COLISEUM EXPLORING OPTIONS DEALS WITH USC, STATE DISCUSSED.

Byline: BILLY WITZ Staff Writer

Having spent close to $1 million in the pursuit of an NFL franchise that they suspect has hit rock bottom, the Coliseum Commission began to pay closer attention Wednesday to its bottom line.

They discussed a possible land swap with the state that could stave off a possible $2 million-a-year rent increase, they told legal counsel Henry Finkelstein his services aren't required -- for now -- and dropped the $10,000 per month retainer on strategic consultant Richard Lichtenstein, keeping him on instead on an hourly basis. They voted to begin discussions next month on what to do with the Sports Arena.

``I don't think we should slow down while we're waiting for the NFL to bestow some honor upon us,'' said Commission member Bill Chadwick.

The commission did apply the brakes to one area, its spending, which is near the $1 million mark since July, 2004.

The expenses were mostly for work on an environmental impact report, attorneys, architects, marketing and media consultants, and travel expenses to NFL meetings, according to Coliseum general manager Pat Lynch.

The commission's monthly meeting, coming on the heels of last week's NFL meeting in which several owners said that a stadium in Los Angeles was on the backburner, served as a platform for the commissioners to consider where they were and where they should be going with the 83-year-old stadium.

As seven of the nine commissioners took turns offering their assessments, a consensus emerged that while no deal is imminent and there's little more the Coliseum can do, it's important to continue a dialogue with the NFL.

Where a division occurred was over just how far should the Coliseum hold the door open for the NFL.

As it has seen its hopes for a deal with the NFL fade, the Coliseum has begun discussing a long-term lease agreement with USC, in which the school would be asked to help finance improvements to the stadium.

But how much interest would USC have in funding renovations if it weren't given exclusive use of the stadium?

``That is something we'd want to negotiate,'' said USC vice president Todd Dickey. ``There are various shades of gray to this issue.''

Zev Yaroslavsky, a county supervisor sitting on the commission, said USC would want ``unfettered control,'' and at some point the commission would be forced to chose between a deal with USC or keeping its options open with the NFL.

``That's when we'll have a fish or cut bait decision,'' he said.

But Commission president Yvonne Burke expressed the majority opinion when she said a deal with USC should include ``nothing that would foreclose (An NFL deal).''

The commission will further discuss the future of the Sports Arena next month, including putting out requests for proposals on the site. In 2009, the building will be eligible for a spot on the National Register of Historic Places.

``I don't know if that's a good thing or a bad thing,'' Chadwick said, noting that it could make the property more difficult to develop. He said the site could be used for affordable housing or something that complements the museums.

Any such plans could get the NFL's attention since it has expressed on- and-off interest in the past of developing the site. Among the proposals the NFL has considered were an amphitheater and a building that would house team offices, retail outlets, parking and a football museum.

One issue that appears headed toward resolution is the Coliseum Commission's lease with the state. When the previous 49-year lease expired last year, the Coliseum exercised an option to renew it figuring an NFL deal was imminent. But under the terms, if a price of rent is not agreed upon, a formula tied to real estate prices in Los Angeles County would be used to determine it.

The result would be the Coliseum's yearly rent could go from its current $80,000 to as much as $2.6 million.

This was the issue that several members of the Coliseum Commission said last month was driving them toward exploring options outside of the NFL.

To avoid such a heavy hit to their cash flow, the Coliseum has discussed selling five small parcels on the northwest part of Exposition Park -- many of them used for parking -- to the state. The parcels, which total several acres, are property the state had wanted to buy in the early 1990s when it became available.

But when the state was having trouble coming up with the funds, the Coliseum stepped in and purchased them.

The question is whether the land is valued at what the Coliseum paid for it, $7 million, or if should interest should be applied, which would bring the price to $18 million.

``What's being discussed is how much credit should there be for rent?'' said Chadwick.

Dale Bonner, a member of the California Science Center board, which is leading the negotiations for the state, hoped to have an agreement in 45 to 60 days.

``The state's intent is that the facility is sound and that the funds necessary to operate the facility are available,'' Bonner said after the CSC board meeting Wednesday. ``The Coliseum is an asset to which we ascribe great value.''

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