Story courtesy of The City Maven.
By Alice M. Walton
The city of Los Angeles' negotiating team that is working with the Anschutz Entertainment Group to reach a deal on building a professional football stadium and Convention Center hall in downtown released the first draft of its work today, which outlines bond financing and other points of contention.
The non-binding memorandum of understanding will be discussed by the Ad Hoc Committee on the Proposed Downtown Stadium and Events Center on Wednesday and Thursday. The full Los Angeles City Council will devote its Friday meeting to the Farmers Field deal, although it is unlikely that a vote will take place that day.
Among the key points of the MOU:
- AEG would pay a fair market rate to lease the city's land that would serve as the site of Farmers Field and two parking garages. The leases would be for 55 years;
- The new convention space would require 195 million in bond financing, backed by the stadium's lease payment, new possessory interest tax and parking tax revenues;
- AEG would pay another 80 million in Mello-Roos District taxes, which would be an assessment on Staples Center and L.A. Live.
- "There is no public money in the stadium -- nothing," the city's Chief Legislative Analyst Gerry Miller said at a City Hall news conference.
Over a 30-year period, the city of Los Angeles would receive $210 million in net new tax revenues, according to the CLA's report.
Farmers Field, which AEG officials hope to have ready in time for the 2016 season, would have 72,000 seats, with 200 luxury suites and 15,000 club seats. It is expected to host at least 27 events a year. The project would ultimately create 6,320 permanent jobs in Los Angeles, according to the report.
It is still unknown whether the NFL would charge a team a relocation fee for moving to Los Angeles. "The fee could exceed $500 million. If such a fee is assessed, the team could be forced to operate at a loss for a number of years," according to the report.
In a statement, AEG president Tim Leiweke said, "We are confident that following their review of the MOU, the mayor, City Council and other officials will endorse this framework for a project that will boost the city's convention, hospitality and tourism sector, stimulate economic activity in the region and generate sorely needed jobs."
The ad hoc committee will meet on Wednesday at 5:30 p.m. in room 350 of City Hall and again on Thursday at 5:30 p.m. in Van Nuys City Hall. A final contract between the city and AEG cannot be agreed to until the environmental impact report is completed next spring.