Aug 22, 2011
Last week, the Los Angeles City Council unanimously approved a 1.5-billion-dollar deal to develop a new downtown football stadium and a new convention center. Supporters of this deal claim that it will bring jobs to Los Angeles and huge tax revenue to the city. They say that 410 million dollars of new tax revenue will be generated over 30 years.
But, similar promises were made for the existing convention center buildings 26 years ago. The city still has 417 million dollars in outstanding debt from this 26-year-old deal.
This stadium and parking lots will be built on city property. Anschutz Entertainment Group, which got this development deal, proposed a $1-a-year lease for this city property. So the city will be handing over its property for free.
This deal will be another huge drain from the city budget like similar projects in the past. It’s only another scheme to provide another money channel for the rich.