The deal will keep Capitol Records in Hollywood, but the firmwill have to spend more than $20 million in renovations to itslandmark building. The additional $4 million from the city will beused to aid the firm in renovating a nearby office tower, as wellas adding employees to its current workforce.

The council's approval was accompanied by a request for aninvestigation of the city's purchase of an adjacent parking lot,which was originally appraised for half the amount the city paidfor it. The Community Redevelopment Agency bought the lot for $1.45million in 1998, despite an appraisal that placed its value at$795,000.

Apparently, an agency administrator ordered a second appraisalthat justified the $1.45 million payment, but it was not completeduntil after the board had already voted to buy the parcel at thehigher sum.

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