The funds, which would come from an increase in convention center bookings, hotel room sales, and other economic activity, would provide much needed relief to strained budgets, once the two structures were open to business in 2016. In fact, the two projects could double the total number of hotel rooms sold per year, up to 551,000. While that would still leave Los Angeles lagging behind San Diego and San Francisco, the transient occupancy taxes wouldn’t be turned away.
But demolition and construction of the new wing of the convention center could cost as much as $290 million, a substantial barrier to an already cash-strapped city.
From the Los Angeles Times:
Construction of a $1-billion NFL stadium and a new wing of the Convention Center in downtown Los Angeles would dramatically increase the number of convention bookings while generating $22 million annually for the city, according to the findings of two reports commissioned by the project’s developer.
One study contends the two projects would generate $41 million in tax revenue annually for an array of government agencies, including the state, school district and Metropolitan Transportation Authority, during their first full year in operation in 2016.
A second consultant said he found that major convention bookings would jump from 24 in 2012 to 38 in 2016 if the two facilities were completed.
Read the full article here.