After three months of closed door meetings on a $1.2 billion financing plan for a proposed NFL stadium, it's time to let the sun shine in.
Anyone with an opinion on how the city plans to front the cash for the stadium has a chance to speak up at a public hearing scheduled for Wednesday evening.
Full Text: Draft Memorandum of Understanding
The public can provide input on the $1.2 billion financing plan for Anschutz Entertainment Group to build an NFL football stadium, a new convention hall and parking structures. The structures would be on city-owned land downtown.
The meeting is scheduled for 5:30 p.m. at LA City Hall. Another meeting is scheduled for Thursday in Van Nuys.
Wednesday's city committee meeting marks the first public heaing regarding a proposed draft memorandum of understanding (MOU), which was released Monday.
The MOU, drafted after three months of closed-door meetings, anticipates an NFL team in LA by 2016.
A few other details in the proposal:
- The city would issue $195 million in bonds that would be backed by the city's general fund, which pays for basic city services.
- City leaders said the plan would require no public money for the stadium.
- The debt would be repaid by rent AEG would pay to use the city's land, a property tax and one-time taxes on construction of the new project.
- AEG would pay for any shortfalls in the bond payments caused by less-than-anticipated revenues from those taxes and fees.
- The remaining cost of the New Hall at the Convention Center would be funded by an $80 million bond backed by AEG's Staples Center and L.A. Live.
- If the developer failed to make those bond payments, the city could foreclose on those properties.
- An NFL team must sign at least a 30-year commitment to play in the stadium.
That's the framework for a negotiations expected to occur during the next year, if the mayor and council okay the proposal. AEG President Tim Leiweke said he's confident that will happen.