City Council approves phased modernization of Los Angeles Convention Center, with conditions

The Los Angeles City Council voted to advance a phased plan to modernize and expand the Los Angeles Convention Center, authorizing staff to complete negotiations and return with a final project agreement in July. The council adopted the economic development committee report with amendments after a lengthy public comment period and in-chamber debate, approving the motion as amended by a 14–1 vote.

The measure directs the City Administrative Officer and the Chief Legislative Analyst to finalize a project agreement with the developer and to seek a firm fixed price and other special conditions before the council considers issuing debt. It also approves interim financing requests needed to continue the current “early works” phase and requires the city to pursue actions that reduce the general-fund impact of the project.

The council’s action follows more than an hour of public testimony that overwhelmingly supported the expansion from unions, downtown residential groups and business leaders who said the project would create construction and permanent jobs and boost local tax receipts. Leslie Ridings of the Downtown Los Angeles Residents Association told the council, “Residents want the Los Angeles Convention Center expansion. It gives us what we want out of downtown.” Several union speakers described apprenticeship placements and long-term careers attributed to convention work.

City Administrative Officer Matt Szabo told councilmembers the fiscal picture would be presented in stages. “If we were to issue $2,200,000,000 we would have a $136,000,000 debt service payment that would begin in fiscal ’28–’29,” Szabo said, and added that the administration projects roughly $137 million in annual operating revenue tied to the project under current assumptions. He told the body the $2.2 billion debt figure and a separate $1.7 billion construction estimate are preliminary and that a final, firm fixed price would be returned to council in July if negotiations continue.

Councilmembers adopted a package of amendments intended to limit cost and risk to the city and to increase transparency. Amendment 13E — approved 13–2 — directs additional value engineering and reporting to bring the project “near cost neutral” with projected revenues. Amendment 13C — approved 14–1 — adds oversight and reporting requirements. An amendment that would have imposed stricter constraints on the negotiating team failed. The council also agreed to finance an additional $27.7 million to sustain the early-works effort while negotiations proceed; that amount would be rolled into project financing rather than drawn from the general fund immediately.

Councilwoman Tracy Park, who chaired the ad hoc committee on the issue and introduced key amendments, framed the vote as cautious but forward-looking. “This isn’t just about the convention center itself. It’s about showing Angelenos that we are committed to investing in our own residents, our workers, and our businesses in the future of this city,” Park said during debate.

The council instructed staff that resolving a planned digital-signage revenue stream is a necessary condition for final debt issuance. Multiple speakers and staff emphasized the signage issue: without state or federal resolution to allow the proposed freeway-facing signage, projected revenue would be reduced and the project’s affordability could be jeopardized. An outside speaker with long experience in signage law explained the state and federal statutes relevant to any change in signage policy and said legislative or executive action may be required.

The motion also preserves existing design work the city has paid for to date; staff told councilmembers that design materials developed under prior city contracts would remain city property if the project were stopped. Councilmembers and staff stressed that the council’s vote authorized continued negotiation — not final borrowing or construction — and that the final authorization to issue debt and proceed to construction would return to the council for a separate vote in July.

Looking ahead, the administration will return in July with a final project agreement, a firm fixed price from the developer, and documentation on signage, value engineering and the projected near-term general fund impact. The council’s action gives the negotiators direction to push risk to the developer where possible, to include incentives and liquidated damages tied to schedule, and to “value engineer” scope to protect the city’s fiscal position.

Votes and next steps: the council approved amendments 13E (passed), 13C (passed) and 13A (passed), while one amendment proposing more restrictive negotiation constraints failed and one was withdrawn. The committee report as amended was adopted 14–1; councilmembers directed staff to return with the finalized project agreement and a firm price in July for final approval.

Several downtown residents and business leaders said they expected the project to help revive downtown and support local small businesses. Union speakers highlighted placement numbers from local apprenticeship programs and said many workers would be hired under project labor agreements. Opponents in the chamber warned about long-term debt and potential general-fund impacts, urging tighter caps on city liability. The council’s package attempts to balance those concerns by moving forward with negotiation guardrails and reporting obligations.

The council’s July report must demonstrate a path to resolving the signage question, present the firm fixed price, detail value-engineering options, and show the expected general-fund impact for fiscal 2028–29 before the council considers issuing debt.