Committee approves phased plan to advance Los Angeles Convention Center expansion, conditions signage approval

The Economic Development and Jobs Committee voted unanimously Friday to reengage contract negotiations for a phased expansion and modernization of the Los Angeles Convention Center, but conditioned further action on securing state and Caltrans approval for freeway-facing signage and on department vetting of the phased delivery plan.

The committee approved the chair’s motion — moved by Chair Price and carried 5–0 — instructing the City Administrative Officer to continue negotiations with AEG Plenary Conventions LA under a phased construction approach, require a report from the Fire Department, Bureau of Engineering, Bureau of Contract Administration and LADWP within 30 days on feasibility of the phased delivery, and make signage approval a precondition for final project agreement recommendation to council.

The vote advances a project estimated in the joint CAO/CLA report to cost about $2.2 billion in total: roughly $1.7 billion in construction, $84–$100 million in preconstruction and early works costs, and about $400 million in city-retained costs and contingencies. The CAO and Chief Legislative Analyst told the committee the city would need to issue debt and would not begin debt service until the expansion was fully operational in fiscal 2028–29.

Councilman Tim McCosker, speaking near the start of the meeting, urged the committee to give “direction to staff to do all three of those things” — reduce construction and operations costs and maximize revenue — so that the project would lower financing costs. “If we get out of the convention business, we might as well get out of the Downtown LA business,” McCosker said.

Max Reyes, senior director of economic policy for Mayor Karen Bass, told the committee the mayor “reaffirms your strong support for the convention center expansion and modernization project,” arguing the project would support citywide jobs and small businesses that serve conventions. “Moving this exciting modernization expansion forward, we’ll send a clear message from City Hall to the private sector that LA is open for business,” Reyes said.

City and industry witnesses described the project as an economic engine but flagged budget and legal risks. John Liu, executive director of the city tourism department, told the committee the expansion could “double the size of the convention center and more than double the revenue that the convention center will generate,” citing higher rents, more food-and-beverage and parking revenue and a proposed signage program. Adam Burke, president and CEO of Los Angeles Tourism, said independent modeling estimates a phased expansion would produce about 5 million incremental attendees over five years, more than $3.7 billion in additional local business sales and roughly 11,000 new jobs in the first five years under the phased approach.

CAO Matt Sabo and CLA staff outlined the report’s fiscal assumptions and risks. The CAO/CLA analysis estimated 9,000 construction jobs during the build and about 2,200 new permanent jobs afterward. The joint report projected roughly 500,000 additional attendee-days over 10 years and an estimated $543 million in additional tax revenue over 30 years. The city’s mid-range annual revenue estimate for the expanded center (events, parking and signage) was presented at about $137 million; the report’s authors said that would yield a net general-fund cost of roughly $45 million per year after debt service and operating costs under the mid-range signage scenario.

Signage revenue was the committee’s central uncertainty. The CAO and CLA reported signage could generate a mid-range $60 million annually, an upside of $88 million if all approvals are received, and a downside as low as $28 million if freeway-facing signage is disallowed. The CLA and CAO emphasized that resolving state law and Caltrans compatibility is essential: "The signage certainty around the signage must be resolved before my office could recommend moving forward with issuing $2,200,000,000 of debt," the CAO said.

Committee members and the CAO discussed timeline and schedule. Under the phased delivery scenario presented, construction would begin in September 2025, demolition of a portion of West Hall would begin January 2026, Pico Boulevard would be fully closed in February 2026 while the expansion is built over Pico, the exterior facade would be finished by March 2028 (before the nonexclusive Olympic use window) and the site would be substantially complete by December 2028–March 2029, with interior work finished after the 2028 Olympics. The CAO cautioned the schedule is aggressive and that a final price and project agreement must return to council for approval before debt issuance.

Labor and business testimony largely supported the expansion. Rob Notauf of the Los Angeles County Federation of Labor told the committee the project would produce construction jobs and long-term operations jobs and that trade-show work pays “good wages” and supports apprenticeship pathways. Multiple union representatives and neighborhood groups, including the Downtown Neighborhood Council and the DTLA Alliance, urged the committee to advance the project to restore downtown economic activity.

The committee approved the chair’s motion as amended, including (1) conditioning adoption of a project agreement on state law and Caltrans approval for freeway-facing signage; (2) instructing the Fire Department, Bureau of Engineering, Bureau of Contract Administration and a LADWP report within 30 days on phased delivery vetting; (3) directing the CAO, with CLA and other departments, to reengage negotiations with AEG Plenary Conventions LA on a phased delivery framework and to return with a final project agreement and cost estimate in June/July before the council vote. The committee also noted and filed the Department of Convention and Tourism Development report dated 08/14/2024 and the joint CAO/CLA report dated 01/31/2025.

The item will go to the full City Council on the next calendar day for consideration. The committee recorded the vote as: Councilmember Price — yes; Councilmember Hugo Soto-Martinez — yes; Councilmember Hurtado — yes; Councilmember Nazarian — yes; Councilmember Park — yes. The item passed as amended and will return to council for final approval and any debt-issuance authorization.

Next steps identified by staff and committee members included: securing clarity from state agencies on signage, finalizing the project agreement and fixed costs, and confirming debt-market conditions before issuing bonds. The CAO noted that interest rates and credit rating considerations remain material risks and that the city’s final recommendation to issue debt would require signage certainty and a completed project agreement.

Votes at a glance

- Motion: Authorize CAO to reengage with AEG Plenary Conventions LA on a phased expansion and modernization; approve CAO/CLA recommendations 2–6 as amended; condition project agreement on freeway-facing signage approvals; request 30-day vetting reports from relevant departments. - Mover: Chair Price (moved on record by Chair Price) - Second: not specified - Vote: 5–0 (Price, Soto‑Martinez, Hurtado, Nazarian, Park — yes) - Outcome: Approved (to be considered by full City Council)