LOS ANGELES (CelebrityAccess MediaWire) — Los Angeles City Council agreed Friday to provide $177 million in subsidies to Anschutz Entertainment Group, who proposed to build a 55-story hotel and condominium project next to the Convention Center. AEG claims that the project will help make the city-owned center profitable.
The 1,200-room hotel project is a key element in AEG’s plans to build a $1 billion entertainment district surrounding the downtown Staples Center.
Many union leaders and competing hotel owners have opposed the project, calling it an unnecessary gift of city funds to a business, according to the Los Angeles Times.
The L.A. City Council unanimously approved a memorandum of understanding with AEG that calls for the hotel to get all of the estimated $110- to $140-million in hotel bed tax revenue it would generate during its first 20 years. In addition, AEG will receive $22 million in city loans, $10 million in public improvements, and be exempt from $5 million in building fees.
The hotel, which will include 100 luxury condominiums on the top floor and be operated by Hilton, will have to be built before AEG can proceed with the adjacent LA Live, a 27-acre entertainment district that will include a 7,000-seat live theater, nightclubs, restaurants and movie theaters. –by CelebrityAccess Staff Writers