AB 900 is California legislation passed in late 2011 that provides streamlining of CEQA for LEED silver certified infill site projects costing greater than $100 million. AB 900 was passed in conjunction with SB 292. AEG spearheaded the writing of this legislation in Sacramento.
AEG is the multi-national sports and entertainment company owned by Philip Anschutz and run by Tim Leiweke. AEG is seeking to return professional football to Los Angeles through construction of Farmers Field. Locally, AEG owns Staples Center, LA Live, The Home Depot Center, and the Los Angeles Kings.
AEG Live is the division of AEG that deals with live music and entertainment productions. AEG Live is the world's second largest live music company behind Live Nation Entertainment.
AEG Real Estate Effect denotes the impact that AEG's land developments have had on the pricing of commercial and residential properties in the South Park neighborhood of downtown Los Angeles. Valuations in South Park for lots and condominiums have steadily risen during the U.S. real estate slump due to anticipated construction of Farmers Field and Pico Hall.
Cash Financing refers to using cash to finance stadium construction.
CEQA is the California Environmental Quality Act, a statute passed in 1970. CEQA requires state and local agencies to follow a series analysis and disclosure to mitigate the impact major real estate developments will have on the surrounding environment. EIRs are submitted by developers to satisfy CEQA requirements.
Debt Financing refers to using construction loans and municipal bonds to finance stadium construction. This is the most important part of stadium financing and also the most complex.
Development and Disposition Agreements (DDA) are legally binding contracts between stadium developers and cities, counties, and states for the construction and timeframe of new stadiums. The DDA is the final step before breaking ground on a stadium project.
Environmental Impact Report (EIR) refers to a report that developers must submit to a city in advance of breaking ground on large scale development projects. The EIR is submitted in accordance with CEQA and is open to public discussion. Majestic Realty completed its EIR for LA Stadium 2009. AEG's EIR is pending for summer 2012.
Equity Financing refers to selling ownership in a stadium to help finance stadium construction.
Farmers Field is AEG's planned downtown Los Angeles football stadium that will be located on the current site of West Hall of the Los Angeles Convention Center. The San Diego Chargers are the clear frontrunner to be the anchor tenant for Farmers Field.
G3 Financing refers to the NFL's now defunct low interest loan program for stadium construction. G3 financing helped build MetLife Stadium, Cowboys Stadium, and Lucas Oil Stadium, to name a few. G3 funds were depleted during the last Collective Bargaining Agreement.
G4 Financing refers to the NFL's low interest loan program for stadium construction and renovation. G4 financing allows up to $200 million in loans to an NFL team to help finance a new stadium and up to $250 for stadium renovation. G4 refers directly to NFL Resolution G-4, which was passed by the NFL owners in December 2011. G4 financing had been referred to by footballphds.com as "Son of G3" financing prior to passing of Resolution G-4. The San Francisco 49ers have been the first recipient of G4 financing for Santa Clara Stadium.
Grand Crossing refers to the 600-acre complex in City of Industry that Majestic Realty seeks to build in conjunction with LA Stadium. The complex will contain entertainment, dining, and shopping options.
Investment Banks finance the debt portion stadium construction for both NFL teams and municipalities. The most successful investment bank for new stadium financing is Goldman Sachs, which brokered the debt deal for Santa Clara Stadium and is working with the San Diego Chargers on a planned East Village Stadium in San Diego.
LA Live is AEG's sports and entertainment complex in the South Park neighborhood of downtown Los Angeles.
Los Angeles Stadium (LA Stadium) is Majestic Realty's planned football stadium in City of Industry. LA Stadium has been shovel-ready since 2009. The Oakland Raiders are the clear frontrunner to be the anchor tenant for LA Stadium.
Majestic Realty is the nation's largest private industrial developer. Majestic is spearheading construction of a planned football stadium in City of Industry, tentatively called Los Angeles Stadium at Grand Crossing.
Memorandum of Understandings (MOU) refer to non-binding legal agreements between stadium developers and cities, counties, and states. The MOU is a significant milestone in new stadium construction. It details the general principles of stadium construction. It precedes a DDA.
Municipal Bonds are debt issued by cities to finance projects, including football stadiums. Investment banks issue this debt on behalf of cities to investors. Investors favor municipal bonds because they are tax-free investment vehicles.
Personal Seat Licenses (PSLs) are used to finance new stadiums. PSLs are sold to fans to secure the right to buy season tickets for a certain seat for a specified period of time, usually around 25 years.
Pico Hall is the planned expansion to the Los Angeles Convention Center. The expansion is predicated on the construction of Farmers Field. Populous is spearheading the design of Pico Hall. The convention center expansion will cost $275 million which will be financed through a series of municipal bonds.
SB 292 is California legislation passed in late 2011 that provides AEG with a streamlined CEQA review for Farmers Field. Under SB 292, all litigation related to the environmental impact of Farmers Field will be expedited to 175 days.
South Park is the downtown Los Angeles neighborhood in which AEG's LA Live, Staples Center, and planned Farmers Field is contained.
Stadium Naming Rights refer to the branding of a stadium by a company. Farmers Insurance signed a $700+ million contract to name AEG's planned downtown Los Angeles stadium "Farmers Field." MetLife Insurance paid $400 million to name the New Meadowlands Stadium "MetLife Stadium." Naming rights is an important way to finance new stadium construction.
West Hall is the old wing of the Los Angeles Convention Center. The West Hall will be razed for construction of Farmers Field.