By Jaboner Jackson 8 a.m . | While national commercial and industrial real estate markets continue to experience the same doldrums affecting the U.S. housing market, private development surrounding AEG'S LA Live complex in the South Park neighborhood of downtown Los Angeles continues to thrive. Last month, footballphds.com discussed the addition of two Marriott hotel complexes to the area immediately adjacent to LA Live, and last year, we evaluated how AB 900 and SB 292 paved the way for continued private development. So despite the dismantling of the Los Angeles Community Redevelopment Agency (CRA/LA) by Governor Jerry Brown, multi-million dollar development around the planned home of AEG's downtown Los Angeles football stadium, Farmers Field, continues.
By Jaboner Jackson 8 a.m. | As reported first by the The City Maven, two Marriott properties scheduled for groundbreaking across from LA Live and the JW Marriott-Ritz Carlton complex received unanimous approval Wednesday by the Los Angeles City Council for tax breaks. The vote allowed hotel developer Williams and Dame to keep half of the hotel tax revenues for the two planned Marriott properties. The development remains a bet by AEG and its strategic partners on the eventual expansion of the Los Angeles Convention Center and construction of Farmers Field.
By Jaboner Jackson 8 a.m. | Addendum to a Three Part Series | Over the past couple of weeks, we examined the only thing that matters when it comes to building an NFL stadium in Los Angeles—financing. In our widely circulated pieces, we reviewed how to perform a valuation of an NFL franchise in Part 1, gave real world valuations for the San Diego Chargers, San Francisco 49ers, and Oakland Raiders in Part 2, and investigated financing scenarios for Farmers Field and LA Stadium in Part 3. Over the past couple of weeks, I have received many questions regarding these issues. Today, I explore the answers to a few of the more pressing ones. Since many of the questions are of a technical nature, I will provide background information whenever possible.
By Jaboner Jackson 8 am | Part 3 of 3 | Forget political issues, location, and the benefits and drawbacks of urban versus suburban stadiums—the only element that matters when it comes to building a stadium to house an NFL team in Los Angeles is financing. Financing refers to the raising of monies to pay for all aspects of stadium design and construction. The reason why the Raiders left Los Angeles after the 1994 season was financing—the Los Angeles Memorial Sports Commission did not have the money to renovate the Los Angeles Memorial Coliseum. Two weeks ago, I reviewed financing an NFL stadium in Los Angeles by examining how real life valuation of NFL franchises is determined. Last week, I explored NFL stadium financing in Los Angeles by giving real world valuations for the three NFL teams in California, the San Diego Chargers, San Francisco 49ers, and Oakland Raiders. Today, I take a look at how both AEG and Majestic Realty are battling it out finance an NFL stadium.
By Jaboner Jackson 8 am | This week, I have been delving deeper into Majestic Realty’s planned NFL stadium in City of Industry, Los Angeles Stadium. Despite AEG’s push for Farmers Field, Majestic remains focused on convincing the NFL that Los Angeles Stadium is the right stadium for the league’s return to Los Angeles. On Tuesday, I reviewed the company behind LA Stadium, and yesterday I examined the suburban location of the project. Today, I compare LA Stadium to AEG’s planned downtown Los Angeles stadium, Famers Field, which we have already covered extensively on this site.
By Jaboner Jackson 8 am| At the NFL’s league meeting next week, current NFL owners are slated to hear about updates concerning the two stadium projects in Los Angeles, Farmers Field and Los Angeles Stadium. Having already covered the AEG project extensively, I have begun to examine Majestic Realty’s planned stadium in City of Industry, tentatively called Los Angeles Stadium or LA Stadium for short. Majestic has been working on LA Stadium since 2007 and has been shovel ready since 2009, when Governor Arnold Schwarzenegger signed a California Environmental Quality Act (CEQA) exemption for the stadium. Despite AEG’s push for Farmers Field, Majestic remains focused on convincing the NFL that Los Angeles Stadium is the right stadium for the league’s return to Los Angeles. I recently caught up with Taylor Talt, Majestic Realty’s Project Manger for Los Angeles Stadium, to explore the planned stadium in full. Yesterday, I reviewed the company behind LA Stadium, and today, I turn my attention to the project itself.
By Jaboner Jackson 8 am | With Governor Jerry Brown set to sign SB 292 into law today, Farmers Field has taken its final step to becoming a reality. Since AEG has already secured the San Diego Chargers as its anchor tenant, Environmental Impact Report protection was the only remaining hurdle for returning the NFL to Los Angeles. At the heart of SB 292 is the streamlining of litigation regarding the EIR, which we have covered extensively on this site. But also present in SB 292 is language stating that in exchange for litigation protection, AEG must achieve carbon neutrality regarding private automobile trips to the stadium. Contrary to popular perception, there is no specific language in SB 292 that states that Farmers Field as a complete entity—resource utilization, waste creation, and construction considerations—must be carbon neutral. Specifically, SB 292 states:
Achieve carbon neutrality by reducing to zero the net emissions of greenhouse gases, as defined in subdivision (g) of Section 38505 of the Health and Safety Code, from private automobile trips to the stadium.