---

 ![](https://www.citywatchla.com/images/stories/Aug-2017/070v.png)

 [ LA WATCHDOG ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=12)

#  LA Convention Center: The Success Story City Hall Doesn’t Want You to Know

August 31 2017

Written by Jack Humphreville.

<a class="a2a_button_facebook"></a><a class="a2a_button_twitter"></a><a class="a2a_button_email"></a><a class="a2a_button_print"></a>[](https://www.addtoany.com/share)

LA WATCHDOG--*It is not government’s obligation to provide services, but to see that they are provided. – New York Governor Mario Cuomo*

The Los Angeles Convention Center reported an operating surplus of over $10 million for the fiscal year ending June 30, 2017, a significant turnaround from the deficits that were incurred when the Convention Center was managed by the City of Los Angeles prior to December of 2013. (Photo above: Los Angeles Convention Center.)

Of this $10 million, the Convention Center will transfer $3.1 million to the City to pay for the Convention and Tourism Development Department, to cover $1 million of the $3.5 million Staples debt service payment, and to reimburse various City departments for their services.

The balance of the surplus, other than $1 million that was directed to the Convention Center’s Reserve Fund, was reinvested in the facility through its Capital Improvement and Alteration and Improvement initiatives.

Underlying this metamorphosis from a drag on the City’s budget to a profitable enterprise that is generating record revenues is the implementation of a public private partnership orchestrated by Miguel Santana, the City’s former City Administrative Officer.

In December of 2013, the City entered into a five year management agreement with Anschutz Entertainment Group where AEG would operate the Convention Center.

![](https://www.citywatchla.com/images/stories/Aug-2017/070w.png)Since that time, AEG has generated $27 million in operating surpluses, reinvested $12 million in building improvements, established a $7 million Reserve Fund, and contributed millions to the City’s budget. The Convention Center is also contributing almost $700 million to the local economy through increased utilization of the facility that resulted in over 300,000 booked hotel nights and increased spending in DTLA and the rest of the City and surrounding communities.

For its services which included rationalizing the parking situation through improved systems, increasing the contribution from the food and beverage operation, and ramping up security, AEG received a management fee of only $350,000 and an incentive fee of a like amount. This is a bargain at two or three times the money paid to AEG.

Of course, AEG is benefitting from the economic activity at LA Live, Staples, and the Microsoft Theatre where it has invested billions as a pioneer in rejuvenating DTLA.

While many criticized the outsourcing of the management of this valuable City asset, all of the over 100 City employees that worked at the Convention Center continued to have jobs with the City or AEG or retired with very generous City pensions.

This public private partnership that is providing outstanding service to its many stakeholders and generating millions for our cash starved City is an excellent example of why the City needs to investigate other outsourcing arrangements. This would include the repair and maintenance of our streets, sidewalks, parks, and urban forest; vehicle maintenance; street cleaning; the Zoo; information technology; and numerous other services, both large and small.

While the City’s unions will go ballistic over the thought of any outsourcing, this may free up valuable resources to devote to other priorities, including, but not limited to, the homeless and affordable housing.

This sure beats another tax increase for hard working Angelenos.

*(Jack Humphreville writes LA Watchdog for CityWatch. He is the President of the DWP Advocacy Committee and is the Budget and DWP representative for the Greater Wilshire Neighborhood Council. He is a Neighborhood Council Budget Advocate. He can be reached at:* [*lajack@gmail.com*](mailto:lajack@gmail.com)*.)*

-cw

 [ ![LA DWP #2 (Pay Your Bill Help)](https://www.citywatchla.com/images/LADWP/dwp%20level%20pay%205-7-25.jpg) ](https://www.citywatchla.com/component/banners/click/82 "LA DWP #2 (Pay Your Bill Help)")

 ![](https://www.citywatchla.com/images/banners/signup-for-cw.png)

## Get The News In Your Email Inbox Mondays &amp; Thursdays

 Email

 [ ![Home - HHR Rent is too High - SB-2](https://www.citywatchla.com/images/HHR/AHF-rent-too-high.jpg) ](https://www.citywatchla.com/component/banners/click/104 "Home - HHR Rent is too High - SB-2")

