Key issues remain in downtown stadium effort

As Los Angeles council members prepare to move on to the next stage of talks with AEG over a proposed downtown football stadium, city officials said in a report released Sunday that key issues remain to be negotiated.

Among those are ensuring that there is a letter of credit to cover any city costs stemming from razing part of the old complex and the building of a new Convention Center hall. Also of concern is the financing of the new stadium, the timing of the construction and coordination of different events at the new facility and the Convention Center.

The information was contained in a 13-page letter prepared by City Administrative Officer Miguel Santana and Chief Legislative Analyst Gerry Miller in response to the more than 40 questions raised by Councilman Bill Rosendahl over the proposed project.

Rosendahl said he was still studying the report and would be using it as part of his review of the project. Rosendahl posted the report on his Twitter account.

"What I am pleased with is to get this out now so people can study it to see what the city is looking at," Rosendahl said, adding he will be sending it to neighborhood council leaders in his community for review.

Rosendahl is hosting a town hall meeting on June 28 in Mar Vista with AEG President Tim Leiweke to outline the plan.

"What I have asked is for the neighborhood councils to send their business leaders to the meeting so they can explore all aspects of

the proposal," Rosendahl said. "If they say it's a good deal, it will certainly influence my vote."

The City Council's Ad Hoc Committee on the project, of which Rosendahl is a member, is scheduled to meet on June 30 to review the status of the negotiations Miller and Santana are having with AEG.

Leiweke has said he needs a decision from the city by July 31 if AEG is move ahead with the plan.

The proposal from AEG is to build a 74,000-seat facility as part of its L.A. Live campus to accommodate a professional football team, as well as provide an additional 1 million square feet of convention space for the city.

The relocation of the West Hall is a key part of the proposal, which would require the city to issue up to $350 million in bonds. AEG wants the city to issue the bonds because local government will receive a lower interest rate.

AEG has said it would cover the city's costs for the bond.

Miller and Santana said the city now pays $48 million a year to pay off the $485 million in debt on the Convention Center. The new bond issue would add $15 million a year to the debt cost, they estimated.

However, AEG has said it would have an admission fee on tickets to cover the cost and would make up any difference if that amount did not materialize.

Miller and Santana said the proposal comes at a time when city officials need to decide on needed improvements to the Convention Center.

"In order to be competitive, the city must face the reality that the (Convention Center) design is inefficient and does not compete favorably to better designed competitors," they wrote.

"Updating and refurbishment of existing facilities is required and additional exhibit space is needed in order to compete."

Source: http://www.dailynews.com/news/ci_18312604?source=rss

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