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.