The Los Angeles City Council on Friday, July 29th, held a public hearing on Anschutz Entertainment Group's (AEG's) proposal to build a football stadium where the West Hall of the Los Angeles Convention Center currently stands. Councilmember LaBonge serves on the AD-HOC Committee formed to go through the stadium proposal with a fine-tooth comb. The Stadium Committee held two evening public meetings this weeek. One at LA City Hall, the other in Van Nuys. The Committee also released the Draft Memorandum of Understanding on July 25 during a news conference at City Hall. The Draft MOU demands that the Stadium and Convention Center hall be financed with NO PUBLIC FUNDS, no COST TO THE TAXPAYERS. The terms of the draft MOU are as follows:
No public funds would be used to finance the stadium and event center. AEG would pay a fair market value to leas the City-owned site -- adjusted annually -- for 55 years; and the project would not proceed until an NFL team has signed a contract to use the Stadiu/Event Center and that financing is in place for the Stadium/Event Center.
The new Convention Center Hall would be comparable in size to the LACC West Hall that would be demolished to make way for the stadium, with improved functionality. Approximately $275-million dollars in tax-exempt bonds would provide funding for the new hall. 73% of the bond payments would be covered by AEG, and 27% of net new tax revenues generated by the stadium would cover the remainder. $195-million in Series-A bonds would be backed by the Stadium/Event Center lease payment, new possessory interest tax revenues and limited parking tax revenues. A Mello-Roos Tax District would cover $80-million dollars in Series-B bonds.