Aug. 9 (Bloomberg) -- The Los Angeles City Council voted to pursue a $1.4 billion football stadium and convention center remodeling project with Anschutz Entertainment Group Inc.
The entertainment company, controlled by Denver billionaire Philip Anschutz, has asked the city to sell $275 million in municipal bonds to tear down part of the existing center, where the stadium will be put, and build an addition.
Construction would not begin until the project passes state environmental reviews and Anschutz finds a National Football League team to play in the stadium.
City Administrative Officer Miguel Santana said in a July 25 interview that terms of the deal changed since Los Angeles first began negotiating with Anschutz earlier this year. The developer agreed to reduce the amount of debt to be issued and to back bond payments with new taxes on its current downtown properties including L.A. Live, a hotel and entertainment complex Anschutz opened in 2008.
Los Angeles has $417 million in debt outstanding on its existing convention center buildings, which cost the city $14 million annually following promises 26 years ago the facility would be self-sufficient.
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