City bets billions on Convention Center project

Those warnings did not discourage Mayor Karen Bass and a majority of the council, who said Friday that the project will create thousands of jobs and boost tourism and business activity, making the city more competitive on the national stage.

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“If we're not here to believe in ourselves, who's going to believe in us?” said Councilmember Adrin Nazarian, who represents part of the San Fernando Valley. “If we don’t invest in ourselves today, how are we going to be able to go and ask the major investors around the world to come in and invest in us?”

Councilmember Traci Park, who heads the council’s committee on tourism and trade, voiced “very serious concerns” about the city’s economic climate. Nevertheless, she too said the project is needed — in part because of the looming 2028 Games.

“This project will be transformative for downtown, and I truly believe the catalyst for future investment and redevelopment,” she said. “We need to bring our city back to life, and with world events looming, we don't have time to wait.”

Foes of the project say it is too expensive for a city that, faced with a daunting budget crisis, eliminated 1,600 municipal jobs earlier this year, and has also slowed hiring at the Los Angeles Police Department.

On the eve of Friday's vote, City Controller Kenneth Mejia came out against the project, saying on Instagram that it won't generate positive income for the city budget until the late 2050s.

“Due to the city’s consistent budgetary and financial problems with no real solutions for long-term fiscal health ... our office cannot recommend going forward with the current plan at this time,” he said.

The price tag for the Convention Center expansion has been a moving target over the past four weeks, increasing dramatically and then moving somewhat downward as the city’s budget analysts sought to assess the financial impact.

On Friday, City Administrative Officer Matt Szabo said the cost had been revised downward by nearly $100 million, which he largely attributed to lower borrowing costs, additional digital billboard revenue and a less expensive construction estimate from the Department of Water and Power.