May 18 (Bloomberg) -- Los Angeles voters elected Antonio Villaraigosa mayor, giving the second-biggest U.S. city its first Hispanic mayor since 1872 and ousting incumbent James Hahn.

Villaraigosa, a Democrat city councilman, had 59 percent of the votes compared with Hahn's 41 percent, according to the Los Angeles City Clerk's Web site. Touring the city today, the mayor- elect said voters chose him over Hahn because they want a ``fresh start'' after four years of an administration dogged by fundraising probes.

``The results of this election say it more eloquently than I ever could,'' Villaraigosa, 52, told supporters last night at a campaign party at the Los Angeles Center Studios downtown. ``We are all Angelenos tonight.''

Villaraigosa's win puts him in position to execute an agenda that includes attracting more small businesses to Los Angeles by streamlining permit processes and offering tax breaks to companies that move to the city. Hahn's defeat is the first for an incumbent seeking re-election since 1973.

``Antonio has to balance what's doable as mayor and at the same time raise people's hopes,'' said Peter Dreier, a professor of politics at Occidental College in Los Angeles. If Villaraigosa does a good job, it could be a platform for running for higher office, Dreier said.

Villaraigosa, in a press conference this morning at the Los Angeles Urban League Automotive Training Center in the Baldwin Hills area, said ``rather than focus on being a national leader, I'm going to focus on my job.''

A call to Hahn's campaign office wasn't returned.

Campaign

Villaraigosa last night pledged to ``wake up every morning thinking about how to bring high-quality jobs to Los Angeles'' and fix the city's transportation system. Los Angeles has the most congested freeways in the nation, according to the Texas Transportation Institute.

The mayor-elect, a former California Assembly speaker who is married with four children, led in voter polls since the March primary when he received 33 percent of the vote compared with Hahn's 24 percent. Hahn beat Villaraigosa in a runoff in 2001 after trailing in that primary.

With 99 percent of the city's precincts reporting poll results, the city clerk said the election drew 31 percent of Los Angeles's 1.47 million registered voters.

Villaraigosa today is visiting Taft Senior High School in Woodland Hills, where six students were taken into custody this morning after fights broke out. He vowed to boost police staffing at schools after a meeting with Police Chief William Bratton.

Donations

Both candidates contended with claims of corruption during the campaign and Villaraigosa this month said he would return $47,000 in donations from the employees of two Florida companies and their family members, prompting the Los Angeles County District Attorney to open an inquiry.

Hahn's Democratic administration has been investigated by the county district attorney and the U.S. Attorney's Office about whether awards of contracts were influenced by campaign cash. No one in the administration has been charged with a crime.

The mayor-elect, speaking at the auto school in Baldwin Hills, today said he'll bar lobbyists from city commissions, eliminate no-bid city contracts and institute an ethics pledge for municipal workers.

Supporters

Villaraigosa, a Los Angeles native who dropped out of high school before graduating from the University of California at Los Angeles, collected more campaign cash during the race. The challenger raised about $3.7 million compared with Hahn's $1.44 million as of May 11, according to the City Ethics Commission.

Among Villaraigosa's donors were Walt Disney Co. Chief Executive Michael Eisner, media billionaire Haim Saban and Frank Biondi, senior managing director of WaterView Advisors and former Viacom Inc. chief executive officer. The donors, who gave the maximum of $1,000, declined to comment on the race.

``This is more about the money,'' City Councilman Eric Garcetti said at a party for Hahn supporters at Club Element in Hollywood before Villaraigosa claimed victory. ``Mayor Hahn hasn't had the money and money is what shows up on the television and in people's mailboxes.''

Villaraigosa won endorsements from former Los Angeles mayor Richard Riordan, Lakers basketball star turned businessman Earvin ``Magic'' Johnson and U.S. Senator John Kerry. Villaraigosa served as national campaign co-chair in Kerry's unsuccessful presidential bid last year.

Labor groups including the Amalgamated Transit Union and International Brotherhood of Electrical Workers locals supported the challenger.

Budget

Hahn had the backing of two of the city's largest business lobbying groups, the Los Angeles Area Chamber of Commerce and the Central City Association.

California Governor Arnold Schwarzenegger declined to endorse either candidate.

During Hahn's administration, the Los Angeles economy improved. The city, with 3.7 million people, gained 75,000 jobs between December 2000 and January 2004, while the San Francisco area lost 100,000, according to the U.S. Labor Department. New York is the biggest U.S. city with 8 million people.

The Los Angeles City Council this week passed Hahn's $5.95 billion budget, increased spending by 11 percent for the fiscal year beginning in June.

Finances

Villaraigosa, who graduated from the People's College of Law in Los Angeles, campaigned on building more affordable housing in the city.

The vote probably won't affect the balance sheet of the city, Gabriel Petek, a San Francisco-based analyst who follows the city for Standard & Poor's, said before the election. Los Angeles's debt is rated ``AA'' by Standard & Poor's, the third- highest rank and three levels higher than New York.

Los Angeles had $11.7 billion of bonds and long-term notes outstanding at the end of June, according to its most recent annual financial report. The city for two decades has had a policy of selling bonds through competitive bidding.

To contact the reporter on this story: Joyzelle Davis in Los Angeles at joydavis@bloomberg.net; Nadja Brandt in Los Angeles at rogoszynski@bloomberg.net.

Last Updated: May 18, 2005 15:21 EDT