Public Hearings on City Financing of NFL Stadium Kick Off Wednesday | NBC 7 San Diego

Public Hearings on City Financing of NFL Stadium Kick Off Wednesday

The proposal on the table calls for $195 million in city bonds

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    NEWSLETTERS

    (Published Friday, July 22, 2011)

    After three months of closed door meetings on a $1.2 billion financing plan for a proposed NFL stadium, it's time to let the sun shine in.

    Anyone with an opinion on how the city plans to front the cash for the stadium has a chance to speak up at a public hearing scheduled for Wednesday evening.

    Full Text: Draft Memorandum of Understanding

    The public can provide input on the $1.2 billion financing plan for Anschutz Entertainment Group to  build an NFL football stadium, a new convention hall and parking structures. The structures would be on city-owned land downtown.

    The meeting is scheduled for 5:30 p.m. at LA City Hall. Another meeting is scheduled for Thursday in Van Nuys.

    Wednesday's city committee meeting marks the first public heaing regarding a proposed draft memorandum of understanding (MOU), which was released Monday.

    The MOU, drafted after three months of closed-door meetings, anticipates an NFL team in LA by 2016.

    A few other details in the proposal:

    • The city would issue $195 million in bonds that would be backed by the city's general fund, which pays for basic city services.
    • City leaders said the plan would require no public money for the stadium.
    • The debt would be repaid by rent AEG would pay to use the  city's land, a property tax and one-time taxes on construction of the new  project.
    • AEG would pay for any shortfalls in the bond payments caused by less-than-anticipated revenues from those taxes and fees.  
    • The remaining cost of the New Hall at the Convention Center would be funded by an $80 million  bond backed by AEG's Staples Center and L.A. Live.
    • If the developer failed to  make those bond payments, the city could foreclose on those properties.
    • An NFL team must sign at least a 30-year commitment to play in the stadium.

    That's the framework for a negotiations expected to occur during the next year, if the mayor and council okay the proposal. AEG President Tim Leiweke said he's confident that will happen.