Staff Reporter
The Los Angeles City Council’s Budget and Finance Committee is preparing to vote Tuesday on a major proposal to expand the Los Angeles Convention Center and issue bonds to fund the project, which now carries a price tag of $2.7 billion. The expansion, aimed at modernizing the facility for the 2028 Summer Olympics and stimulating downtown revitalization, has seen costs rise by $483 million since earlier estimates in March.
Story Highlights
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Los Angeles Convention Center expansion cost rises to $2.7 billion.
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Project includes 190,000 sq. ft. of exhibit hall space, 40,000 sq. ft. of meeting rooms, and 100,000 sq. ft. of multi-service space.
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Expected to create more than 13,000 construction jobs.
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Construction paused during 2028 Olympics and Paralympics.
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Bonds to fund the project will be repaid over 30 years, averaging $111M annually.
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Expansion projected to generate $30M annually post-completion, eventually $60M.
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Digital signage revenue faces reduction; state legislation may impact funding.
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Renovation of Gilbert Lindsay Plaza removed to reduce costs.
City officials say the expansion is a critical step toward ensuring the city is ready to host Olympic and Paralympic events. “Missing the Olympic readiness deadline could result in serious financial ramifications for the city, including losing the Olympic and Paralympic events currently planned to be held at the Convention Center,” warned City Administrative Officer Matt Szabo.
The project will add 190,000 square feet of additional exhibit hall space, nearly 40,000 square feet of new meeting rooms, and close to 100,000 square feet for a multi-service room. Szabo emphasized that the expansion will also generate more than 13,000 construction jobs during the project, providing a major boost to the local economy.
Construction will follow a phased approach, with work paused during the 2028 Olympics and Paralympics to avoid disruptions. The Convention Center is slated to host fencing, taekwondo, judo, wrestling, and table tennis during the Olympics, and wheelchair fencing, taekwondo, judo, boccia, and table tennis during the Paralympics.
Despite the potential benefits, city officials have acknowledged substantial risks associated with the project. Szabo noted, “There are serious risks with the construction timeline. Potential delays during construction could jeopardize the readiness for the Olympics and cause financial strain.”
The $2.7 billion budget is broken down as follows: $82 million for pre-construction costs, $35 million for a development fee, $566 million for city-retained costs, and $2.035 billion for design and construction. Cost increases have been attributed to tariffs, rising material costs, and what some committee members describe as “self-inflicted” expenses. The Department of Water and Power also anticipates higher costs due to conduit and cabling work and the relocation of utility vaults.
To finance the Los Angeles Convention Center expansion, the city plans to issue bonds to be repaid over 30 years, with average annual payments expected to total $111 million through 2058. Szabo explained, “The initial years of repayment will be more expensive, but once the expansion is complete, it is expected to generate $30 million annually. By 2033, that revenue could reach $45 million, eventually stabilizing at around $60 million annually to help offset the debt service.”
Another challenge for the project is reduced revenue from digital signage. The expansion initially assumed $61 million annually from new digital signs facing the Santa Monica (10) and Harbor (110) freeway interchange, but revised estimates show a reduction of $34 million. Mayor Karen Bass’ office has led efforts to pass state legislation allowing the city to construct the full signage program. Szabo cautioned that amendments to the legislation make it difficult to fully realize the expected revenue.
City officials also removed plans to renovate Gilbert Lindsay Plaza to lower the overall project cost. Despite these reductions, the Los Angeles Convention Center expansion remains a cornerstone project for the city’s Olympic readiness and downtown revitalization strategy.
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