LOS ANGELES (CNS) — The Los Angeles City Council on Wednesday advanced a $54 million proposal for initial work to modernize and expand the downtown convention center in preparation for the 2028 Olympics.
The City Council voted 13-1 to allocate the funds and move forward with pre-construction work, but several council members expressed concern about the tight timeline the city has to complete the project.
This preliminary work will help the city determine whether the renovations can actually be completed on time — and if the results show that can’t be done, elected leaders will have the power to halt the project.
Councilman Marquise Harris-Dawson was not present for the vote.
City Councilwoman Karen Price, whose 9th District includes neighborhoods in South Los Angeles and the convention center, said renovations to the facility have been in the works for a decade.
“We’ve faced some significant challenges in terms of expansion and motivation, but at this point I think we’re ready to move forward,” Price said. “Not only will Los Angeles have a world-class convention center to be proud of, ready in time for the global stage, but it will also create thousands of jobs — full-time and temporary.”
Councilwoman Monica Rodriguez, the lone dissenting vote, reiterated her concerns about the plan, mainly about the timeline, the actual cost coming in at about $100 million after compounding interest, and the lack of hotel rooms near the facility.
“As it stands, these things fall short, and that’s why I can’t support this,” Rodriguez said.
In a joint report, the city’s chief legislative analyst Sharon Tso and Chief Administrative Officer Matt Szabo estimated the project would cost $4.7 billion over 30 years, including debt.
The proposal outlines that none of the existing facilities would be demolished, with new construction connecting parts of the building and adding 190,000 square feet of exhibit hall space, 55,000 square feet of meeting room space and 95,000 square feet of multi-purpose space.
Szabo said the project, if approved, would create about 7,400 new jobs and 2,100 new continuing jobs during the expansion and attract an additional 500,000 visitors. Officials also said the project would generate $165 million in new spending each year and bring about $570 million into the city’s general fund over 30 years from business, sales, parking, hotel taxes and advertising revenue from digital billboards.
The new revenue will reduce the city’s cost to about $43 million a year, Szabo said.
If the convention center project proves viable, the city would pay for its construction, but the work would be done through a public-private partnership between Anschutz Entertainment Group, which would operate the center, and developer Plenary Group.
“We believe this is the only way forward if we want to complete construction by March 2028 or sooner,” Tso previously said.
The convention center will be the site of boxing, fencing, taekwondo and table tennis for the 2028 Summer Olympics.
The council’s tourism and trade committee and budget, finance and innovation committee already approved the proposal in June.
Business leaders and some labor unions have urged city officials to go ahead with expanding the tournament.
Central City Association president and CEO Nella McCosker on Tuesday congratulated the city council on its decision, saying the expansion was a “generational project” that would help grow the local and regional economy.
“I thank City Council for making the right decision to move forward with the project, and our business, worker and civic community stand ready to work together to achieve this ambitious but necessary timeline,” McCosker said in a statement.
Copyright © 2024 City News Service, Inc. All rights reserved.