Weak Luxury Condo Sales May Tilt Talks Over AEG Stadium Plan

LOS ANGELES (CBS) — A plan to raise cash for a new state-of-the-art stadium in downtown Los Angeles by selling luxury condominiums may be in trouble.

AEG, the firm behind the proposed stadium, expected to generate funds for the facility by selling 224 condos ranging in price from $850,000 to up to $9 million.

KNX 1070’s Pete Demetriou reports that even despite a deal to sell some units to AEG officials themselves, only 32 units in all have been sold in the deal under the Ritz Carlton banner.

A pair of economic reports from AEG will likely reaffirm the company’s confidence in the project, but questions remain surrounding its viability — including how much influence the city will have in future negotiations.

The city is being asked to issue $300 million in bonds for the demolition and relocation of the convention center to make way for the stadium.


One Comment

  1. ginny says:

    Here we go, this was supposed to be a ‘no cost’ to the residents project and now there is a discussion of the City floating a 300 million dollar bond
    (first time this has been mentioned). I don’t think so. Let this whole idea fade away, we can’t support the city now, why take on more debt. Insanity Reigns.

  2. Mike says:

    Did you see how much money came in from the Microsoft convention? 48 Million in 5 days! Why wouldn’t you want to improve the convention center, while attracting more visitors at the same time? Okay, it might cost some money now, but that’s how cities grow! I believe short-sighted, reactionary thinking is insane.

  3. James Mark says:

    Good Reporting Pete, the public needs to know everything. I personally know three folks that are suing AEG because they are tying to keep their deposits. Now I know why AEG is tyring to keep their money.. Its sad but be careful Angelenos, hold on to those wallets.

  4. Marco says:

    Let that traffic monstrocity be built in Irwindale. Get the fans away from innocent women and children.

  5. James Mark says:

    Mike, I agree with you that an investment of this magnitude would be a wonderful thing for Los Angeles.. The problem that we have now is that we need to make sure that we are not left holding the bill. We just got to make sure that we have legal protection to cover us in case that it does not go well. I would prefer my potholes to be filled and LAPD/LAFD response not to be affected.

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