NFL Stadium Downtown Could Generate $41 Million a Year in Tax Revenue: LA Neighbors United Wants Cash Guarantee For Citizens
Are you ready for some ... tax revenue.
Go, tax revenue.
Yeah, we're talkin' Monday night tax revenue, Sunday afternoon tax revenue, tax revenue all year 'round.
That according to Anschutz Entertainment Group, the people who run Staples Center and who want to install an NFL stadium atop city owned property next door.
AEG unleashed a forecast today that says ...
... its proposed stadium could generate $41 million a year in taxes, with $22 million of that going to the city of L.A.
Whew. Where do we sign up?
The city has yet to approve the plan but it looks like a done deal, what with a council committee working in the shadows (open meeting laws allowing you to join in don't apply to this ad-hoc group, apparently) to come up with a memorandum of understanding with AEG.
And now that the NFL player lockout could be coming to an end, we might see this deal take off like Reggie Bush.
AEG's projection comes from a study it commissioned, a report that also says as many as 14 new conventions would come to L.A. as part of its stadium project. (The plan would also revamp the Convention Center's West Hall, where the venue would be built).
Another rosy claim: The stadium would attract 2,400 new hotel rooms that would generate $175 million in spending in central L.A.
The group LA Neighbors United is wary.
It took out a full page ad in the Los Angeles Times this week stating that:
Yes, new tax revenue is expected from the stadium deal, but it will be used to service project debt, and it could be used to fund management, operations and infrastructure related to the convention and sports facility ... in other words, go right back into the stadium owner's pocket.
The organization is calling on the L.A. City Council to demand a "a minimum annual revenue guarantee" from the stadium to the citizens if it's built. Cary Brazeman, the group's leader, says:
The deal should include a minimum annual revenue guarantee to the city, beyond the debt service guarantee. The project is going to generate a ton of cash on a prime site that could be redeveloped in other ways.
The debt service guarantee is for cash AEG wants the city to borrow for the project, $300 million or so worth.
AEG honcho Tim Leiweke told the Weekly not one cent of taxpayer money would go toward building the stadium.
So are you ready for a new grid iron, L.A? Or at least some complicated spread sheets?