CITY, INVESTORS REACH TURNING POINT IN DEAL FOR SPORTS ARENA.

Byline: Rick Orlov Daily News Staff Writer

Negotiations for a downtown sports arena-entertainment complex entered a crucial stage Thursday with participants saying they were at a make-or-break point in cutting a deal.

With the city of Inglewood continuing its efforts to stay in the bidding, Los Angeles negotiators said they were struggling to iron out the details in a deal which would bring the Los Angeles Lakers and Kings to a downtown arena by 1999.

``We're being very positive about this and have reached a major agreement on how to keep this revenue-neutral for the city,'' said Steve Soboroff, Mayor Richard Riordan's special adviser who has been involved in the talks.

City negotiators met with representatives of Denver investor Philip Anschutz and Kings owner Edward J. Roski until about 3:30 p.m. Thursday when they took a break until 8 p.m., when the talks were scheduled to resume.

One major sticking point which appeared to have been solved was the $70.5 million in bonds that the city would promise to issue to fund demolition of the L.A. Convention Center's North Hall to make way for the arena and to buy property across the street for parking and a possible hotel complex.

Council members Nate Holden and Joel Wachs have sharply criticized the proposal, with the two complaining city tax dollars should not be spent on a privately owned facility.

Roski's negotiators have agreed to a ticket surcharge which would make up the difference for the city on the money needed to repay the bonds, which has been estimated at $7 million annually.

Meanwhile, officials in Inglewood, where the Kings and Lakers presently play at the Great Western Forum, were exploring ways to offer up to $30 million in inducements in hopes of building a new arena in their city.

Inglewood City Manager Paul Eckles said he had met with Roski on Wednesday to discuss that city's offer to him.

``We discussed different wrinkles on what we could do without having any new taxes,'' Eckles said. ``We gave them some proposals, and they got back to us this morning that they were interested.''

With an Inglewood deal still alive, John Semcken, senior vice president of Roski's Majestic Realty Co., said the Kings owner has become frustrated with the time it has taken to reach an agreement with Los Angeles.

Originally, Roski had set a deadline of Oct. 15 to give him time to build the 20,000-seat, $240 million facility in time for the 1999 season.

At one point Thursday, L.A. officials said the negotiations had caved in and both sides were ready to announce no deal could be struck.

However, several City Council members - among them Richard Alatorre and Mark Ridley-Thomas - contacted the negotiators to urge them to continue their talks.

Participants, asking not to be identified, said the remaining hangups in the talks revolved around who would be responsible for the lease if there is a default, as well as the ability of Roski and Anschutz to put together the financing for the project.

Another hurdle is an initiative proposed by Inglewood interests for the June 1997 ballot which would ask Los Angeles voters if they approve of using tax money for the project. If such a measure qualifies, it would make it difficult for Majestic to put together its financing package to build the arena.

A downtown sports arena proposal was first released in September and called for the city to turn over the property which the North Hall site at the Convention Center occupies and also acquire land across the street to serve as a parking lot and a potential site for a hotel and commercial-retail project.

Roski and Anschutz would have control of the land for 55 years, when it would be returned to the city.

Also, the two would have the first rights to develop the hotel complex.

To accomplish its part, the city would be required to issue up to $70.5 million in bonds for the land acquisition. However, controversy developed when it was learned the annual costs for city could be up to $7 million.