The NFL has a new tentative agreement with its players and Los Angeles has a new tentative agreement with developer AEG. Today the Ad Hoc Committee on the Proposed Downtown Stadium and Events Center released a non-binding memorandum of understanding outlining the financials behind the AEG's proposed Farmers Field and accompanying relocation of the West Hall of the Convention Center. What's in the deal?
-- The new Convention Center would cost $275 million.
-- It would be funded in part with $195 million in city-issued bonds, which would be repaid with revenue from the new development. According to the LA Times, that would include "lease income paid by AEG, parking taxes, property taxes and a one-time construction tax on the project." Blogdowntown says the ground lease for the site will start at $6.5 million and the one-time tax will be $5 million.
-- $80 million in bonds would be covered by a new special tax district encompassing AEG's Staples Center and LA Live. The move is meant to remove some of the city's risk in the deal, since AEG will be responsible for the bonds, and as the LAT explains: "If AEG fails to pay the taxes necessary to cover those bonds payments, the city could foreclose on L.A. Live."
-- According to Chief Legislative Analyst Gerry Miller, the split would be: 27% paid for by new taxes, 73% by payments made by AEG.
-- The city would take in about $410 million in "net new revenue" over 30 years--$210 million would go to city coffers and $200 million would go to repay bonds.
The Ad Hoc committee meets to discuss the Farmers Field project on Wednesday and Thursday this week. The whole City Council will consider the matter on Friday, but City Councilmember Jan Perry tells the LAT there probably won't be a vote taken.
· Stadium proposal shifts more risk to developer, officials say [LAT]
· City Touts Stadium Deal as Safe for Taxpayers [blogdowntown]