Downtown neighbourhood needed redevelopment
In the late 1980s and early 1990s Los Angeles’ downtown was seen as an unattractive, dangerous place dominated by industrial plants, auto dealerships, aging office buildings and low-rent hotels. A new arena to house the LA Lakers and Clippers NBA teams and the LA Kings NHL franchise was part of an area redevelopment plan that also included a new home for the LA Philharmonic and a new residential/office centre. Public contribution went to purchasing land and improving infrastructure
STAPLES Center was completed in late 1999 at a cost of $376 million. The public sector contribution was $71 million, which went to purchasing land and improving infrastructure. In addition to the arena project, the public sector also invested $287 million in a new convention centre. Today, L.A. LIVE attracts 12 million visitors a year, spawning further private investment
The arena project helped kick-start a major development boom that has created a vibrant commercial and residential neighbourhood. Today downtown LA attracts 12 million visitors per year. STAPLES centre is the biggest draw, with more than 250 events a year and 4 million paying guests. Operations from the development generate $2.5 million per year in tax revenue. The revitalization of downtown LA has spawned significant further private investment. Over 30 private development projects worth $4.7 billion are planned between now and 2015. |
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