Page 437 - 2022-23 Blue Book Vol 2

LOS ANGELES CONVENTION CENTER PRIVATE OPERATOR

BASIS FOR THE PROPOSED BUDGET

The 2022-23 Proposed Budget for the Los Angeles Convention Center Private Operator relates to current year funding
as follows:

Amount % Change

2021-22 Adopted Budget $ 19,525,413

2022-23 Proposed Budget $ 28,097,125

Change from 2021-22 Budget $ 8,571,712 43.9%

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 four additional extensions to the original
Management Agreement. The City continues to own the facility and the Los Angeles City Tourism Department (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 2022-23. AEG’s sources
of revenue are categorized as follows:

Actual Adopted Budget Proposed Budget
2020-21 2021-22 2022-23
Space Rent (net of discounts) $ 4,986,713 $ 4,413,657 $ 5,286,173
Parking 1,698,838 8,338,946 11,813,818
Utility Services 304,635 2,359,905 3,855,057
Food and Beverage (net) 2,679,937 1,285,693 4,223,294
Telecommunication Services 130,379 1,168,998 1,282,757
Other 1,802,981 1,958,214 1,636,026
1
Net Revenue $ 11,603,483 $ 19,525,413 $ 28,097,125
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 City Tourism Commissioners (Board).

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