City Releases Tentative Funding Agreement On LA Stadium

LOS ANGELES (AP) — Nearly three-quarters of funding to relocate a convention center hall to accommodate a downtown Los Angeles NFL stadium would come from guaranteed payments to the city by developer AEG under a tentative plan released for comment.

The non-binding memorandum of understanding released by city officials Monday says 27 percent of the bond charges would be paid for with new tax revenue from the stadium. AEG would pay the city the rest through a ground-lease and other fees.

The agreement calls for the city to issue $275 million in tax-exempt bonds to pay for the new convention center hall.

AEG had previously said it wanted more tax revenue sources from the project to finance the bond issue.

The City Council plans a vote on the proposal after a series of hearings.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)


More From CBS Los Angeles

KNX 1070 Newsradio

Listen Live