Los Angeles will sell $275 million in bonds to tear down and relocate part of its convention center to make way for a $1.2 billion stadium for a National Football League franchise under a plan unanimously approved by the city council on Tuesday.
The plan calls for lease payments for the use of the land for the proposed 72,000-seat stadium, revenue from its parking structures and taxes linked to rebuilding the convention center wing to pay off the tax-exempt debt.
The stadium will be privately financed by Anschutz Entertainment Group and opened as Farmers Field in 2016.
The stadium would be located next to Staples Center, which AEG owns and operates. The subsidiary of the Anschutz Company has an ownership stake in the National Basketball Association's Los Angeles Lakers franchise and also owns the Los Angeles Galaxy of Major League Soccer.
"This is a major step forward. We have reached an agreement on the main business points with AEG," said Miguel Santana, city administrative officer for Los Angeles.
AEG still needs to secure an NFL franchise for the plan to move forward and that may take another year, Santana said.
Officials at AEG were not immediately available for comment.