Los Angeles City Council unanimously endorsed the financial framework of an agreement between AEG and the city to build Farmers Field, a US$1.2 billion venue in downtown LA that would be attached to a new $275 million wing of the Los Angeles Convention Center. However, AEG president and CEO Leiweke is concerned that Majestic Realty, which has a rival stadium proposal in the City of Industry, will file a lawsuit in an attempt to block the downtown project.
“We've made it very clear that we will not move forward without this (legislation),” Leiweke said, according to ESPNLosAngeles.com. “We cannot and will not move forward with this project with that uncertainty hanging over our head because the NFL will not commit to Farmers Field with that uncertainty hanging over our head...Clearly (Majestic Realty vice-president) John Semcken sees this as an opportunity to stop our project.”
Leiweke added: “We've had feedback from senators and assemblymen that met with them and they've questioned our character and me personally and they've questioned whether we really built and developed Staples Center and LA Live. This has led me to believe, without a question in my mind, that people that go around and question character are people that will litigate. They spent the week in Sacramento and I think they did themselves a disservice because almost everyone that came back to us was shocked at how they trashed us.”
Semcken said: “In over 70 years Majestic Realty has never sued a competitor and has no plans to sue a business partner. We are 100% committed to returning the NFL to our region and have shown the league and the teams the tremendous economic upside of our project.” AEG is currently carrying out design and environmental work in the hope of breaking ground on the project by June 2012.
