Arena Deal Gets Final Council Approval
Construction on the new downtown basketball and hockey arena could begin in January, developers say, after a 12-1 Los Angeles City Council vote Tuesday approving final development agreements on the $300-million facility.
The council action paves the way for developers to secure financing and begin preliminary work on the project. The vote, which covered environmental and financial agreements, was nearly unanimous, with Councilman Nate Holden dissenting and Councilwoman Jackie Goldberg abstaining.
John Semcken, vice president of the L.A. Arena Co., said a reported $100-million corporate sponsorship deal with office supplies superstore Staples has yet to be finalized.
Semcken said an announcement about corporate backing could come before Thanksgiving.
Council members had said corporate advertising would help developers Philip Anschutz and Edward Roski repay the city for $58 million in bonds.
Under the terms approved Tuesday, the developers will receive $12 million from the Community Redevelopment Agency, mostly to be used to acquire land for parking lots. Because the agency does not have the $12 million in its reserves, the developers said they will put up that money and the agency will reimburse them with interest. Holden criticized that part of the deal as “a gift of public funds.”
The developers hope to open the arena in late 1999.
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