L.A. Offers Stadium Plan

Los Angeles officials Monday offered a financing plan for a new football stadium downtown that includes $275 million of tax-exempt bonds.

A new hall for the convention center at the site next to the Staples Center would be funded with $195 million of debt backed by lease and tax revenues, while $80 million would come from Mello-Roos bonds, according to a draft agreement.

The proposed owner of the new stadium, Anschutz Entertainment Group, would pay 73% of the bond payments and the rest would come from tax revenue generated by an events center.

AEG is pushing the plan to build a stadium and events center. The company has put forward a proposal to build a 1.7-million-square-foot facility that would replace the West Hall of the Los Angeles Convention Center, and sit next to Anschutz’s own Staples Center.

The bonds would be guaranteed by letters of credit. AEG would pledge to cover any shortfall in revenues to pay debt service.

The project will be on hold until a National Football League team signs a contract to use the facility and financing is in place.

Los Angeles still has $445 million of outstanding debt tied to three series of lease revenue bonds sold to fund the convention center. The final payment on the paper is due 2023

Farmers Insurance Group has agreed to a $700 million, 30-year deal with AEG to name the proposed 68,000-seat stadium Farmers Field.

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