Page 391 - FY 2021-22 Blue Book Volume 2
P. 391
LOS ANGELES CONVENTION CENTER PRIVATE OPERATOR
BASIS FOR THE PROPOSED BUDGET
The 2021-22 Proposed Budget for the Los Angeles Convention Center Private Operator relates to current year
funding as follows:
Amount % Change
2020-21 Adopted Budget $ 29,187,723
2021-22 Proposed Budget $ 19,525,413
Change from 2020-21 Budget $ (9,662,310) (33.1%)
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 three 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 2021-22. AEG’s sources
of revenue are categorized as follows:
Actual Adopted Budget Proposed Budget
2019-20 2020-21 2021-22
Space Rent (net of discounts) $ 6,047,384 $ 5,396,610 $ 4,413,657
Parking 9,474,120 12,340,610 8,338,946
Utility Services 4,510,853 4,700,347 2,359,905
Food and Beverage (net) 4,759,901 4,518,891 1,285,693
Telecommunication Services 1,794,415 1,564,860 1,168,998
Other 1,837,108 1,666,405 1,958,214
1
Staples Incremental Parking Revenue (1,000,000) (1,000,000) -
Net Revenue $ 27,423,781 $ 29,187,723 $ 19,525,413
1 Other revenues include advertising, equipment rental, cell towers, audiovisual, event specific billing, and event specific expenses.
As part of the Management Agreement, AEG collects revenue from LACC operations, deposits those funds into a
separate off-budget operating account, and expends directly from the account based on a budget approved by the
Board of Los Angeles Convention and Tourism Development Commissioners (Board).
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