Comment on this post

Tim Leiweke Says Thank You L.A. — New Questions about Bloated City Revenue Claims



Hi
——,

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
hard work.

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.

Sincerely,

Tim Leiweke

President & CEO
AEG


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.  


He concludes:

“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?”

(READ FULL STORY)

Enhanced by Zemanta
This entry was posted in City Hall, Hot Topics, Los Angeles, NFL Stadium and tagged , , , , , , , . Bookmark the permalink.

15 Responses to Tim Leiweke Says Thank You L.A. — New Questions about Bloated City Revenue Claims

  1. Anonymous says:

    Ron, thanks for all your hard work on this corrupt issue keeping us informed. I think its about time something gives back to these assholes. Why doesn’t the LANCC invite the Majectic People to a meeting soon? The Village Idiot Tim Lieweke took his bullshit dog & pony show all over the city with his fixed numbers which no one believes. A lot of people agree with me that’s its about time to WELCOME Majectic into our City and let them know there are many of us who support their proposal instead. Do we not have a right to hear it? LANCC would be the perfect place to have a presentation to finally hear the other side. After all its our City since no one else cares to put out the truth except Ron, how do we get LANCC to invite Majestic to their meeting?

  2. Anonymous says:

    This sheer nonsense public relations. 100,000
    people out of almost 4million is not peanuts. All we have to remember is that the Rams left LA
    in disgust. And it is 4,000,000,000 people
    who are being held hostage, not the 50,000K union
    members and who knows how many stock holders of
    AEG.
    It is not over until it is over. In my opinion,
    we have just begun to fight these individuals who
    consider our city as their private gold mine.
    Not only AEG, but also CRA and any other of City
    Council Jan Perry and her ignorant fellows on the
    city council.
    The first thing we need to do the next election is vote out all incumbents no matter what job they hold now. Certainly Zine, Greuel, Perry, and you know in your own district. Just
    refuse to re-elect in your own district. Let us
    ACT. Thank you, Ron, you are so special. I join all who apprecciate you.

  3. Zuckerkhan says:

    I think that would be a great idea to let Majestic in any meeting they want. Yet, AEG, supporters of their project, should be able to do the same.
    Check out how Majestic is already shovel ready:
    http://www.sgvtribune.com/stadium/ci_13564969
    http://www.sgvtribune.com/portal/stadium/ci_11996296?_loopback=1
    So, AEG/Tim Leiweke/ and the City of LA are bad, yet Majestic and the State of California are good? Is closed door meetings in Sac. any different then closed door meetings in LA? Both are bad? Or is one bad and the other is good?
    Majestic has an EIR that is for an industry park, not a stadium. How did they get away with an EIR for not even a stadium?
    Also, Tim Leiweke is trashed here for the Staples Center (and LA Live), yet Roski is good. Well, guess who is apart of the Staples Center group: Roski.
    The City of Industry is not in the City of LA. Los Angeles, the City will see nothing from this project.
    And Anonymous on August 11, 2011 12:42 PM, please check some blogs from Diamond Bar. A lot of people over there think that the NFL stadium belongs in the “City”. They should be allowed at AEG meetings.

  4. Anonymous says:

    2:05pm. – the game is over and you lost. You all stood idly and pontificated while the special interests were becoming more and more entrached. Plus you all are too PC to fight some of these crooks & thieves. Face it – you lost. Very few people bother to vote and somebody like Villar can easily muster a winning mass of union members, white-guilt robots, Latinos who are used to be told who to vote for, etc.
    You should have fought hard before. Now it’s too late.

  5. Anonymous says:

    You are wrong, I have been against this venture
    since the Convention Center was built. It was
    much ado about nothing and so is this effort by AEG. Why do you not help instead of being so pleased with yourself.
    Ask the Rams why they are successful in Saint
    Louis.

  6. Anonymous says:

    No way in hell should AEG be invited to any meetings Majestic is at in our City. I didnt’ see the corrupt developers at AEG invite them to theirs. The problem in LA is we have media that is tabloid and tainted. Not one credible source in the bunch, they act like high school journlists kissing ass where they can. If we started welcoming Majestic into our City to hear their side of the deal we are entitlted and who can say NO to us. Communitiy meetings are not run by the City. LANCC is the best place because you get 71 or more Neighborhood Council reps in attendance. Why have we been only thrown the bullshit side of AEG and no one else? Its time we start doing things our own way and ask Majestic to come out to where people here support them. There’s a hell of a lot of us but the media doesn’t put our voices out there.

