THE BOON OF AN L.A. ARENA : A DOWNTOWN SPORTS VENUE WILL SERVE AS AN ECONOMIC POWERHOUSE, BRINGING JOBS, PROSPERITY AND PRESTIGE TO THE CITY AS A WHOLE.

Byline: John Ferraro 

VIRTUALLY every resident and taxpayer in the city of Los Angeles has a stake in the success of the L.A. Sports Arena proposal, which drew a 13-2 vote of approval from the City Council on Wednesday.

In recent months, the news that developers were proposing to build a first class, state-of-the-art sports and entertainment arena downtown to serve as home for the Kings and the Lakers generated considerable excitement in Los Angeles.

Such a public-private development carries direct benefits:

It brings in two major-league professional sports franchises and provides a venue for other sports and entertainment uses.

It provides hundreds of jobs in the development, construction and operation of the arena itself as well as ancillary businesses.

It increases the city's revenue base for basic services citywide.

It sends the message - nationally and internationally - that L.A.'s a good place to do business.

The new arena promises to be not just a sports arena, but a huge economic engine for the city's future.

Initially, the clearing of the site and construction of the arena will eliminate undesirable land uses in the area, thereby improving the appearance and health of the neighborhood, increasing property values and providing a positive impact on business and tourism.

Another anticipated benefit is an increase in the economic viability of the Convention Center, helping to lure additional convention business and visitors downtown.

Once it's constructed and in operation, the new sports and entertainment arena is expected to serve as anchor for the development of a major hotel. as well as spark a ``spillover'' complex of dining, tourism and entertainment industry attractions - all of which provides a new stream of revenue to pay for city services.

As the media provides coverage of arena events, a positive message will be sent and the image of Los Angeles enhanced, both across the country and around the world.

It is also anticipated that the thriving sports arena will anchor one end of a sports corridor, providing synergy and opportunity for economic development and attention for the Coliseum.

Our city has faced challenges in recent years as the growth of the local economy stayed sluggish following the recession. Through investment of both public and private dollars in the core of the city, the arena proposal offers the potential of revitalizing the downtown and benefiting the tax base and image of the entire city.

Downtown is the heart of Los Angeles and if we let it die, the whole city dies too. Arena development all across the country - in San Jose, Phoenix, San Antonio, Cleveland and Minneapolis - have demonstrated how they infuse new life into the downtown areas, and spark economic growth, new jobs, and generate new revenues to lighten the burden on residential taxpayers.

Suburban sports fans and concertgoers benefit from the addition of a state-of-the-art arena in the heart of the city - and the suburban residents and the taxpayers benefit from the economic growth opportunities and new money to pay for police, fire and other vital services.

In Los Angeles, our city team and the developers negotiated long hours, worked through many complex issues, and came up with an equitable agreement, the start of an important partnership.

In the final analysis, the arena proposal also is a matter of civic pride. It has a symbolic importance and sends a message that Los Angeles is a ``can do'' city that is politically and economically capable of maintaining and attracting investments to the region.

What more rewarding venture could we embark on as the city of Los Angeles moves into the 21st century?

DEAL POINTS

L.A. Arena Co. responsibilities:

Construction of a $220 million sports and entertainment arena, with 20,000 seats, including 150 luxury boxes and 2,500 club seats on an 8-acre North Hall site at the Convention Center. Opening would be planned for September 1999.

The Los Angeles Lakers and the Los Angeles Kings would commit to playing their home games at the arena for the next 25 years.

City responsibilities:

Release the Convention Center's North Hall site from the lien of existing securities, demolish the North Hall, and convey property to the Community Redevelopment Agency, which will lease the land to the arena company for $1 a year for 55 years.

Acquire the Olympic properties and Figueroa properties (roughly 23 acres) and transfer to the arena company.

Relocate about 46 business and 188 residential units (900 residents).

Provide 1,500 parking spaces at the Convention Center's West Hall on Lakers and Kings game days and 800 spaces on other arena event days, with reciprocal parking to be provided by the arena company on the Olympic/Figueroa properties when the arena and Convention Center events conflict.

Cost:

The city will finance about $64 million for public items, such as property acquisition and demolition costs. The city also will be responsible for an estimated $7.5 million for residential and business owner relocations, school relocation, and administrative costs, bringing the city's contribution to $70.5 million.

City funding will be $20 million from Convention Center bond reserves (by replacing the cash with a surety bond) and a taxable debt financing to net $50.5 million.

Annual debt service and lost interest earnings would total approximately $6.8 million a year.

Revenues:

The city expects $1.3 million from the arena's generated additional sales, property and other tax revenues.

City revenues from overflow parking are estimated to be between $1.2 million and $1.8 million.

The city will levy a ticket fee at the arena to generate $3.5 million a year.

SOURCE: Councilman John Ferraro's office.

CAPTION(S):

Photo, Box

Photo: (Color) In the arena: Councilman John Ferraro stands in front of the Convention Center at a news conference for the proposed arena in August.

Box: DEAL POINTS (See Text)