3. Financial: explained the financial situation, gave details about how $350K bond to be paid (don't remember all details but involves some tax and fee monies). Stresses no cost to city. He did commit that AEG will pick up any shortfall annually on bond debt service (expected to be around $25M annually) -- this will be an operating expense of AEG, they won't expect to be repaid, they have similar arrangement with Staples Center). Steve Sann had questions about some incentives that hotels are receiving (hotels on Westside obviously aren't getting them so they are concerned they will lose business) -- but that is an issue particular to Westside hotels and I don't think others are particularly concerned about this.

Also: there will be 40-50 events a year at the stadium (not just football, which is 10-12 games only).
Don't have an NFL team lined up yet.
This is crucial; if no team then this whole thing will be withdrawn. AEG Power Point Presentation New development will focus on new convention business and big events as well as a new football stadium.
The stadium will have between 72,000-76,250 seats with a roof able to open and close.
New convention hall will have 169,000 square feet of floor space and 76,000 square feet of useable meeting room space.
The cost of construction for the stadium is projected to be $1.05 billion and AEG will pay for it.
The new convention hall will be built connected to the existing main convention hall and the total area will have approximately 1 million feet of contiguous space.
The new hall will cost close to $350 million to build and pay off old debt.
The City of LA will own and operate the convention center.
The stadium will be built on the old west hall site.
It is projected to take four years for construction and it will be phased.
Out of pocket costs, thus far, for Farmers Field (new stadium) is approximately $45 million by next May.
Construction on the new west hall will be paid by bonds.
This project will create 1,000 permanent jobs in addition to 3,300 construction jobs.
It is projected to create $45 million in new annual taxes thru property taxes and sales tax.
New residential and retail will be created in the area, including 4-5 new hotels.
Tourism and convention business is our biggest revenue generator.
The current west hall convention center was built in 1971 and needs to be updated or replaced.
Now conventions do not come to LA because of a split in the convention space flooring (two halls not contiguous) and lack of hotel rooms nearby.
Currently, approximately 300,000 people come to downtown every day.
Mass transit usage will be encouraged.
Non convention events will mostly occur on weekends. AEG is doing a full EIR, and they are already 8 months into it.
It is due to be completed by May 2012.
There will be 32,000 parking spaces within a 15 minute walk.
In addition to parking, a subway stop will be at 7th Street and we now have the Pico light rail.
Tickets will also encourage use of Union Station by providing ground transportation to and from the Stadium at a reduced cost or for free. AEG is environmentally committed and the stadium will be LEED certified. LA must continue to own the convention center.
The city bonds will be repaid by Farmers Field for over 30 years.
The City will have new parking taxes and new sales taxes.
Some revenue will go to the General Fund and only to pay for the bonds.
There will be a fair market lease for the land for the life of the bonds until they are repaid. AEG will issue an annual letter of credit for each year to cover any short fall for the bonds. AEG cares about Los Angeles. QUESTIONS.
Janet Turner - Has a professional football team been secured?
Answer Tim Leiweke (TL) - Not yet, but many teams are interested in coming to such a large market that hasn’t had a pro team for almost 20 years.
They are also willing to buy a piece of a team (up to 50%).
Jack Allen - An event at the Convention Center brought gridlock to downtown LA yesterday.
The downtown area cannot handle any more traffic.
How do you intend to deal with this?
Answer TL - He has experienced the gridlock.
There have been events (i.e. the auto show) at the Convention Center on weekends and traffic moved smoothly.
Light rail is a must.
Most people will be within the Convention Center area who are attending the event.
This will bring jobs to the City and make Los Angeles a leader in the convention business.
Janet Turner - What about the hidden costs, such as the fire and police?
Answer - They currently pay for the police officers for events and also for firemen.
This also includes traffic police.
Janet - This is for onsite protection, but outside the arena area, the City of LA is responsible.
Answer TL - Chief Becket endorses this plan and they reimburse the police for any tactical alerts.
In addition, Farmers Field seat tax will go to pay down the bonds creating an estimated $45 million in new taxes.
The sports facility will create new taxes.
Reza Akef - Mass transit does not work today in LA.
Will you take the lead and create a new one?
Answer TL - The leaders of LA need to make the decision and take the lead for public transportation.
Quentin Fleming - Several research studies have conclusively demonstrated that government subsidies never pay for themselves.
How do you prevent LA from becoming a victim of their team like other cities? TL - He said he was familiar with the study from the University of Chicago, but he has academics who say the opposite.
Quentin responded that he was referring to work from Harvard, Rutgers and elsewhere - wasn’t familiar with the Chicago study.
He went on to say that he would be a supporter if he could conclusively demonstrate that his project would somehow be different from all the others. TL - Sports teams and sports facilities do not bring in money to cities.
The $55 million to buy the land will return $100 million from seat taxes.
This will also create new development and therefore new tax revenue.
