CITY OK'S SUBSIDY FOR HOTEL PROJECT.Byline: Rick Orlov Staff Writer Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. city officials announced an agreement Friday for the city to heavily subsidize construction of the long-sought 55-story, 1,200-room Convention Center hotel-condominium complex in downtown Los Angeles Downtown Los Angeles is the central business district of Los Angeles, California, located close to the geographic center of the metropolitan area. The sprawling, multi-centered megacity is such that its downtown core is often considered just another district like Hollywood or across from Staples Center This article has multiple issues: * Its neutrality is disputed. * It may contain original research or unverifiable claims. * It does not cite any references or sources. . Hilton Hotels
Planned as part of a $1 billion entertainment complex on what is now a parking lot, the project also will involve a limited - but costly - role for the city. ``We have minimized the city responsibility in this,'' Leiweke said. ``We felt it was important to move ahead and not deal with the complications of potential lawsuits with any level of direct public funding Public funding is money given from tax revenue or other governmental sources to an individual, organization, or entity. See also
However, the memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. , scheduled to get its first hearing next week, will involve significant costs to the city, which already is losing millions of dollars a year on the Convention Center. Among these: --Reinvest all hotel bed taxes - estimated at $6 million a year - back into the project for a 20-year period. --Make available a $22 million loan, at a 5 percent interest rate to be paid back in 30 years. --Invest $10 million of public funds See Fund, 3. See also: Public for infrastructure improvements. --Waive all fees for building permits for five years. ``This is a small investment, comparatively, to what the city will get in return,'' said Jack Kyser, chief economist The Chief Economist is a single position job class having primary responsibility for the development, coordination, and production of economic and financial analysis. It is distinguished from the other economist positions by the broader scope of responsibility encompassing the of the Economic Development Corp. ``A convention center hotel is what has been needed to make the Convention Center a success. This is a time to fish or cut bait. Without the hotel, you might as well close down the Convention Center.'' And, Leiweke said, without the hotel, the plans for ``Times Square West,'' the entertainment-retail complex being planned for around the area, will be abandoned. ``If there's no hotel there, we might as well keep parking cars there.'' Wolff said the city share was minimized compared with other projects he has been involved with to develop similar properties. ``We are asking all the partners to make an investment.'' Wolff said. ``AEG AEG Aeger (Latin: Sick) AEG Allgemeine Elektrizitäts-Gesellschaft (Common Electricity Company) AEG Aircraft Evaluation Group AEG Association of Engineering Geologists AEG Air Expeditionary Group is putting up their land, Hilton is making a loan to the project, Apollo is putting in $50 million to $60 million. ``We think what we are asking from the city is reasonable and a lot less than most other communities put up.'' Mayor James Hahn had placed a high priority on the agreement, said Deputy Mayor Renata Simril. ``Given the circumstances of how most such hotel deals are being financed across the country, the mayor feels this limited the city's liability. ``We are making a loan and a modest investment for a $1 billion project that will create thousands of jobs. And we believe it will help us with a $20-million-a-year problem in paying off the Convention Center bond and make Los Angeles competitive again in the convention business.'' However, Peter Zen, general manager of the Bonaventure Hotel and an outspoken critic of the plans, said he was unconvinced about the proposal. ``I have the same concerns I always have and that is why should these people be able to have a $6-million-a-year advantage. I could use that money for my hotel. The city could use that to hire more police officers.'' Jon Coupal of the Howard Jarvis Taxpayers Association Howard Jarvis Taxpayers Association helped sponsor Proposition 13, the property tax-cutting initiative in California in 1978 which slashed property taxes by fifty-seven percent and initiated a national tax revolt. It was founded by California republican Howard Jarvis. questioned why such a large subsidy was needed. ``It just sounds like a boondoggle boon·dog·gle Informal n. 1. An unnecessary or wasteful project or activity. 2. a. A braided leather cord worn as a decoration especially by Boy Scouts. b. with special treatment given to a developer,'' Coupal said. ``This is money that should be used for municipal services. If this project is commercially viable, then private industry should pay all of it.'' With the Times Square West project, AEG - which owns and runs Staples Center - is taking a major step as part of its downtown investment. The plans call for a 4-million-square-foot entertainment district encompassing a 7,000-seat concert theater, a multiplex theater operation of possibly 16 screens with seating for 4,000 people, a ballroom-meeting facility for 3,000 people along with bars, restaurants and other facilities around a 40,000-square-foot open-air plaza. Rick Orlov, (213) 978-0390 rick.orlov(at)dailynews.com CAPTION(S): map Map: Convention hotel site Daily News |
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