The California Legislative Analyst's Office “voiced doubts Friday about the level of economic benefit that would come from an NFL stadium in downtown Los Angeles, saying studies commissioned by the project's developer ‘likely overstated’ the financial boost it would deliver,” according to David Zahniser of the L.A. TIMES. Speaking to a state Senate panel reviewing AEG’s plan to build Farmers Field, policy analyst Mark Whitaker “warned that football stadiums typically have a minimal effect on a region's economic growth.” Whitaker gave his testimony “during a three-hour hearing of the Senate's Select Committee on Sports and Entertainment, which was reviewing the economic benefits of the project and the potential for a bill that would allow AEG to curtail legal challenges to the project on environmental grounds.” The written report received by the committee was “even more blunt, with analysts saying the state and region would see ‘minimal’ economic benefits from the project.” AEG President & CEO Tim Leiweke also spoke during the hearing and said his company “will not move forward” with stadium plans unless a bill to curtail legal challenges is passed. Still, AEG’s plan “drew opposition from county Supervisor Michael D. Antonovich, who said state officials should rewrite environmental law in a way that benefits government construction projects, not just AEG.” Antonovich “sent letters to lawmakers Friday urging them to oppose AEG's request” (L.A. TIMES, 8/27). In L.A., Dakota Smith reported Whitaker’s comments “were a curveball for lawmakers, some of whom reacted skeptically." Whitaker said that he "reviewed three key studies on the deal: The memorandum of understanding between the city and AEG; an independent financial study on the stadium and convention center done by AEG; and a city-contracted study" by Texas-based consulting firm Conventions, Sports & Leisure (L.A. DAILY NEWS, 8/27).
THIS TOWN AIN'T BIG ENOUGH: Leiweke on Friday said that he "expects Majestic Realty, which has a rival stadium proposal in the City of Industry, will file a lawsuit in an attempt to stop the downtown project." He also claimed that Majestic Realty VP John Semcken "was with lobbyists in Sacramento recently urging legislators not to pass any law that would help Farmers Field avoid litigation." Leiweke said, "Clearly John Semcken sees this as an opportunity to stop our project. We've had feedback from senators and assemblymen that met with them and they've questioned our character and me personally and they've questioned whether we really built and developed Staples Center and L.A. Live. This has led me to believe, without a question in my mind, that people that go around and question character are people that will litigate. They spent the week in Sacramento and I think they did themselves a disservice because almost everyone that came back to us was shocked at how they trashed us." Semcken "didn't deny he was in Sacramento speaking to legislators but said he and Majestic have no plans on filing a lawsuit to stop the downtown stadium project." He said, "In over 70 years Majestic Realty has never sued a competitor and has no plans to sue a business partner" (ESPNLA.com, 8/26). In California, Thomas Himes noted it "came as a shock to many people" when Industry Mayor Dave Perez last week said that Majestic Realty Chair & CEO Ed Roski "had recently expressed interest in possibly developing retail stores instead of an NFL stadium on his proposed site." NFL VP/Communications Brian McCarthy "declined to comment on the prospect of Roski developing stores instead of a stadium, but he said the NFL continues to monitor both projects closely" (WHITTIER DAILY NEWS, 8/27).
