Blog / The Business Perspective
Framework for Downtown Stadium Deserves Support
August 8, 2011
by Gary Toebben
For months the City of Los Angeles has been watching closely, with both fanfare and skepticism, as to whether or not an agreement for a downtown stadium and events center near the Staples Center could be worked out to the benefit of the City. With the release and public review of the Memorandum of Understanding (MOU) between the City of Los Angeles and Anschutz Entertainment Group (AEG), we now have an outline for a deal that reflects tough negotiations that protect Los Angeles taxpayers and offer the potential of a major economic stimulus for the City.The City staff and professional consultants who were hired to assist the City with its counterproposal did an outstanding job for the taxpayers of Los Angeles. The financial interests of the City are protected and enhanced in the new MOU. The financial upside to the City’s general fund is significant, and the financial downside to the City’s general fund and the ongoing operation of the convention center during construction has been eliminated.
In football language, the MOU that will be voted on by the City Council today, Tuesday, Aug. 9 is a first down, not a touchdown. It is not a guarantee that the City will get a stadium or a new West Hall for the Convention Center. Rather it is a framework that outlines the public-private development model for the proposed project, while other work like the Environmental Impact Statement is being completed.
If this MOU eventually results in a new stadium and events center, the City of Los Angeles gets much more than a football team. The Convention Center’s aging West Hall is due for a major renovation that the City cannot and would not complete on its own. Expanding and improving the Convention Center as part of the construction of a new stadium would be a catalyst for additional hotels to support an increase in convention bookings. Together, this snowball of activity would create a tremendous boost in jobs and tax revenue to the City.
The MOU, as negotiated by City staff and consultants on behalf of the taxpayers of Los Angeles, deserves the support of the full City Council. It is a roadmap to a public-private partnership that has the potential to achieve economic and community benefits that neither party could accomplish on its own.
And that's The Business Perspective.
Comments
Majestic Hospitality Group Inc. is in favor of the proposed football stadium. We completely disagree with the comment posted by Jean Cassetta on the possibility of long term job creation. The Sport and Event Entertainment sector is one of the fastest growing subsections of the hospitality industry. This project has the opportunity to create thousands of jobs for the damaged Los Angeles economy. People who acquire the skills of facility operations and management will have job growth opportunities at thousands of venues across the city, state, and country. It is a necessary step for continuation of the urban renewal program for downtown. As a member of the hospitality industry, we are looking forward to being involved with new projects that are the net result of constructing the new stadium.
Posted by: Chris Henry @ 10:04:00 am
I am against a football stadium in downtown Los Angeles. Why are you trying to crowd in a stadium and the parking in an already congested area. Your idea is insanity. Why don't you spend money to help people. And don't tell me it will create jobs. These are not good jobs with any future.
Posted by: Jean Cassetta @ 8:16:00 am
Leave a Comment
Comments submitted are subject to review by the Los Angeles Area Chamber of Commerce prior to posting. The Chamber reserves the right to monitor and withhold comments that include personal, offensive, potentially libelous or copyright protected language, materials or links. Only comments relevant to the topic will be posted. Comments posted must have a valid email address. View our full terms & conditions.