Insights on the LA Convention Center

Joel Kotkin on LA's convention center: "Aided by Mayor Antonio Villaraigosa, downtown Los Angeles' boosters are poised to dip again into the pockets of taxpayers to help finance a splashy new project. The cost this time is up to $300 million in loans, tax breaks and fee waivers for a $750-million, 54-story complex — including a 876-room Marriott Marquis, a posh 124-room Ritz-Carlton and 216 luxury condos — across from the Convention Center.

The argument used to justify the handout is well-traveled in development circles: The project would create new jobs, higher tax revenues, more convention business, and it would further brighten the image of the city's central core. Taxpayers and L.A. business owners should be wary of such promises, however, particularly when it comes to the Convention Center.

Let's look at the record. The Convention Center has been a consistent money loser for years, costing the city $30 million annually in debt service. Even Villaraigosa calls it a "white elephant."

Don's Take: Go easy on the convention business. Be sure the market is what you think it is. Don't over-build, over-spend, and over-expect. It won't save your city.