In the history of the NFL, this is the best deal for the city. AEG is making the bond guarantee and it is a $6 billion company.
They have already obtained naming rights and are taking the risk on the building of the stadium.
Chris Spitz - Are you going to do a full EIR? TL - They are currently doing an EIR and have had the first public comments.
The second phase of the EIR should be ready in October for public comments.
They need protection from third party lawsuits and CEQA.
Jamie Schloss - What is the cost of the project and what is the revenue from Farmer’s naming rights contract?
Is it around the $900 million number? TL - Farmers actually contracted to pay AEG $700 million for stadium naming rights (naming the stadium Farmer’s Field as the presentation said).
The contract is for twenty years and so net present value of the contract was more like $300 million.
Jamie Schloss - How much of that money went to the city? TL - Rosendahl has asked the same question.
The city gets none of the money, unless it is a profit participant.
Jamie - Since the city is putting up the land, doesn’t that make them a participant TL - AEG would pay $54 million for its EIR study.
Jamie - Pointed out that it seemed like they had already received more than that from Farmers. TL - Did not deny the implication, but changed the subject .
Some banter ensued.
Jamie - How much would the city receive as lease payment for the ground lease? TL - That is being negotiated and AEG would pay Fair Market Value.
No specific numbers can be discussed, as it is still being negotiated.
How do you intend to cover any shortfall in both the principle and interest?
Will events in Farmers Stadium compete with the convention center? TL -.No events in Farmers Field should compete with the convention center.
They are already spending $15 million for design project.
The seat tax amount will be displayed on the ticket, just as it is today at the Staples Center.
Janet Turner - Will LA participate in any profits? TL - If they take the risks then they will be included in the revenue streams.
10.
1. [Continuation] ELECTION RESULTS. CHAIR JANET TURNER VICE CHAIR HALDIS TOPPEL SECRETARY JENNIFER MALARET TREASURER TED MACKIE
10.
3.
Expansion of LAX.
Tom Chasney with the Alliance for a Regional Solution to Airport Congestion (ARSAC) and Diego Alvarez of Los Angeles World Airport (LAWA).
Janet Turner said the issue is to hold LAX expansion down to the current footprint. WRAC (Westside Regional Alliance of Councils) is asking us to help in this issue.
Councilman Rosendahl is in favor of modernization, but not for expansion.
He believes that it is not good use of our money at this time. LUC (Land Use Committee) has met and discussed this issue and supports the motion of LAX Master Plan Elements.
Tom Chasney of Alliance for Regional Solution to Airport Congestion spoke on behalf of ARSAC supporting the community immediately affected by LAX.
Their goal is to maintain the quality of life.
Airport traffic will continue to grow; LAX has 75% of all air traffic in our region.
It would be cost effective to spread around the air traffic.
On safety, the LALA study was done to show what would happen if you moved the runway north.
Conclusion was that no significant safety reduced. 70% of the incursions occurred on the south side of the airport.
More can be done to improve safety for instance, installing runway status lights and other collision avoidance systems, have more controllers on the job, improve the taxiways.
Improvements at LAX can also include modernization to the terminals and bringing the Green Line into the airport.
There are geographical problems that need to be addressed if the runway is moved.
Diego Alvarez of LALA said that they were doing a study to address the controversial parts of the Master Plan.
The Master Plan is addressing the capacity of the Airport.
Five studies have looked at ways to improve safety.
The FAA slows traffic at LAX to make it safe.
They are considering the impacts of the various alternatives for the Master Plan such as moving the runway 250 feet north or not.
Richard Cohen - It is commendable what WRAC is doing, but we must focus on Pacific Palisades and would abstain from this issue.
Janet Turner - LUC has put a lot of effort into this issue and the motion and needs our support.
Chris Spitz - The motion addresses concerns about the proposal.
Councilman Rosendahl supports this motion and needs our support.
Jack Allen - Wants to see an EIR before he supports this.
Janet Turner considered tabling this until more information is obtained, but since no motion is on the table there is no need for such an action.
Chris Spitz moved and Stuart Muller seconds the following motion: "LAX MASTER PLAN ELEMENTS WHEREAS, the Pacific Palisades Community Council (“PPCC”) is a member of the Westside Regional Alliance of Councils (“WRAC). WRAC is comprised of thirteen neighborhood and community council members from the Westside of Los Angeles. WHEREAS, the leadership of WRAC has proffered a motion on the LAX Master Plan Elements, including future operations and expansion of the Los Angeles International Airport (“LAX”). LAX enhances tourism and economic growth in the entire region. WRAC supports the improvement of safety, security and convenience at LAX but has concerns which should be addressed by the LAX Master Plan update process, including appropriate EIR scrutiny. NOW THEREFORE BE IT RESOLVED, PPCC supports the efforts of WRAC and recommends that any revised LAX Master Plan Elements should: