BOARD PASSES ARENA VOTE ON TO COUNCIL.

Byline: Rick Orlov Daily News Staff Writer

Plans for a downtown sports arena cleared an important hurdle Wednesday, but questions about the financial risks to the city were referred to the full City Council.

The Board of Referred Powers, a group that considers projects when the Planning Commission has a conflict of interest, approved a conditional use permit for the $240 million facility on the site of the Convention Center's North Hall.

However, the board refused to deal with the financial implications of the project, saying that should be left to the full council.

``I am voting to move this forward only to allow the council to discuss it,'' Councilman Hal Bernson said. ``Unless there are guarantees that our bonds are secured, I won't vote for it.''

The 20,000-seat arena would serve as the home of the Los Angeles Lakers and Kings as well as a venue for concerts and other events during the year.

The Board of Referred Powers, which is made up of five City Council members, took up the matter because a former member of the Planning Commission was a partner in a law firm involved in the development.

The project is controversial because it would require a $70 million city investment, and there are questions whether it would generate enough revenue to cover the city's $7 million annual cost.