As I’m sure you’ve heard by now, the Los Angeles City Council voted
unanimously on Tuesday to approve the memorandum of understanding on
Farmers Field and the New Hall for the Los Angeles Convention Center.
I wanted to personally express my gratitude for your time, effort, and
support of Farmers Field – and I couldn’t just do it in writing. Please
take a look at this video I recorded and share it with all of the Farmers
Field fans you know:
This project – and the jobs, economic revenue, city pride and professional
football it will bring with it – would not have been possible without your
There is still a lot to do before we break ground on the project. Stay
tuned for updates on the progress of Farmers Field, and for ways that you
can stay involved in the process.
For now, pat yourself on the back for a job well done. From everyone at
AEG, thank you for your support.
President & CEO
Even as Leiweke was blasting out his “thank you” to the business, labor and civic leaders who aligned with his NLF stadium proposal, new questions were being raised about the claims made about the financial benefits to the city and region.
Associated Press writer Jacob Adelman, doing far and away the best reporting on L.A. these days, went through the details of AEG’s and the city’s analyses of the project and after talking with experts concluded that “a close reading of an economic study that AEG released last month shows that the promise of a sales and property tax windfall appears to be overblown.”
“It anticipates a highly optimistic number of events, some of which would not be new to the region. And a chunk of the tax revenue included in the tally is apparently already spoken for by other projects.”
AEG’s financial study by Metropolitan Research and Economics estimatedthat new economic activity from the stadium and rebuilt LA Convention Center would yield $41.8 million a year in new tax revenue for the city, county and state, with more than half going to the city,” $11.6 million hotel room taxes.
Yet, two of the largest hotel offerings in the area got breaks on those taxes to spur their development. The JW Marriot and Ritz-Carlton hotels in AEG’s adjacent LA Live entertainment complex get to keep their respective room taxes until 2035, unless better-than-expected business gets it to a maximum rebate of $246 million before that.
“Also unlikely to materialize are the $3.1 million in property tax and $1 million in parking taxes that the study says would go to the city, since the deal approved this week would earmark that cash for the repayment of a loan taken out to move the convention center building.”
Adelman notes the city’s own consultants expect $14.7 million in new taxes to the city, a third less than AEG’s study.
“With the vast majority of sales tax money going to state and county government agencies, it is questionable how much of an impact on tax rolls these events would be if they are simply shifted around the region, said David Carter, a sports marketing professor at the University of Southern California’s Marshall School of Business.
“Is the fact that you’re moving the game two miles going to affect how much is spent?” he said. “How much is that spending actually different from what is already occurring in the area?”