Los Angeles City to Engage Consultant for Analysis of Convention Center Expansion P3 Proposal

The directive authorizes the City Administrative Officer (CAO) and Chief Legislative Analyst (CLA) to collaborate with AEG Plenary Conventions Los Angeles (APCLA) in conducting a thorough evaluation of the Public-Private Partnership (P3) proposal for the Los Angeles Convention Center (LACC) Expansion Project. This follows a 2016 report by Arup that examined two potential development pathways, confirming their alignment with the City's goals and financial implications for the City's General Fund.

A $1 million allocation has been provided for the CAO and CLA to conduct a meticulous review of the LACC Expansion Project. This review will encompass both the traditional city delivery method and the P3 model proposed by APCLA, focusing on analyzing costs, schedules, risk exposures, and cost-sharing arrangements.

The anticipated report, expected to be completed within 45 days, will provide detailed insights into critical aspects of the project. These include the estimated construction costs and scope, the net annual effect on the General Fund, its alignment with the LA 2028 Olympics/Paralympics timeline, the schedule for necessary payments, and a comparative risk analysis between the P3 methodology and traditional delivery approaches. Additionally, the City will likely employ its prequalified on-call term contracts for this study.