DOWNTOWN ARENA GETS BOOST FROM CITY OFFICIALS.

Byline: Rick Orlov and Lisa Van Proyen Daily News Staff Writers

Ambitious plans for a new Los Angeles sports arena took two decisive steps Thursday when key city panels recommended approval of the $300 million project to revitalize downtown.

In a 4-0 vote, the City Council's Ad Hoc Committee on the Los Angeles Arena urged the full council to approve a permanent home for the Los Angeles Kings and Lakers when it is considered Tuesday.

``Whether people like sports or not, this is about the economic good for all the city,'' Councilman Richard Alatorre said. ``This is not just about sports. It is about what can be done to revitalize the city.''

Also Thursday, the Community Redevelopment Agency voted unanimously to approve $12 million to make public improvements in the area.

``I think it's actually (getting) blood out of the turnip,'' said CRA Chairwoman Christine Essel. ``It's really to enhance the whole atmosphere and the economy of the downtown area.''

The redevelopment funds will go toward public improvements including water and sewer lines, tree planting, street improvements and sidewalks.

The action attracted little opposition. Only three residents appeared at the hearing to object to the plan.

``This sports arena is a joke,'' said Miriam Fogler of Arleta. ``Let these teams come in and spend their own money. We don't want to spend our tax money.''

Under the overall arena plan, the city would also acquire adjacent land needed for parking, with the hope that the developers would build a hotel and entertainment complex to try to bring new business to the Convention Center, which now costs the city some $40 million a year to operate.

The agreement could produce a $60 million profit for the city with new tax revenue, said City Administrative Officer Keith Comrie.

The plan also calls for the relocation of 188 families and a children's center operated by the Los Angeles Unified School District.

CRA Administrator John Molloy said plans are already in the works to accomplish both, with the school district looking to create two facilities.

As for the families, Molloy said the CRA already has found larger and newer apartments and will cover the relocation costs.

Also, city officials said the developers and city have worked out a job training and recruitment program for residents in the immediate area during construction of the arena and afterward for jobs at the new facility.

Thursday's developments are significant steps along a torturous path toward construction of the 22,000-seat arena on the site of the Convention Center's North Hall. The plan is proposed by Kings owners Edward Roski Jr. and Philip Anschutz.

Chief among the roadblocks was the concern by Councilmen Joel Wachs and Nate Holden over the possibility that the city would not be repaid $70 million for the purchase of land next to the arena site. The land is needed for parking, and possibly a hotel.

And at certain points, the developers threatened to halt all negotiations and move their facility elsewhere.

Wachs, in his own negotiations with developers' representatives, won an agreement that the developers would cover the city's $5.2 million in annual costs through a ticket surcharge and money generated from overflow parking. Even if revenue doesn't reach that level, the developers said they would cover city costs.

In return, Wachs agreed to drop the arena from his planned initiative that would require public approval if tax money is spent on professional sports franchises.

``This is a good deal for us and a good deal for the city,'' Roski said after the committee action. ``We think we will be able to have a world-class facility that can host political conventions, entertainment events like the Grammys and other productions that will be important to the city.''

While Wachs has now endorsed the project, Holden has remained skeptical and is considering his own drive to require a public vote on the project.

Also, former Councilman Ernani Bernardi said he continues to consider a lawsuit over plans to use $12 million from the Community Redevelopment Agency.