Politics & Government

Antonovich Drops Call to Lift Environmental Barriers for Stadium, Libraries, Hospitals

Supervisor opposed special legislation for Farmers Field alone. Developer cites potential conflict of interest.

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County Supervisor Mike Antonovich today withdrew a recommendation that the Board of Supervisors oppose AEG's efforts to fasttrack environmental approvals for its proposed downtown football stadium, in the wake of conflict-of-interest allegations made by the company.

Antonovich is currently Los Angeles County mayor. Chatsworth is within his district.

Anschutz Entertainment Group's attorneys sent a letter to the county counsel's office on Monday, arguing that it was inappropriate for Antonovich to participate in any decisions which could have a financial impact on AEG while the supervisor's wife is in a legal dispute with the company over consulting fees.

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The supervisor's recommendation called for dropping regulatory barriers posed by the environmental review process for a host of other projects like hospitals and libraries.

"Rather than passing laws for special interests, the state Legislature should eliminate those rules and regulations that create barriers,'' he said.

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The language of the motion asked that "the Board of Supervisors oppose any efforts to protect a football stadium project from environmental challenges unless hospitals, libraries, schools, transportation projects and other vital public and nonprofit facilities are also included in the expedited development process.''

AEG's lawyers said Christine Hu Antonovich is embroiled in a dispute with an affiliate of AEG over fees she says she is owed for introducing them to Chinese officials, according to the letter prepared by the company's San Francisco-based law firm.

Antonovich said he was "surprised'' that AEG brought his wife into a situation where he was "working to protect the interests of the county.''

In 2009, the board, led by Supervisor Gloria Molina, opposed a similar
move by the backer of a football stadium in the City of Industry, ultimately granted in Assembly Bill 381. In the language of that motion, Molina pointed out that "all sorts of valuable projects manage to be built without the necessity of CEQA exemptions.''

An AEG official told legislators on Friday the company needs protection from "frivolous'' lawsuits in order to move forward with its $1.5 billion proposal to build a 68,000-seat football stadium and convention hall downtown.

Without such protection, related to environmental challenges to the project, lawsuits could delay the project for up to two years and scare off potential NFL owners, according to AEG.

AEG's plans include tearing down the city's 40-year-old West Hall of the convention center and replacing it with the new stadium, which would be called Farmers Field. The developer would build a new convention wing adjacent to the existing South Hall, growing the overall size of the city's convention space and making it the fifth largest in the country. The project also includes two new parking structures.

Earlier this month, Los Angeles city officials signed a non-binding agreement with AEG detailing how the project would be financed and allowing the developer to move forward with stadium and convention center designs and an environmental impact report.

Under the agreement, AEG would be solely responsible for funding the new stadium.  The new convention hall would be funded by about $275 million in city-issued tax exempt bonds, which AEG would be obligated to pay for.

City officials contend the agreement shelters taxpayers from exposure by requiring AEG to secure an NFL team before it can break ground on the project and requiring the developer to build the city's new convention hall and parking structures before it can start building the stadium.

AEG has also agreed to an initial $50 million letter of credit, in case the deal sours once the bonds have been issued and construction begins. Annual payments on the bonds are expected to start at $11 million.

AEG officials said last week they are about half-way through completion of the environmental impact report, which will include recommended solutions to minimize traffic and off-set environmental effects of building the stadium.

AEG expects to complete the EIR by next May and hopes to break ground on the project by next summer.

An announcement of a team deal is unlikely before the NFL Super Bowl in early 2012.

-- City News Service


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