Committee pauses Convention Center expansion as wildfire recovery strains city resources

The Economic Development and Jobs Committee on Jan. 31 accepted a recommendation from the City Administrative Officer and Chief Legislative Analyst to pause active work on the Los Angeles Convention Center expansion while the city updates cost estimates and assesses department staffing demands after recent wildfires.

The committee’s action came after hours of public comment from labor representatives, business groups and tourism officials urging the council to proceed. The pause is not a recommendation to abandon the project; staff will return in March with a range of short- and long-term options, including a city-run approach, continuing with the current APCLA arrangement, selecting an alternate developer, or shelving the project, officials said.

City Administrative Officer Matt Szabo told the committee that early-works work is largely complete but that completing a project agreement and securing a firm fixed construction price on the original timeline is no longer feasible. “We are recommending a pause at this moment, so that we can consider some options on how to proceed,” Szabo said. He said final approval would have needed to be considered by the full council and mayor by April to preserve a shot at completing construction before the 2028 Olympics, but that the wildfire recovery effort has constrained departmental capacity.

Chief Legislative Analyst Sharon Sow told the committee that initial indications suggest the previously targeted $1,400,000,000 construction estimate will be difficult to achieve and that the city has not yet received APCLA’s final pricing. “Initial indications are is that the $1,400,000,000 construction target, it’s going to be difficult to achieve,” Sow said. The CAO reported the council previously authorized $54 million for early works; staff said $33.5 million has been spent to date and that those design and site investigation products remain city property.

Speakers representing unions, business improvement districts and tourism said delay risks losing momentum and local jobs. “This is a shovel-ready project that will generate so much revenue,” Rich Sarian of the South Park Business Improvement District said during public comment. Kathleen Rawson, president and CEO of the Hollywood Partnership and a city tourism commissioner, said tourism dollars are needed for city recovery and urged the committee to keep the project moving.

Victor Reyes of VICA (Valley Industry and Commerce Association) provided specific project metrics cited during public comment, attributing to VICA a projection of roughly 90,000 square feet of new exhibit space, 55,000 square feet of meeting rooms and 95,000 square feet of multipurpose space; he also cited projections of about $165,000,000 in annual visitor spending and more than $1,200,000,000 in tax revenue over 30 years, figures he presented as VICA estimates.

Labor speakers repeatedly emphasized workforce readiness and local-hire commitments. Eddie Alvarez of the LA/Orange County Building Trades told the committee that the project labor agreement would target 50% Los Angeles residents on hiring: “Fifty percent of the people that are gonna be hired on this project have to be Los Angeles residents,” he said. Several union representatives said they have apprentices and journey-level workers prepared for construction jobs.

Committee members sought a clear options report. Council member Soto Martinez said completing the project before the Olympics is no longer feasible on the current timeline and asked staff to include, for each option, the timeline, expected staffing needs across departments and projected general-fund impacts. The CAO and CLA said they will provide a March report that includes a gap analysis of anticipated revenues and city costs, staffing implications, and short- and long-term choices, including whether to pursue the project in-house or with APCLA.

Votes at a glance: the committee voted earlier to continue items 1 and 9 and to move items 2–8 and 10–11 on consent (vote recorded as five ayes). Later the committee approved the CAO/CLA joint report (dated 01/31/2025) as amended and noted and filed the Department of Convention and Tourism Development report (dated 08/14/2024) by recorded vote (five ayes).

What’s next: staff will return in March with a report that the CAO and CLA said will present multiple options, cost updates and staffing assessments. The committee’s decision to pause is intended to allow departments taxed by wildfire recovery to complete the remaining technical, financing and agreement work before the council makes a final decision.