Plans to renovate the ERA convention center in the 1970s are moving forward, with Los Angeles City Council agreeing to spend $27.7 million on additional design and technical work on Wednesday.
The council’s lawsuit, a 14-1 vote, does not allow for major renovations, but shows that the council is firmly behind its efforts to overhaul the downtown structure despite forecasting a urban budget shortfall of nearly $1 billion next year.
The final vote is expected in July when the cost of the project becomes clearer and the City contract is finalized with APCLA. It is also known as AEG Plenary Conventions Los Angeles, a joint venture that oversees the construction of the centre.
Many business leaders and construction workers have been found to urge councillors to proceed with the renovations at both Wednesday’s council meeting and Tuesday’s committee.
Aaron Taxi, vice president of government affairs at the Hollywood Chamber of Commerce, said the modernised convention center will have a ripple effect beyond downtown.
“It’s an investment in Los Angeles,” Taxi said at a committee meeting Tuesday. “It’s an investment in our workforce. It’s an investment in businesses across our city.”
City leaders are hoping to overhaul the convention center as the two structures, South Hall and West Hall, do not provide the adjacent space required by first-class practices. City analysts say the tax revenue generated by hotels is losing out due to the lack of large events.
The planned renovations are fixed at more than $4 billion, including debt costs.
Add a segment to Pico Boulevard and connect the two holes.
Earlier this year, city analysts warned councillors that renovations were at stake, following concerns that the Palisade fire would need to focus on rebuilding the infrastructure.
However, in an updated report dated March 28, City Manager Matt Sabo and Legislative Analyst Sharon Tsuso offered a choice of a phased approach that would begin construction by the end of this year and end in 2029.
Construction will be temporarily suspended during 2028 games in several Olympic sports, including fencing and table tennis, which are planned at the convention center, Szabo and TSO said.
Max Reyes, Mayor Karen Bass’ senior economic policy director, appeared before the committee on Tuesday to reaffirm the mayor’s support for the project. Reyes said thousands of Angelenos rely on businesses from the convention center. Moving the project forward is about “the future of our city, not just downtown,” Reyes said.
Doane Liu, executive director of the city’s tourism division, told councillors at a meeting Tuesday that he expects revenue to double after the renovation.
The increase in revenue would offset the debt, but the city is facing a $45 million deficit to the General Fund for renovations, analysts said.
City analysts also warned lawmakers about several notable issues, including the need for state approval of digital signs towards the highway.
City Councilman Monica Rodriguez, who represents Northern San Fernando Valley, voted “no” at a meeting Wednesday, claiming that while cutting employee positions for the $1 billion deficit next year, money should not be allocated for the proposed renovations.
She told reporters Tuesday that the city “cannot continue to fund failure.”
“It’s clear from the start that this wasn’t achieved in time and frankly, it wasn’t necessary for the 2028 game,” Rodriguez said.
Rodriguez also voted against last year’s plan to spend up to $54 million on design, engineering and other pre-construction work to expand the convention center. At least $40 million of that money was spent.
City analysts said that pre-design and technical work funds are borrowed, not from the city’s general fund, and costs are included in the overall price of the renovation.
At Wednesday’s meeting, several councillors, including Katy Yaroslavsky and Tim McOsker, asked city analysts to report options to reduce the costs of renovations and increase revenue, including granting naming rights.
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