CRA BACKS PLAN FOR NEW SPORTS CENTER IN DOWNTOWN L.A.

Byline: Rick Orlov Daily News Staff Writer

The proposal to build a downtown sports and entertainment complex received a major boost Thursday when the Community Redevelopment Agency board agreed to acquire property for the $240 million project.

Commissioners voted 4-0 to turn over the North Hall of the Convention Center and to acquire adjacent property to lure Los Angeles Kings owner Ed Roski Jr. and investor Philip Anschutz into the project. The adjacent property would provide space for parking and possibly a future hotel.

``From a redevelopment perspective, this is a clear-cut case,'' CRA Administrator John Molloy told the panel. ``The staff urges swift, positive action on what is clearly a good deal for Los Angeles.''

Roski and Anschutz have proposed developing the sports-entertainment complex to serve as the homes for the Kings and the Los Angeles Lakers and as the venue for as many as 200 other entertainment events a year.

The CRA recommendation will go to the City Council, which is scheduled to consider signing a memorandum of understanding Oct. 15 for the developers to proceed with the project.

CRA approval is needed because the property is within one of its project areas and the agency has the power to acquire the adjacent property.

Steve Soboroff, special adviser to Mayor Richard Riordan, said he believes the CRA recognized the value of the project.

``They looked around at every other city that has done this and has received a billion-dollar return on their investment,'' Soboroff said. ``This is good for the city to get something that will revitalize the whole downtown area.''

Soboroff said he has been contacting various business leaders and other groups to get their support for the project before the council considers the matter.

Critics of the proposal, however, vowed a full-scale fight.

Councilman Nate Holden said he was disappointed by the CRA action and predicted the facility will never be built.

``The CRA is just a rubber stamp for the mayor and did what he wanted,'' Holden said. ``The people have yet to be heard from, and it will be a long time before this is over.''

If the North Hall property is turned over to the developers, Holden said there would be a taxpayer lawsuit to block it.

Holden and Councilman Joel Wachs have been the most visible public opponents of the project, with Wachs claiming that the project could cost the city up to $279 million over 25 years.

But Molloy said the city's costs would be limited to $70.5 million, less than other cities around the country have spent to redevelop downtown areas, and defended the city's involvement.

In addition, Molloy cited the city's failure in the past to attract a major hotel for the Convention Center area.

A study conducted for the agency said that a hotel never would be built in the area unless there are some attractions, such as a sports arena and entertainment facilities.

John Semcken, a vice president at Roski's Majestic Realty Co., said the developers are committed to building a hotel and have been talking with officials at MCA, Warner Bros. and Sony Corp. about becoming partners in some type of development to draw tourists.

In a related development, the local-issues committee of the Valley Industry and Commerce Association voted to back the project.

``We have a great opportunity to bring the Lakers and Kings to Los Angeles, and that will benefit the entire city as well as downtown,'' said Wendy Brogin, co-chairwoman of the committee. ``Our committee was particularly concerned about the the status of the Convention Center. The Convention Center is losing money, and the lack of a convention-serving hotel is crippling our ability to compete with other cities.''

The Convention Center this past year sustained losses of $20 million, and officials have estimated that it could lose $40 million this year.