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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