Are California Officials Overestimating L.A. Coliseum's Value?
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L.A. Coliseum Commission
Boss Criticizes Sale Proposal |
L.A. Memorial Coliseum Commission President Zev Yaroslavsky Thursday criticized California Gov. Arnold Schwarzenegger's proposed plan to sell the stadium, arguing that the Coliseum is "priceless as a national historic landmark, yet wildly overvalued by some politicians," according to Sam Farmer of the L.A. TIMES. State Sen. Jeff Denham estimated that the Coliseum and neighboring Exposition Park properties are worth $400M, and Yaroslavsky said, "If anybody thinks that you're going to get $250[M] or $400[M] for this property, guess again. I've got some beachfront property in Nebraska I'd like to interest you in." Yaroslavsky and Coliseum GM Pat Lynch Thursday both referred to a $16M "estimate for the stadium land, an appraisal made" in '01. Farmer notes the state "owns the land on which the Coliseum and Sports Arena sit, and rents the venues" to the Coliseum Commission for $1M annually. The commission, in turn, "rents the stadium -- which is owned in equal parts by the city, county and state -- to USC for roughly 8% of football ticket sales." That the state "doesn't own the Coliseum outright makes a potential sale even more complicated, and perhaps impossible." While USC last year made an offer to purchase the Coliseum, Yaroslavsky Thursday said, "I don't think USC has any interest in buying it. ... There's no reason for them to acquire this facility, and there's no reason for us to turn it over to them." However, Farmer notes it would "create other interesting possibilities" if USC did buy the stadium, as the NFL, "which for years has been frustrated in its dealings with the various governmental bodies involved with the Coliseum, might be willing to return to the bargaining table if negotiating with a single owner" (L.A. TIMES, 5/15). USC said that it "isn't actively looking to be the owner because under its lease deal the state has agreed to pay" for about $60M in renovations. USC Associate Senior VP/Real Estate & Asset Management Kristina Raspe said leasing "makes more sense" (WALL STREET JOURNAL, 5/15).
STILL FIT FOR A KING: In Sacramento, Tony Bizjak reports Schwarzenegger's budget plan, which includes the sale of Cal Expo, is "unlikely to end efforts to build" a new arena on the site for the NBA Kings. State officials said that they "approve of Cal Expo's effort to bring a private developer aboard to build a new fairgrounds, an NBA basketball arena, and an urban community of homes, businesses and stores." California Department of General Services Dir Will Bush said selling the Cal Expo land to a private developer may "at the end of the day, move the (arena) project faster." Bush: "We are hoping the dialogue with the [NBA] will continue." But should Schwarzenegger win legislative approval for his proposal, it "likely would force Cal Expo and the NBA to rewrite their development plan." An NBA source said that the league "feels it must make significant progress this year on an arena deal to keep" the Kings in Sacramento (SACRAMENTO BEE, 5/15).
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