[![](https://www.citywatchla.com/images/banners/something%20you%20should%20know2.jpg)](https://www.citywatchla.com/podcasts)

 ---

##  Featured CityWatch Stories

 [ ![](https://www.citywatchla.com/media/yootheme/cache/a9/070g-a9407aaa.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33278:they-said-it-made-no-sense-then-they-voted-yes&catid=327)

### [They Said It Made No Sense. Then They Voted Yes.](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33278:they-said-it-made-no-sense-then-they-voted-yes&catid=327)

INVESTIGATIVE ANALYSIS - Sacramento has streamlined housing approvals so aggressively that residents rarely get a heari…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/20/070h-20f29015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33277:trump-world-from-assassination-abroad-to-chaos-at-home&catid=395)

### [Trump World. From Assassination Abroad to Chaos at Home](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33277:trump-world-from-assassination-abroad-to-chaos-at-home&catid=395)

GELFAND’S WORLD - We’re at a moment when all sorts of political questions are coming to a head. And if that old phrase…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/4b/070i-4ba64015.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

### [Newsom’s Next Immigration Gamble: Defy Federal Law And Dare Washington To Fight Back](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33283:newsoms-next-immigration-gamble-defy-federal-law-and-dare-washington-to-fight-back&catid=375)

MY THOUGHTS - Gov. Gavin Newsom is about to decide whether California should take another extraordinary gamble with fed…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/44/071d-441a7ed2.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

### [As California Debated Sharing Data On Drivers, Homeland Security Subpoenaed 17 Million Records](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33308:as-california-debated-sharing-data-on-drivers-homeland-security-subpoenaed-17-million-records&catid=425)

TECHNOLOGY - California lawmakers wrestled with a difficult question earlier this summer: Could the state safely share…

 [ ![](https://www.citywatchla.com/media/yootheme/cache/88/071n-88bb0b90.png) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

### [Follow the Money: How Does a $3,662 Apartment Become “Affordable Housing”?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33300:follow-the-money-how-does-a-3-662-apartment-become-affordable-housing&catid=312)

INVESTIGATIVE ANALYSIS - ED 1 Is Redeveloping Los Angeles—One Neighborhood at a Time You know that persistent, annoyin…

---

##  [ LA WATCHDOG ](https://www.citywatchla.com/index.php?option=com_content&view=category&id=12)

 [ ![](https://www.citywatchla.com/images/stories/Sept-2026/071o.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33299:vote-no-on-charter-amendment-la&catid=12)### [Vote NO on Charter Amendment LA](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33299:vote-no-on-charter-amendment-la&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/070j.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33280:vote-no-on-the-highly-regressive-10-3-4-sales-tax&catid=12)### [Vote NO on the Highly Regressive 10¾% Sales Tax](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33280:vote-no-on-the-highly-regressive-10-3-4-sales-tax&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/067j.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33246:refund-rec-parks-vote-yes-on-charter-amendment-prk&catid=12)### [Refund Rec &amp; Parks: Vote Yes on Charter Amendment PRK](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33246:refund-rec-parks-vote-yes-on-charter-amendment-prk&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/Aug-2026/064h.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33202:proposition-38-should-taxpayers-finance-medical-research&catid=12)### [Proposition 38: Should Taxpayers Finance Medical Research?](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33202:proposition-38-should-taxpayers-finance-medical-research&catid=12)

