This week the L.A, City Council will take up the issue of a new football stadium for downtown L-A. The project also involves the renovation of the L-A Convention Center. Who is going to pay? How much is going to cost? What are benefits for the city? Tim Leiweke, AEG Vice President, give us the background on his “Farmers Field”.
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.
