CITY RECEIVES GUARANTEE FROM ARENA BUILDERS.

Byline: Rick Orlov Daily News Staff Writer

Responding to criticism, developers of the proposed downtown sports arena have agreed to guarantee repayment of the city's $70.5 million investment, sources said Thursday.

In addition, developers Edward Roski Jr. and Philip Anschutz plan to release - possibly as early as today - contract provisions committing the Los Angeles Lakers and Kings to playing in the arena for 25 years.

``This is all part of the negotiating process and we think it will work out for everybody,'' one source said.

The action by the developers came only hours after Councilman Joel Wachs vowed to put out an army of 1,000 volunteers to qualify an initiative for the June 1998 ballot requiring voter approval of spending any city money on professional sports teams.

Told of the possible guarantees on the cost of a $70.5 million city bond issue, Wachs said he was pleased but would proceed with the initiative.

``If they're sincere, they won't be affected by this,'' Wachs said. ``We're writing this in such a way that voter approval is required only if the city money is not guaranteed. The only thing driving them is the threat of this initiative.''

City Council President John Ferraro would not discuss any details but said he has suggested to city negotiators and representatives of developers to make a better offer to the city to head off continuing controversy over the city's costs.

``I think we'll be able to come up with something that will satisfy everyone,'' Ferraro said.

Wachs said he has been overwhelmed with the public anger at the proposed city investment.

``Everywhere the public has had a chance to vote on using tax money, the developers have come in and sweetened the pot,'' Wachs said. ``The citizens here deserve no less.''

Wachs said his proposal will need the signatures of some 61,000 registered voters to qualify for the June 1998 ballot.

Questions have been raised as to whether Wachs' proposal - if approved in June - could apply to the sports arena deal if it is approved in the next two months.

Wachs said he believes his measure still would affect the arena since he is filing the papers for the initiative next week, before final approval.

Wachs said he has gotten more than 500 calls on his hotline at [phone].

``Everywhere I go, people don't want to see their hard-earned tax dollars going to help billionaire owners and mega-millionaire athletes to pay for luxury boxes they will never be able to set foot in,'' Wachs said.

Officials with the Los Angeles Arena Co. did not return telephone calls. In the past, they have criticized the Wachs proposal as obstructionist and said he was sending a message that the city is unfriendly to business.

The City Council is expected to give final approval within the next two months on a memorandum of understanding allowing work to proceed on the arena, which includes demolition of the North Hall of the Convention Center.

Councilman Mark Ridley-Thomas criticized Wachs' proposal.

``I wish he would think twice about retarding development in an area of the city that so sorely needs it,'' Ridley-Thomas said.

Wachs has been a consistent critic of the need for city dollars on the $240 million, 20,000-seat facility without guarantees the city will be repaid for its investment.

While the developers and city officials said they believe there will be enough tax revenue generated to cover the city's annual costs of $7.5 million, Wachs has said he wants a guarantee it will be covered.

To assist him in the effort, Wachs has hired political consultant Rick Taylor. Taylor also has served as the consultant for several Inglewood officials, including Mayor Roosevelt Dorn and Assemblyman Edward Vincent, D-Inglewood.

Inglewood had been in the running to try to keep the Kings and Lakers.

Taylor said he was not working on behalf of Inglewood and pointed to other campaigns in which he has been involved, including on behalf of Mayor Richard Riordan and Ferraro.