DOWNTOWN SPORTS ARENA USE, ALCOHOL PERMITS OK'D.

Byline: Rick Orlov Daily News Staff Writer

The proposed sports arena for the Los Angeles Lakers and Kings cleared a technical hurdle Tuesday when a city committee recommended approval of conditional use and alcohol sale permits.

The City Council's Planning and Land Use Management Committee gave the nod to the $300 million project despite concerns by residents that environmental studies didn't properly evaluate the impact of traffic and other side effects of the 20,000-seat arena.

Although happy with the decision, officials with the Los Angeles Arena Co. expect the major battle to come next week when the Ad Hoc Committee on Sports Franchises reviews the project plans and development agreement before making its recommendation to the full City Council.

``Today was important for us and we're proceeding on a step-by-step basis,'' said George Mihlsten, attorney for the arena group.

However, Councilman Nate Holden said he will escalate his opposition to the project at the upcoming hearing and raised the prospect that the deal will need approval by a joint powers authority that governs the Convention Center, where the arena would be built.

``This battle isn't over,'' Holden said. ``We still have a long way to go.''

Lawrence Teeter, an attorney for residents opposed to the project, said the environmental report did not adequately address problems such as what would happen on city streets if an event were held at the arena and Dodger Stadium at the same time.

But Mihlsten said the report did address concerns over traffic and land use, and did take steps to mitigate the overall impacts of the project.

Also waiting to be decided is whether Councilman Joel Wachs will proceed with his plans to stage an initiative campaign to require voter approval of the use of tax dollars for professional sports teams.

Aides said he was been working to refine his proposal to meet the requirements of the City Attorney's Office.

Kings co-owners Edward Roski Jr. and Philip Anschutz have proposed building the arena as a new home for their team and the Lakers as well as to stage a number of other concerts and events. Eventually, they plan to build a hotel across from the facility to help bring in more conventions.