(CNS) Posted Tuesday July 19, 2011 – 3:33pm
A citizens group headed by a former commercial real estate executive called today on city leaders to require money for neighborhood improvements as part of a proposed $1.3 billion downtown football stadium and convention center deal currently under negotiation.
The group calling itself LA Neighbors United took out a full-page ad in the Los Angeles Times today opposing the direction of the city's negotiations with Anschutz Entertainment Group.
"The odds are high that the proposed downtown stadium will produce zero lasting benefits for the people of Los Angeles. That's not a good deal," the ad reads.
AEG and the city are close to announcing the basic terms of a deal, which city officials claim will not cost taxpayers a dime and will result in the construction of a badly needed new convention center hall.
AEG has proposed building the convention center with city-issued bond money, which could be as much as $300 million.
The bond would be repaid by rent from the football stadium, ticket, parking and signage revenues, and future increases in revenue from the proposed new convention center.
The ad comes on the eve of the release of two economic impact reports commissioned by AEG and expected to detail anticipated new tax revenues from the stadium and convention center for the city and Los Angeles County.
The citizens group claims all of the new projected revenue would go toward debt service or back into operations at the new event center.
"That would be a misappropriation of our tax dollars and an unlawful gift to the facilities operator," said L.A. Neighbors founder Carey Brazerman, a former executive with Los Angeles real estate giant CB Richard Ellis.
Instead, Brazerman said, "Angelenos should receive a minimum 1 percent return on the stadium investment in the form of an annual revenue guarantee" that would amount to about $15 million annually.
The money, he said, should go directly into the city's General Fund and be used for basic neighborhood improvements, such as sidewalk repairs.
"I wouldn't put it into the negotiations at this point, but it's certainly something we could talk about," said Councilwoman Jan Perry, who chairs the ad hoc committee charged with vetting the stadium proposal.
Despite Brazerman's former involvement in Los Angeles real estate, he said he had "no dog in the fight."
"We applaud (AEG's) interest in further investing in downtown Los Angeles, and wish the company well in its negotiations with the National Football League," he said.
However, Brazerman said, "This is a prime location. We don't need a stadium to realize the highest and best use of the land, nor to maximize the site's revenue-generating potential. There are other ways we can do that."
A memorandum of understanding, or MOU, is expected by next week.
The City Council is scheduled to hold a special meeting devoted to the proposed downtown stadium negotiations on July 29.
Copyright © 2011 City News Service
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