought the celebrity mogul's Beverly Hilton Hotel.
Levyn's fee, which the state Fair Political Practices Commission recently concluded was not a prohibited political gift, has nonetheless become a symbol of a city government that critics contend has lost its ethical way amid a surge of high-end development.
Beverly Hills has forged past a post-Sept. 11 rough patch in high style. Purveyors of pricey threads and baubles have poured millions of dollars into renovating the city's business triangle, now looking its spiffiest in years after acquiring glossy storefronts by A-list architects including Rem Koolhaas, wider sidewalks, designer streetlights and even new palm trees.
With the grand plans comes money, and that, some say, is the problem.
"The ethics of the city at the moment are very peculiar," said Betty Harris, a veteran activist who represents Beverly Hills on the Metropolitan Water District board. "I think the council has lost touch with the people of their city."
At the center of the storm is Beverly Hills' decision to act as co-developer of an eight-story luxury hotel and condominium complex, the Montage, part of which would be on what is now a city-owned parking lot.
Opposition leaders say the City Council has no business being involved in this public-private venture, which they fear could trigger more high-rise development and destroy Beverly Hills' scale and charm.
In recent months, the council's actions on the project have earned it scoldings from the Los Angeles County district attorney's office and a Los Angeles Superior Court judge.
Then there is the issue of Levyn. In anticipation of receiving the $500,000 finder's fee for the Beverly Hilton sale, Levyn recused himself from all votes on the Montage. The reason: The proposed five-star resort might have an effect on the four-star Hilton's fortunes.
Levyn, a real estate attorney, said he had done nothing illegal or unethical. City Atty. Laurence S. Wiener confirms that view, saying it was necessary for Levyn to refrain from voting on the Montage because of his tie to the Hilton deal.
But many residents complain that it leaves them with one fewer representative as the city faces its biggest development battle in years.
