After more than a decade of planning, and a couple of close calls in the home stretch, the City Council has given the go-ahead to the expansion of the Los Angeles Convention Center.
The more than $2.6 billion project involves the construction of a 325,000-square-foot structure above Pico Boulevard to connect the existing South and West Halls. The segment of Pico located below the new construction would be transformed into the primary vehicular pick-up and drop-off points for the expanded center.
The project, which is to be built in partnership with Plenary Group, would add 190,000 square feet of exhibit space to the facility in its first expansion since the 1990s. The addition will provide more than 1 million square feet of total exhibit space, a milestone which city officials have indicated will allow Los Angeles to compete for larger events against the likes of New York and Chicago (as well as regional rivals such as Anaheim, San Diego, and San Francisco). That would also allow for the Convention Center to increase rental rates that have been left unchanged for decades, which in combination with new signage revenue, could double the amount of money generated by the facility.
Populous is designing the project, which would be centered on a “skynode” lobby with an atrium extending all three levels of the building. Plans also call for a rooftop terrace dubbed “The Halo.”
Ground-level interior viewPopulous
While the final approval of the project was welcomed by representatives of organized labor and business, the vote to move forward came following several dire warnings presented by city staff. In particular, both the City’s Chief Legislative Analyst and Chief Administrative Officer have warned that the tight timeline imposed by the 2028 Summer Olympics and the City’s precarious finances are areas of concern.
The Convention Center is scheduled to host events such as judo and gymnastics in 2028, and will need to be turned over for exclusive use by the Olympics shortly before the start of the games. As completion of the expansion is not expected until mid-2029, work will need to progress to a point at which construction can be safely paused to allow the games to occur. Should the facility not be ready for the facility, the City of Los Angeles could face financial penalties for failing to fulfill its agreement with the LA28 organizers, and events scheduled for the Convention Center could be moved out of Downtown.
South Hall entryPopulous
Likewise, the cost of the project has proven to be a major concern coming out of a budget crunch which forced the City of Los Angeles to cut jobs. Even after accounting for revenue gleaned from events and digital signage, the average cost to the City’s general fund is still expected to be an average of $89 million per year over the coming three decades.
Dire warnings about finances and the project timeline prompted a vote by the City Council’s Budget and Finance Committee last week to recommend not moving forward with the project, with Budget Committee Chair Katy Yaroslavsky calling for instead implementing a smaller suite of upgrades which would not have added new exhibit space to the facility in the short-term, and postponing an expansion until a later date. She, along with 4th District Councilmember Nithya Raman, cast the lone “no” votes against the project.
Aerial view of Gilbert Lindsay Plaza looking northwestOlin
Going into the Council vote on September 19, the project received some good news that may have buoyed its chances. In addition to statements of support from Mayor Karen Bass and City Council President Marqueece Harris-Dawson, negotiations with the development team helped cut some costs from the project, while the Federal Reserve’s announcement of a cut to its benchmark interest rate decreased the cost of financing.
Nonetheless, the final project does not reflect several elements originally pitched as part of the Convention Center overhaul. As part of a cost-saving measure, the proposed renovation of Gilbert Lindsay Plaza has been tabled and will move forward as a standalone project.
Aerial view looking northeastPopulous
Likewise, plans for an expansion of the neighboring J.W. Marriott hotel complex by AEG have been put on hold, pending improved economic conditions.
City officials estimate that the Convention Center project will generate 15,000 jobs and $652 million in General Fund tax revenue over 30 years, while also drawing $150 million in additional visitor spending annually.
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