  7. Zuckerkhan says:

    Rams successful in St. Louis? Yes they won one Superbowl in St. Louis. They won one NFL Championship in LA and one in Cleveland (yes, that was where they were first from).
    Here is they’re 2010 attendance:
    http://espn.go.com/nfl/attendance/_/year/2010
    81 percent filled. Ranked 30th out of 32. Hmmmm, not so good.
    Here is how easy there lease is to break (this is a St. Louis source BTW):
    http://www.stltoday.com/news/local/metro/article_df40eeaa-1321-500b-afd7-c8e543ba797e.html
    Please note this quote: “That’s the requirement that come 2015, the Dome must be a “top-tier” facility — one that’s superior to three-quarters of all NFL venues. It won’t be an easy bar to meet at a time when the newest, glitziest stadiums have broken the billion-dollar mark.”
    The Rams are doing so well in St. Louis that they are ranked 29 in the NFL in Team Valuations. That’s 29th out of 32 teams. And somehow, rank behind powerhouse revenue machine Buffalo Bills.
    http://www.forbes.com/lists/2010/30/football-valuations-10_St-Louis-Rams_307693.html
    AEG has already set-up a partnership with Farmers for naming rights of 700 million for 30 years. With the Rams “only worth” 779 million, maybe AEG can help them raise their “total value”. Stan Kroenke has a relationship with AEG already and this should be noted.

  8. Zuckerkhan says:

    Anonymous on August 11, 2011 4:04 PM,
    So its ok for Majestic to show up to AEG’s meeting, but not the other way around? Huh? Wow.
    These guys work together anyways. Like I said before, Roski and AEG developed the Staples Center. Roski has kept his tone for quite on AEG’s Farmers. His side kick has been a little “louder”.
    AEG will get this stadium done. For the owner/owners who move their teams to LA, Farmers Field allows them more sharing of revenue streams.

  9. Anonymous says:

    revenue streams for whom not the taxpayers of this city. If you actually sit down and read all the paperwork on this MOU it is filled with so many loopholes and AEG comes out on top. The City key points to get revenues back.

  10. Zuckerkhan says:

    Anonymous on August 11, 2011 5:22 PM, the Farmers Field will produce much more revenue streams for any team that comes into agreement compared to that of Majestic. Also the City of LA will make a lot more money from Farmers Field then Majestic’s City of Industry Plan, the City will get nothing on that location. It’s the City of Industry, right? Not the City of LA.
    And I wonder how much the City will collect on more hotel rooms being booked? What about the projects that are already in the works: two more Marriot’s across the street on Olympic. The new 7th and Fig (Target). The new towers at Wilshire Grand Hotel. More development…already taking place.

  11. James McCuen says:

    Since the MOU was non-binding there will be an opportunity for independent analysis of all the details of the agreement.
    That leaves between 6 to 12 months.
    Then an accurate and credible presentation could be made to the public. So there is still an opportunity to opt out.
    Or if the MOU stands the test of full scrutiny, then AEG and LA, Inc can finalize the MOU, apply for land use approvals and start the project after one year.

  12. LeslieAyres says:

    Thank you Tim & AEG for bringing an NFL Team to LA.

  13. Anonymous says:

    I played football in the back yard with rocks and glass; EIR, no problem.

  14. Anonymous says:

    Nine comments later and no one bothered to object or even mention in passing Anon @ Aug 11th 3:27 p.m. racist remark about “Latinos who are used to be [sic] told who to vote for [sic]”
    If you ever wonder why your coalition for reform does not attract larger numbers, you might want to examine the casual acceptance of those types of remarks. I’m sorry to have to inform you but the bigot population is nowhere near the majority in LA so either you must continue to toil in obscurity or maybe consider ejecting those elements from your coalition.
    I’m looking at YOU Ron Kaye!!!!

  15. Scott Zwartz says:

    The fact that AEG needs to abolish the judicial system as it applies to this project makes clear that it is a massive scam filled of lies and frauds.
    If AEG cannot count on L.A.’s typically business friendly judges (ah, the wonders of money) to do their bidding, AEG, Garcetti, Tony V, Perry, etc. must have some horribly foul deeds up their sleeves.

Leave a Reply

Your email address will not be published. Required fields are marked *

*

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>