Los Angeles Mayor Karen Bass and developer Rick Caruso appeared together Tuesday at the groundbreaking ceremony for the new Palisades Recreation Center, marking a notable shift in their previously tense relationship. The event took place amid Bass's reelection campaign, where she faces a challenge from City Councilmember Nithya Raman.

The new recreation center will replace the facility destroyed in the 2025 Palisades fire and will include sports fields, tennis courts, and a gym. The project is being funded entirely through philanthropic donations, with Caruso’s nonprofit, Steadfast LA, contributing more than $40 million toward the effort. Other organizations involved in the fundraising include Lakers coach JJ Redick’s nonprofit, LA Strong Sports.

Caruso, who lost his home in the Palisades fire and was a mayoral opponent in 2022, praised Bass’s leadership during the project announcement. He highlighted her ability to unite various city stakeholders and her role in creating a large-scale public-private partnership unprecedented in the city. “She set out to break new ground by forming this massive public-private partnership,” Caruso said, calling Bass a “great leader.”

However, when asked if he would endorse Bass’s reelection bid, Caruso did not commit. He described both Bass and Raman as “tough choices” and said, “I don’t think either option is great.” Bass declined to address whether she would welcome an endorsement from Caruso, emphasizing that the ceremony was not a political event. An aide halted the conversation before she could elaborate.

Bass defeated Caruso by nearly 10 percentage points in the 2022 mayoral race, during which Caruso spent over $100 million of his own money. Although Caruso initially indicated he might challenge Bass again this year, he later withdrew, citing disappointment and the importance of the election. His withdrawal paved the way for Raman’s late entry into the race.

Caruso has been publicly critical of Bass’s handling of the 2025 Palisades fire aftermath. He accused her of suppressing an after-action report investigating the disaster, a claim Bass’s office has not publicly addressed. Despite these tensions, Caruso’s tone at the groundbreaking was notably more conciliatory.

Analysts note that Caruso, a former Republican who registered as a Democrat in 2022, could influence the mayoral race by appealing to moderate and conservative voters who may have supported other candidates in the primary. At the same time, his backing might alienate more progressive segments of Bass’s base.

Caruso is scheduled to meet with Raman to discuss her campaign. He also publicly criticized the Democratic Socialists of America, a group endorsing Raman, tweeting that "DSA policies will not solve LA's problems," and warning that such approaches “will only make them worse.”

Tuesday’s event suggests a potential recalibration of alliances as Los Angeles approaches a closely watched mayoral election, with public-private partnerships and disaster recovery efforts at the forefront of the campaign discourse.