CONTRACT BOOSTS WACHS' SUPPORT OF ARENA PROJECT.

Byline: Rick Orlov Daily News Staff Writer

With assurances from developers that the city of Los Angeles would not face financial liability, Councilman Joel Wachs softened his call Thursday for a public vote on spending tax money for a new sports arena downtown.

``I am pleased the owners have said they intend to assure repayment of the city's investment,'' Wachs said. ``This is exactly what we've been asking them to do for more than a year.

``However, there is still an urgent need to put their promise into a legally binding and secure guarantee.''

His statement was welcomed by representatives of developers Ed Roski Jr. and Philip Anschutz, the co-owners of the Los Angeles Kings professional hockey team who have proposed a 20,000-seat arena for the Kings and Los Angeles Lakers pro basketball squad in downtown Los Angeles.

``We're happy to see that he's recognized that we've agreed to provide a deficit guarantee that will protect the taxpayers of the city,'' said John Semcken of Roski's Majestic Realty Co. ``We're anxious to move forward and will be available to meet with anyone on the city team, including Councilman Wachs.''

Wachs said he came to his decision after reviewing documents submitted by the Los Angeles Arena Co. in which they said the guarantee would come from a national financial firm or insurance company.

Wachs had proposed an initiative requiring voter approval of any public money being used for a sports facility, but he said Thursday he would consider changing the proposal.

While facing a deadline to qualify the initiative for the June 1998 ballot, Wachs said he has delayed a planned trip to Europe to confer with legal and financial experts.

``If there is really a good faith effort on the part of both parties, we should be able to proceed with an arena which truly pays for itself and, at the same time, set the standard which all future developers will have to follow,'' Wachs said.

The councilman has been the most vocal opponent of the arena project, voicing concern over the potential cost to the city and guarantees the two teams would remain in the facility for 25 years to pay off a $70.5 million bond.