Page 433 - FY 2020-21 Blue Book Volume II

LOS ANGELES CONVENTION CENTER PRIVATE OPERATOR

BASIS FOR THE PROPOSED BUDGET

The 2020-21 Proposed Budget for the Los Angeles Convention Center Private Operator relates to current year funding
as follows:

Amount % Change

2019-20 Adopted Budget $ 27,609,765

2020-21 Proposed Budget $ 28,417,544

Change from 2019-20 Budget $ 807,779 2.93%

In 2013-14, the City Council adopted several initiatives to make the Los Angeles Convention Center (LACC) a top-tier
convention center, one of which was the implementation of a private management structure. In October 2013, the City
executed a five-year agreement with AEG Management LACC, LLC (AEG) for the operation and management of the
LACC (Management Agreement). The City and AEG have executed two additional one-year extensions to the original
Management Agreement. The City continues to own the facility and the Department of Convention and Tourism
Development (CTD) serves in an administrative capacity providing contract oversight.

DETAIL OF REVENUES*

The AEG budget is based on an estimate of all revenues generated by LACC operations for 2020-21. AEG’s sources
of revenue are categorized as follows:

Actual Adopted Budget Proposed Budget
2018-19 2019-20 2020-21
Space Rent (net of discounts) $ 6,673,891 $ 7,412,403 $ 5,396,610
Parking 12,363,054 13,187,814 12,340,610
Utility Services 5,289,693 5,090,933 4,700,347
Food and Beverage (net) 4,562,585 4,795,851 4,518,891
Telecommunication Services 1,923,806 2,181,211 1,564,860
Other 1,386,993 1,334,169 1,666,405
1
Reimbursement of General Fund Costs (1,870,903) (1,573,616) (770,179)
Convention Center Facility Reinvestment (1,077,000) - -
2
Construction Contingency - (3,819,000) -
Staples Incremental Parking Revenue (1,000,000) (1,000,000) (1,000,000)
Net Revenue $ 28,252,119 $ 27,609,765 $ 28,417,544

1 Other revenues include advertising, equipment rental, cell towers, audiovisual, event specific billing, and event specific expenses.
2 The Construction Contingency is spread throughout the revenue categories for 2020-21.

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