Part of AEG’s proposal for an NFL stadium in downtown Los Angeles includes having the city hand over control of a valuable 2.4-acre downtown parcel 10 years earlier than otherwise planned, according to an Associated Press report:
AEG now says the city no longer needs access to the parcel, which experts said could be developed into retail and office space worth millions to the company each year in leasing revenue, because a new convention center building would be built along with the 72,000-seat stadium it has proposed.
The request is part of a so-called transaction overview that AEG sent to city officials in February.
“If the city is not going to use it, then there’s no need to hold it for them,” AEG spokesman Michael Roth said of the parcel, stressing that the company would need to go through a formal entitlement process with the city to have anything built there.
Okay, but still, handing over a piece of property for nothing represents an additional public subsidy for the project. (Absent this deal, AEG would have to make an offer to pay the city if it wanted to use the land before 2021.) A local real estate expert told AP that AEG could lease out the space for $6.75 million a year, which over a decade would be worth roughly $50 million in present-day dollars, though presumably you’d have to factor in the costs of financing developing the land as well. So, not a tremendous giveaway, but something else to add to the pot of this “no public money” project.
How ridiculous. The city of LA is supposed to simply “give away” property for free so AEG can make millions? If LA is giving away property, how do the rest of us get a piece of the action?
Build a billion dollar football stadium, and you can have free land, too, Dean. Deal?
We get a piece of the action by having things like the Super Bowl, International Soccer Friendlies, Summer X-Games and possibly, the San Diego International Comic-Con (which is our Mayor’s dream project for the film studios which would turn the pop-culture event into a full blown Hollywood Convention).
This stadium deal is already done, anyone that is close have said that 12 of the City Council are approving this project. This has more to do with the CBA and the NFL being able to bring back the G3 loan program.
Curbed LA has even been putting up articles about hotel companies making deals with AEG for parts of land they own. The activity is there because they’re going to get this thing built if the NFL owners get the CBA they want, which is why we may miss an NFL season. The owners will get the deal they want if the judge rules in their favor by allowing the lockout to continue.
Fat chance LA will get SDCC. Comic-Con just signed an extension with San Diego, and that city has agreed to further expand their convention center for the event. It seems highly unlikely they’ll leave San Diego after they already turned down the opportunity to come up to LA this year.
AEG wants to trap the tailgaters to spend their money in the LA Live district. That’s why they want the land. Good for AEG, but awful for the football fan who wants to meet up with friends without getting stuck in long lines or getting ripped off at overpriced restaurants.
I’m with Zizi Bug here. NFL games have become all day events and not having tailgate room would stink. My take is a little bit different in that I think that it’s going to hurt the NFL team and cause them to struggle at the gate. I think that an Industry stadium makes a lot more sense for exactly that reason.
Dan, they only extended to 2015 which is when the Farmers Field project is expected to be done. It’s been reported that they are interested in moving SDCC to Los Angeles because the movie studios extensive reach into the convention now. San Diego would still have to approve the expansion with redevelopment money. Believe me, where there’s smoke, there’s fire.
I personally like the City of Industry Stadium better but I think the Farmers Field project brings more benefit to the city and land will be sold like hot-cakes to build more hotels, parking lots, and retail/hospitality (restaurants, bars, etc) plaza’s. If developers and businesses know Farmers Field will be a reality, the whole dynamic of the city changes.
No dice, Ben. Our schools and cities are failing. State and local governments are strapped for cash. All revenue sources need to be considered. LA is in no position to be giving away valuable property.