City Council Approves Convention Center Hotel Financing
DOWNTOWN LOS ANGELES — City Council yesterday agreed to the subsidy plan put together for the convention center hotel to be part of the LA Live! project. The LA Times covers that story today, writing that the Bonaventure plans to keep fighting.
The Bonaventure's owners plan to pursue an existing lawsuit against the city challenging the deal as well as take the matter to the ballot, said Christopher Sutton, an attorney for the hotel.
"There is going to be a referendum or an initiative on this, one way or the other," Sutton said. "The voters aren't going to approve this."
Over in the Downtown News we read that the Bonaventure's tact isn't the one being taken by other Downtown hotels.
"It will only make the other hotels better," [Wilshire Grand Director of Sales Mike] Ouimet said. "That has been the drawback for our ability to compete for conventions with other cities. Only one hotel has spoken out against it."
The Wilshire Grand is spending $40mil to renovate and upgrade their facility. Unlike Sutton, I think there's enough muscle behind this -- especially AEG -- to keep on track. Hopefully the voters are smarter than Sutton gives them credit for.
Dana Gabbard on October 03, 2005, at 09:39AM – #1
Is the Bonaventure serious about mounting a referendum or just saber rattling? It costs serious money to get something on the ballot. I was part of the loose coalition that for a time was organizing against Yaroslavsky's subway measure. The word was with no opposition he still spent over $100,000 on it. Imagine what you would have to spend promoting a measure that has active opposition! Since it appears the rest of the business community isn't joining this cause, the Bonaventure will have to bear the cost alone. Would they spend that kind of money on a measure whose prospects are iffy at best (we don't know yet whether the Mayor will get involved and rally the proponents of the hotel) that if succesful will earn bad blood for years from the hotel boosters against the Bonaventure.
Eric Richardson (@blogdowntown) on October 03, 2005, at 11:20AM – #2
I really want to think it's sabre rattling. There are those who would say that the Bonaventure is just trying to rally up some sympathy (or at least a backstory) before releasing a plan to convert some of its units into residential. I think they just need to shut up and work on being a more inviting hotel. -e;