City Council approves negotiation step for Los Angeles Convention Center modernization; key amendments pass

The Los Angeles City Council on Wednesday voted to advance negotiations on a phased modernization and expansion of the Los Angeles Convention Center, approving several amendments designed to reduce city risk and require more detailed cost and revenue work before a final project agreement is presented to the council.

The council authorized staff to continue negotiating a finalized project agreement and to seek a firm fixed price from the developer APCLA, while approving an amended set of conditions that require value engineering, revenue enhancements and stronger protections for the city’s general fund. Council members approved three amending motions (13A, 13C and 13E) and adopted the economic development committee report as amended. One amendment (13B) failed and another (13D) was withdrawn.

Why it matters: The modernization aims to expand continuous exhibition space and modernize facilities to attract the largest national and international conventions. Proponents say the project will create construction and permanent jobs and generate new revenue for city services; opponents warned of large long-term debt service and potential impacts on city services while the city faces a budget shortfall.

Councilmember Marquee Rodriguez, who led public advocacy for moving the project forward, framed the decision as a choice between “walking away” or “seizing global opportunities.” “I’m proud to rise today in strong support of the expansion and modernization of the convention center,” Rodriguez said during debate.

City financial staff told the council their current estimate would require issuing up to $2.2 billion in debt. The City Administrative Officer, Matt Szabo, said that under current assumptions that issuance would produce about $136 million in annual debt service beginning in fiscal 2028-29, and that operating revenues from the expanded center are projected at roughly $137 million a year. Szabo cautioned those figures are preliminary and that the final, firm fixed price and allocation of risks must be completed in the negotiated project agreement before the council issues debt.

Council actions and safeguards The council’s motions require city staff to pursue value engineering and revenue enhancement strategies so the project is as close to “cost neutral” to the general fund as possible. The approved language also requires staff to secure resolution of a planned digital signage program and related state approvals before recommending final debt issuance; administration staff said signage revenue is a critical component of the project’s affordability.

Several council members said they would not approve a final agreement that puts the 2028 Olympic venues at risk. The CAO and negotiators told the council they will include provisions to ensure the convention center campus is cleared well in advance of the Games and will pursue contractual incentives and liquidated damages to protect the city’s schedule.

Public comment and labor support Dozens of trade union representatives and downtown business and resident groups spoke during public comment in strong support of the expansion, saying the project would create thousands of construction and permanent jobs and bring more business to downtown L.A. Leslie Ridings of the Downtown Los Angeles Residents Association said, “Residents want the Los Angeles Convention Center expansion.” Labor leaders and apprenticeship programs described placements and hiring goals tied to project labor agreements, saying the project would create pathways to family-sustaining careers.

Next steps By a subsequent deadline the CAO and City departments must continue negotiations, seek a firm fixed price from APCLA and return to council with a final project agreement and financing recommendation. Council members passed motions requiring additional cost-reduction work and revenue-sourcing efforts during that window. The council’s final vote on issuing debt would come after staff returns with the negotiated agreement.

Votes at the meeting on the convention center item (13): amending motion 13E (Yaroslavsky et al.) passed (13 ayes, 2 no); 13C (Jurado/Yaroslavsky/Price) passed (14 ayes, 1 no); 13A (Park/Price) passed (15 ayes); 13B (Rodriguez/Padilla) failed; 13D was withdrawn. The economic development and jobs committee report as amended was adopted (14 ayes, 1 no).

Where this stands: The council authorized staff to finish negotiations and return with a final project agreement and financing plan before a July decision on debt issuance. The council attached multiple directives to reduce risk and increase revenue before final approval.