LA City Council approves $54 million proposal to modernize and expand convention center

LOS ANGELES (CNS) — The Los Angeles City Council on Wednesday will move forward with a $54 million proposal for initial work to modernize and expand the downtown convention center in preparation for the 2028 Olympic Games.

The council voted 13-1 to allocate the money and move forward with preliminary construction, but several members expressed concern about the tight schedule the city would face to complete the project.

The preparatory work will help the city determine whether the renovation can actually be completed on time. If the results show that it cannot, elected leaders can decide to halt the project.

Councillor Marqueece Harris-Dawson was absent during the vote.

Councilman Curren Price, who represents the Ninth District, which includes the South LA and convention center neighborhoods, said the renovation of the complex has been in the works for a decade.

“We've seen some real challenges in terms of expansion and motivation, but I think we're ready to move forward at this point,” Price said. “Not only will LA have a world-class convention center that we can be proud of, just in time for the world stage, but it will create thousands of jobs — permanent and temporary jobs.”

Councilwoman Monica Rodriguez, the lone vote against the plan, reiterated her concerns about the plan, particularly the planning, the nearly $100 million cost due to compound interest and the lack of hotel rooms in the area surrounding the complex.

“Those things are falling short right now and that's why I can't support this,” Rodriguez said.

In a joint report, Sharon Tso, the city's chief legislative analyst, and Matt Szabo, chief administrative officer, estimated the project would cost $4.7 billion over 30 years, including the debt incurred.

The proposal includes demolition of none of the existing facilities and new construction connecting several buildings, adding 17,500 square meters of exhibition space, 5,100 square meters of meeting space and 8,800 square meters of multifunctional space.

Szabo said that if the project is approved, the expansion would create nearly 7,400 new jobs during construction, 2,100 new ongoing jobs and bring in half a million additional visitors. Officials also said the project would generate $165 million in new spending each year and would generate about $570 million for the city’s general fund over 30 years from business, sales, parking and hotel taxes, as well as advertising revenue generated by digital signs.

According to Szabo, the new revenue would reduce costs for the city to about $43 million a year.

If the convention center project is feasible, the city would pay for construction, but the work would be done through a public-private partnership with Anschutz Entertainment Group, the center's operator, and development company Plenary Group.

“We believe that if you want to complete construction by March 2028, or perhaps sooner, this is the only option,” Tso said earlier.

The convention center will host boxing, fencing, taekwondo and table tennis events during the 2028 Summer Olympics.

The council's Tourism and Trade Committee, as well as the Budget, Finance and Innovation Committee, approved the proposal earlier in June.

Business leaders and some unions have urged city officials to go ahead with the congressional expansion.

Nella McOsker, president and CEO of the Central City Association, celebrated the council's decision Tuesday, describing the expansion as a “generational project” that will boost local and regional economic growth.

“We are grateful to the City Council for making the right decision to move forward with the project. The business community, unions and civic community stand ready to help meet this ambitious but necessary timeline,” McOsker said in a statement.