If the City of Los Angeles decides to tackle the overhaul of the L.A. Convention Center by itself, it will be $250 million more expensive than the initial $470 million quote, a new report found. However, there are options. The report, from City Administrative Officer Miguel Santana, offers an alternative to paying $720 million for renovations on the outdated center at 1201 South Figueroa Street: a $1 billion private partnership that would result in greater savings down the road. Under this option, a private developer would design and finance the property and develop it into a mixed-use complex that includes housing, retail and a hotel, L.A. Downtown News reported. … A public-private partnership isn’t unprecedented for L.A. The city has long had a relationship with AEG. The firm currently runs the convention center alongside the city authorities. But this connection may be strained, as the entertainment firm announced last month it was pulling out of the development of a 755-room hotel on Olympic Boulevard next to the Convention Center because of competition form the city’s own on-site hotel.
L.A. budget chief suggests privatizing Convention Center
Source: Kate Linthicum and David Zahniser, Los Angeles Times, August 6, 2012
After years of pushing for the privatization of more city services, Los Angeles’ top budget official took his crusade to pare down city government a step further Monday with a recommendation that lawmakers turn over management of the Convention Center to a private firm. … Lowell Goodman, a spokesman for Service Employees International Union Local 721, said his group opposes the proposal because it would replace city staff with cheaper workers.