Los Angeles City Council’s committee has been keeping itself busy with hearings on the proposed AEG Football Stadium. As fliers have been circulating in support of the new stadium, city lawmakers, union leaders and groups of businesses have been labeling the AEG Football stadium a “win win” situation to gain more support.Last week the Los Angeles City Council convened to discuss the memorandum of understanding put into place by the city and officials at AEG.
AEG currently owned by billionaire Phil Anschutz, who is also the owner of the Staples Center it is pushing to put the new stadium next to, and the L.A. Live entertainment complex. The AEG company’s president, Tim Leiweke is known in the area for making urban projects work, and making them successful. At the first hearing regarding the proposed AEG stadium back in February, local lawmakers and Mayor Antonio Villaraigosa were near instantly attracted to the proposal.
Despite being attracted to the proposal, lawmakers retooled it to make it more attractive. The recently updated AEG stadium proposal now puts more of the financial burden on AEG instead of the taxpayers. In compensation President Tim Leiweke requested that the council makes a decision by Monday, however the council balked at that.
In response to the delayed vote, AEG officials have threatened to pull out, however this is likely a bluff, as they have invested heavily in efforts to lobby in favor for their AEG Stadium. Lawmakers wishing more time though do not want to necessarily lead to AEG removing their offer from the table.
Under the AEG Stadium proposal AEG would pay for the NFL Football stadium worth $1.2 billion in private funds and expand the Los Angeles Convention center. This would lead to the creation of thousands of jobs in the entertainment sector.
The taxpayer is not expected to have to pay for anything, the AEG stadium will pay AEG back through rent. A NFL team is expected to relocate there and pay to use the new facilities. The naming rights have also already been sold to Farmer’s Insurance.
At issue though is what NFL team will play there. Los Angeles does not currently have a NFL team, so as mentioned one will have to relocate. Among possible teams that might be playing soon in the AEG stadium is the San Diego Chargers. There is however a $500,000 fee on a team owner for relocating to a new city. Reimbursing the owner of this fee to get a team into the AEG stadium may be enough to kill the deal.