L.A. Live Officials Remain Optimistic Despite Economic Downturn
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L.A. Live Officials Say There Is Less Supply,
More Demand For L.A. Live Venues Downtown |
The second phase of AEG's $2.5B L.A. Live complex opens this week, and now, "amid one of the toughest economies in recent history, the question is, will they come," according to Anna Scott of the L.A. DOWNTOWN NEWS. AEG officials -- who broke ground on the project in '05, "when the economy was in a boom cycle -- remain optimistic." L.A. Live Senior VP & Managing Dir Lisa Herzlich said, "It's unusual to develop a project like this in an area that has an engine like Staples Center that generates so much traffic. We've got 4.3 million people that come to Staples each year, and they don't really have any dining options before or after games and events. We're not unaware of the economy, but we feel that there is less supply and more demand in Downtown." L.A. County Economic Development Corporation Senior VP & Chief Economist Jack Kyser "agrees that an event-driven approach could help L.A. Live weather the economic storm and sagging tourism." Kyser: "They're opening into a tough market, but a lot of their potential market is local. They have a lot of things of interest, especially the Grammy Museum. I think there's going to be a huge curiosity factor." Herzlich "agreed that it will take time to gauge L.A. Live's ultimate impact" on downtown L.A. Herzlich: "It's a long-term investment. There will be short-term gains, there will be short-term bumps, but it's a long-term investment" (L.A. DOWNTOWN NEWS, 12/1 issue).
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Leiweke Says L.A. Live Is A
Long-Term Deal |
ALIVE AND WELL: AEG President & CEO Tim Leiweke participated in a Q&A with the L.A. DOWNTOWN NEWS' Jon Regardie, and when asked about "opening one of the biggest project in Downtown's history during one of the worst national economic crises of the last century," Leiweke said, "We were fortunate to find good partners that view the world the same way we do, which is that projects like this are iconic and they live for hundreds of years, not two years. If we were building a project that was for two years I'd be very nervous, because this is a bad period of time to be spreading risk out over a short period of time." Leiweke added, "We look at this as a marathon, not a sprint. ... Our leases are all long-term deals, and obviously Nokia Theatre and Club Nokia, we own." Leiweke said of attracting other events to the area, "We are submitting to bring the NBA and NHL All-Star games back here, and yes, we are actively working and pursuing bringing a Super Bowl here at some point or another in the future" (L.A. DOWNTOWN NEWS, 12/1 issue). Meanwhile, Leiweke said that AEG "did not scrimp on holiday festivities and decorations" for L.A. Live, "despite the tough economic times." Leiweke said that AEG "ended up spending twice as much as they'd planned on the digital" Christmas tree (LATIMES.com, 11/28).
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