AEG: Cost of bond issue can be cut by $50M

Paul Patsis, president of market management for Farmers Insurance, center, poses with Los Angeles Kings cheerleaders, Tuesday, Feb. 1, 2011, during a ceremony naming a new NFL stadium in Los Angeles. A proposed NFL stadium in downtown Los Angeles would be called Farmers Field under a 30-year naming-rights deal between developer AEG and Farmers Insurance Exchange. (AP Photo/Nick Ut)

The builder of a proposed NFL stadium said it can shave more than $50 million from a $350 million bond issue it needs to fund two parking structures and relocate the west hall of the Los Angeles Convention Center.

Anschutz Entertainment Group had previously said it would eventually repay the $350 million bond, which would be issued by Los Angeles because the city could get a more favorable interest rate than if AEG had sought a loan.

Now, AEG is offering to pay the cost, estimated at more than $50 million, to build parking structures for fans attending games at the proposed stadium. That would reduce the bond issue to the high $200 million range.

"What we are talking about is covering the cost of two parking structures," AEG spokesman Michael Roth said, adding that the bond would be reduced to the "high two hundreds."

The official proposal is to be made today to the city's Ad Hoc Committee on the Stadium and Events Center.

"I think it's a significant move," said City Councilwoman Jan Perry, whose district would house the stadium. "It's a step in the negotiations and welcome in reducing what is being asked of the city."

Denver-based AEG has been pushing the city for action in the negotiations with company President Tim Leiweke setting a July 31 deadline for a commitment.

He said the deadlinle is needed in order to let the National Football League know it's making progress.

Also on Wednesday, officials announced that the international architectural firm Populous will help with the environmental impact report and design of a new facility as part of the relocation of the West Hall.

Populous will be preparing work for 210,000 square feet of exhibit space, meeting rooms and other related facilities.

The firm was selected by the Convention Center and the firm hired by AEG to oversee its portion of the project.

Source: http://www.dailynews.com/news/ci_18381080?source=rss

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