ARENA PLAN CALLED THREAT TO DOWNTOWN.

Byline: Rick Orlov Daily News Staff Writer

The dispute escalated Tuesday over the impact on the Los Angeles Convention Center and downtown businesses if a $240 million sports arena-entertainment complex is built in the area.

Councilman Joel Wachs, who has emerged as a leading opponent of the proposal to move the Los Angeles Lakers and Kings from Inglewood, said he has been besieged with complaints from firms that use the Convention Center about the proposed complex and the cost to the city.

``The arena promoters are trying to sell it to the city on the false promise that it will rescue our financially ailing Convention Center,'' Wachs said at a City Hall news conference.

``Nothing could be further from the truth. In fact, the proposed arena deal as presently structured will actually hurt the Convention Center rather than helping it, plunging it into even greater debt.''

Wachs' continued opposition came even after an hourlong meeting with Kings owner Ed Roski Jr., who gave the councilman his views on how the project would be financed and what he sees as the benefits to the city.

However, aides said the meeting - described as amicable - did not change Wachs' views.

Representatives of two of the major shows held at the Convention Center, the L.A. Auto Show and the California Gift Show, said they were upset at not being consulted and concerned at the loss of space if the North Hall is razed for the new arena. Wachs said he has received other calls and letters from Convention Center customers voicing the same concern.

``This could result in the loss of millions of dollars to the city,'' said Andy Fuzesi, general manager of the L.A. Auto Show. ``We feel we should have been consulted on this because of the impact it will have on our show.''

But Steve Soboroff, the special adviser to Mayor Richard Riordan who is pushing for the arena proposal, said any concerns over scheduling would be resolved.

``It's called coordination,'' Soboroff said. ``Madison Square Garden has 400 events a year and they are able to deal with it. The NHL and the NBA can make their schedules so there is no conflict with any of the shows. Every other place in the country is able to do this.''

Riordan spokesman Steve Sugerman said the Mayor's Office also has contacted a number of the major firms that use the Convention Center and assured them that any scheduling problems could be worked out.

Also, a downtown leasing company, CB Commercial Real Estate Group Inc., released its own analysis in favor of the arena, saying it could boost the number of conventions held in the city and help the rest of the downtown area.

``The arena is projected to increase the economic viability of the Convention Center and provide greater opportunities to attract visitors to downtown and the city,'' the report said. ``Connected to the Convention Center, the arena can be used as a . . . day facility, which will lure additional convention business to downtown.''

Kathryn Schloessman, senior vice president of the firm, said the arena also would help revive the sagging downtown commercial real estate market.

``This is an opportunity to bring business back to downtown,'' Schloessman said. ``If we don't get this arena downtown, this whole market will be in the tank for the next five years. We finally have an opportunity to invest a little money to get a lot of people downtown.

``We believe the whole area will build up and instead of people going to their conventions and then getting out of downtown, we can make this a 24-hour city.''

Schloessman said her organization's concern is the ongoing losses at the Convention Center, $18 million last year and a projected $38 million for the coming year.

Those losses come even as the facility has seen an 11 percent increase in use of its facility.

Dick Walsh, Convention Center general manager, said there were 240 events held at the facility last year, bringing in $5.5 million.

But Wachs said he believes the arena will not improve that situation and that its cost is too high for the city. Wachs has estimated that the deal could cost the city up to $279 million.

``If this is such a good deal, why are they getting all the goodies and the taxpayers have to pick up the costs?'' Wachs said. ``If this is a good deal they will give us some guarantees and share with us in the revenues.''