 [ ![](https://www.citywatchla.com/images/stories/July-2026/059m.jpg) ](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33110:citys-assessed-value-increases-to-926-billion-despite-the-palisades-fire&catid=12)### [City’s Assessed Value Increases to $926 Billion Despite the Palisades Fire](https://www.citywatchla.com/index.php?option=com_content&view=article&id=33110:citys-assessed-value-increases-to-926-billion-despite-the-palisades-fire&catid=12)
<div data-id="1" 
	class="eb-inst eb-hide eb-emailform eb-1 eboxContentLocker"
	data-options='{"trigger":"onPageLoad","trigger_selector":"","delay":3000,"early_trigger":true,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":1,"reverse_scroll_close":true,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":10000,"close_on_esc":false,"animation_open":"slideInDown","animation_close":"fadeOutDown","animation_duration":400,"disable_page_scroll":true,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #1 - Global Email Signup Form","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog eb-formVer" role="dialog" aria-modal="true" id="dialog1" aria-label="dialog1">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<form action="https://citywatchla.us2.list-manage.com/subscribe/post?u=34d69f33624fd058ee9b56516&amp;id=4bfa422f51&amp;f_id=00d6c2e1f0" class="eb" method="post" id="mcform-1" name="mcform-1" target="_blank">
			<div class="eb-form-header"><p><img src="/images/2023/06/be-a-city-watcher.png" alt="be a city watcher" width="350" height="97" loading="lazy" data-path="local-images:/2023/06/be-a-city-watcher.png"></p>
<p>Sign up to receive our special e-news blasts on Monday and Thursday evenings!</p></div>
	
					<div class="eb-field-row">

			
			
			
			<input class="eb-input" type="email" name="EMAIL"  placeholder="Email address"  id="EMAIL" value="" required>

			
		</div>
										
	<div class="eb-footer">
    	<button class="eb-btn" type="submit" name="subscribe" style="background-color:rgba(93, 183, 93, 1);color:rgba(255, 255, 255, 1)">
    		Sign up    	</button>
    </div>
</form>			</div>
		</div>
	</div>	
</div>
<div data-id="3" 
	class="eb-inst eb-hide eb-yesno eb-3 "
	data-options='{"trigger":"onScrollDepth","trigger_selector":"","delay":0,"early_trigger":false,"scroll_depth":"percentage","scroll_depth_value":80,"firing_frequency":2,"reverse_scroll_close":false,"threshold":0,"close_out_viewport":false,"exit_timer":1000,"idle_time":1000,"close_on_esc":false,"animation_open":"fadeInUp","animation_close":"fadeOut","animation_duration":300,"disable_page_scroll":false,"test_mode":false,"debug":false,"ga_tracking":true,"ga_tracking_id":"G-P16BQ7X1SW","ga_tracking_event_category":"EngageBox","ga_tracking_event_label":"Box #3 - Yes \/ No Donation Popup Box","auto_focus":false}'
	data-type='popup'
	>

	<button type="button" data-ebox-cmd="close" class="eb-close placement-outside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>
	<div class="eb-dialog " role="dialog" aria-modal="true" id="dialog3" aria-label="dialog3">
		
		<button type="button" data-ebox-cmd="close" class="eb-close placement-inside" aria-label="Close">
	<img alt="close popup button" />
	<span aria-hidden="true">&times;</span>
</button>	
		<div class="eb-container">
						<div class="eb-content">
				
<div class="ebox-yes-no">
	<div class="ebox-yn-text">
		
		
		<div class="ebox-yn-headline" style="font-size:22px;color:#888888">
			<p>If you only give once a month, would you consider giving to CityWatch?</p>
<p>Your support fuels our mission to promote and facilitate civic engagement and neighborhood empowerment, and to hold area government and its politicians accountable.</p>
<p>Would you like to help? Even if you can only give $5, it will make a difference.</p>		</div>
			</div>
	
	<div class="ebox-ys-buttons" style="font-size: 16px;">
		
<a
					data-ebox-prevent="0"
		data-ebox-cmd="close"
				target="_self"
		href="https://www.citywatchla.com/donate"
		rel="noopener"
	
	
	
	
	class="ebox-ys-btn"
	style="background-color:#2ec664;color:#ffffff;min-width:100px">
	Yes
	</a>
<a
	
	
			data-ebox-cmd="close"
		href="#"
	
	
	class="ebox-ys-btn"
	style="background-color:#ef2345;color:#ffffff;min-width:100px">
	Not Right Now
	</a>	</div>

	</div>			</div>
		</div>
	</div>	
</div>