Considered one of the biggest projects in LA Downtown’s history, LA Live has opened during one of America’s worst national economic crises. Although the project was master planned 10 years ago and ground breaking was in 2005 when the economy was in a boom cycle, LA Live’s recent opening has many skeptics wondering how it will thrive at this time. Why now?
The company behind LA Live, Anschutz Entertainment Group (AEG), could very well counter “Why not?” as their President and CEO Tim Leiweke explained their vision.
In an interview with the LA Downtown News, Leiweke said, “We were fortunate to find good partners that view the world the same way we do, which is that projects like this are iconic and they live for hundreds of years, not two years. If we were building a project that was for two years I’d be very nervous, because this is a bad period of time to be spreading risk out over a short period of time. That said, this project will be around long after all of us leave. So we look at this as a marathon, not a sprint. Our founding partners are all long-term deals, with Coke and Toyota and Wachovia and American Express and Target and Anheuser-Busch. That’s good for us. Our leases are all long-term deals, and obviously Nokia Theatre and Club Nokia, we own. ESPN’s here; this is their West Coast headquarters. This is a huge establishment for them. And although ESPN, like every other company, is certainly going to be affected by this recession, ESPN isn’t going anywhere.”
The present uncertain economy has resulted in a reduction in consumer spending and a 3% drop in retail and food service sales nationwide from the previous year, according to the UCLA’s Anderson Forecast. LA’s Convention and Visitors’ Bureau also reported that tourism has taken a downturn in the past weeks. Many conventions have already been cancelled, especially in the auto and finance industries.
Herzlich’s optimism stems from the company’s belief that LA Live will offer something that is direly missing in Downtown LA.
AEG expects 20 million people a year will eventually visit LA Live and the adjacent Staples Center and Convention Center. LA Live’s restaurants, bars and other attractions, including the recently opened bowling alley, the Lucky Strike Lanes; the Conga Room nightclub; Fleming’s Steakhouse; the 54-story high-rise with hotel rooms; and Ritz-Carlton condominiums will attract these millions of people. “More people means more business for everybody,” Herzlich added.
Dubbed as a transformative project, LA Live is expected to attract new business to Downtown LA and enliven the city’s historically lackluster convention industry. Thus, ultimately, not just Downtown, but the entire city of Los Angeles will benefit from the increased flow of visitors.
Already, tourism officials report booking 53 conventions and 650,000 room nights for the next few years - an 800% increase in room nights since 2005.
Many local business leaders are excited about the project, expecting it to usher new investment to the area, and bolster the business climate in the Downtown community.
More importantly, the expected visitors will be able to generate more sales for local businesses.
With millions attending a minimum of 20 major events a year in LA, such as the Grammys, the American Music Awards, an NBA or NHL All-Star game, plus another half dozen big conventions, additional developments will be created along with new jobs which will all result in a positive impact on the city’s economy.
Leiweke revealed that half of their condominiums have been sold already – to people who live in California, to those who live from other states and even from other countries such as Mexico, Korea, Japan, China and the Middle East.
Thus, AEG and city officials say that it is critical that every restaurant, every hotel, every store, and every business in Downtown Los Angeles prosper, along with LA Live.
What does this mean to the Asian community, including the Filipino Americans? The enterprising businessmen like the Chinese and Koreans in LA are already looking for business opportunities for development and expansion. FilAms, whether entrepreneurs or those in the service or retail industries, would do well to strategize and be prepared for the expected boom, so as not to miss out on the expected transformation of Downtown LA, with LA Live.
For as AEG officials firmly believe, LA Live is not going to be anything but successful, despite the economy. Their optimism, especially of Leiweke, who never blinked on the project despite the crisis, says something. It displays faith,guts and determination –values that are truly alive in LA Live! (www.asianjournal.com)
(Published December 24,2008 p.mdwk4 LAMIDWEEK)
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