A Los Angeles City Council committee on Tuesday backed an effort to rebuild the downtown convention center ahead of the 2028 Olympics, while city leaders acknowledged an ambitious timeline for completing the project.
The council’s Business, Travel and Tourism Committee voted to spend up to $54.4 million for pre-construction work at the old city-owned convention center, a proposal that will now go to the full City Council for a vote.
The 2028 Olympics were described by supporters as financially prudent because no large venues needed to be built. But with table tennis and other events planned at the convention center, city leaders want to use the Games as an inspiration to jumpstart construction, which could ultimately cost billions of dollars.
Over the past decade, various plans have been proposed to modernise the centre, which opened in 1971, but they have not moved forward.
Business and labor leaders at Tuesday’s meeting supported the project, arguing it would help the economy, create jobs and revitalize the city.
Nella McOsker, president of the Central City Association, a downtown business group, told the five-member committee that it was “a challenging moment for the city and a challenging decision, but certainly the right decision.”
If the convention center is expanded, the city would cover the cost of construction, but the work would be done through a private-public partnership with Anschutz Entertainment Group, the company that runs the convention center, and Plenary Group, the development company.
In the short term, the city will spend up to $54.4 million on pre-construction design work. The City Council is expected to vote on a final work agreement for the entire project with AEG and the Plenary Group later this year.
However, officials said Tuesday that if it becomes apparent during pre-construction work that the final completion timeline isn’t feasible, the city could put the project on hold.
Chief Legislative Analyst Sharon Tso warned council members at the meeting that completing the project before the Olympics would be challenging, describing the schedule as “very fast-paced.”
“There’s no room for error in this time frame,” he said.
This redesign would address the center’s lack of contiguous space, which city officials consider a major problem in attracting convention visitors. None of the existing facilities would be demolished under the proposal, and new construction would connect the convention center’s buildings, adding 190,000 square feet of additional exhibit hall space, 55,000 square feet of additional meeting room space, and 95,000 square feet of multipurpose space.
A report released this month by Tso and Chief Administrative Officer Matt Szabo estimated the city would lose $4.78 billion over a 30-year period, including debt on all loans.
According to the report, the renovated facility would generate new revenue, including money from additional parking and digital signs. When these revenue sources are included, the city’s costs would drop to about $43 million per year, according to the report.
Tso and Szabo’s report says the Los Angeles Convention Center, or LACC, “must be in a fully functional state” by March 2028 so it can be used for the Games, which begin in July of that year.
The report states that if this goal is not met, “the city will risk having to host these events outside the region and possibly outside of Los Angeles, and in turn, forgo the associated revenue and benefits generated by the city and local businesses.”
“I think we understand the need to get this done by March 2028, if not sooner,” said Council Member Tracy Park, who chairs the Business, Travel and Tourism Committee.
In 2012, city leaders Plan to demolish convention center’s West Hall supported to make way for a $1.2 billion football stadium, but developer AEG failed to attract an NFL team.
Councilmember Karen Price, who has represented the area around the convention center since 2013, told the committee at Tuesday’s meeting that the city “has been discussing expanding the convention center almost the entire time I’ve been on this council.”
“I am happy to see this project moving forward,” he said. “Like many people, I had some doubts, especially about whether we would be able to complete it on time, but I am confident we will get it done.”
In addition to stressing the tight timeline, Szabo and Tso warned the council that the city already faces deficits over the next few years, including a shortfall of about $260 million.
Speaking at Tuesday’s meeting, Council Member Hugo Soto-Martinez said he is “nervous” about making “big decisions” regarding the budget, as the city has recently cut several vacant positions.
“We have no other way to get out of this,” he said. “We’ve cut vacancies. And now if something happens, revenues go down or expenses go up, we’re going to be in a really tough spot.”
City leaders have also said city services will remain steady in the upcoming year due to the reduced budget.
City Comptroller Kenneth Mejia, who has criticized budget decisions, declined to comment Tuesday on the convention center proposal.
